Bay Area Houston Economic Partnership

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Bay Area HoustonEconomic Partnership

• Focus Group Findings
• 2004
• Board Retreat
• October 12, 2004
• Dr. Glenn Freedman

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What is the Next Move?
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What is the Next Move?
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• December
• Presentation of 2005 Plan and Budget

• October
• Board retreat
• Draft of Annual Plan

• November
• Annual Plan
• Budget

Annual Plan Process for 2005

• August
• Focus group meetings

• September
• Report of Findings

• July
• EC Approval
• Notification of Participants

• June
• Cluster Identification
• Process Planning

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Process

• Nine Focus Groups in August 2004
• 180 people
• Strategic Plan was Framework
• Organizing Questions
• What are the trends for each industry?
• Whats next for each industry?
• What can BAHEP do to assist each industry?
• What can BAHEP do for you?

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Cluster Group Focus Groups

• Aerospace
• Retail
• Petrochemical
• Tourism-Hospitality
• Professional Services
• Health Care
• Economic Development
• Education
• Municipalities - Government

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Aerospace

• What are the trends for your industry?
• Whats next for your industry?
• What can BAHEP do to assist your industry?

• Extension of areas core competencies to other
  sectors from control systems to systems
  engineering to remote sensing to life sciences
• Non-government and non-NASA for new business

• New Markets? Homeland security, FAA, DoD
• Adjust along with NASAs changes
• Consolidations and m/as New jobs to BAH?

• Advocacy Continued Specifics on what is needed
  from whom and how
• Partnerships with Other Sectors
• Increased awareness of aerospaces importance to
  region
• Comparative ED studies, forecasts and trend
  tracking

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Retail

• What are the trends for your industry?
• Whats next for your industry?
• What can BAHEP do to assist your industry?

• The Magic 10 Mile Circle
• Services morphing into retail
• Increasing of employees and outlets

• Responding to market demands
• Regional planning with local government
• Shifting consumer patterns

• Seek loyalties to local retailers
• Data on trends and shifts in region
• Local and state advocacy (especially when
  industries collide e.g., sales tax impacts,
  service taxation)
• Image management

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Petrochemical Specialty Chemical

• What are the trends for your industry?
• Whats next for your industry?
• What can BAHEP do to assist your industry?

• Productivity up, costs down, profits flat
• Workforce smaller, but better skilled
• Foreign Competition
• Product development and vertical alignments
  changed

• Critical to get public support
• Optimize new supply chain models
• Downward curve, without some changes

• Regional cooperation, Public Appreciation,
  Governmental Support
• Image Building
• Fiscal incentives
• Expansion to RD

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Tourism - Hospitality

• Family business up
• Regionalism slooooooooowly taking root
• Houston as business (not vacation) destination
  unchanged
• Magic 350 Still a reality

• What are the trends for each industry?
• Whats next for each industry?
• What can BAHEP do to assist each industry?

• What are the trends for your industry?
• Whats next for your industry?
• What can BAHEP do to assist your industry?

• Tied to Houston
• Tied to Regionalism
• Tied to Investment of HOT and other funding
  sources
• If_____, then _____ Scenarios

• Advocacy Local and State
• Transportation and other partnerships
• Data coordination and management
• Regionalism

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Professional Services

• What are the trends for your industry?
• Whats next for your industry?
• What can BAHEP do to assist your industry?

• Increasing competition and consolidation
• Decreasing community ties, with larger service
  orgs.
• Service models more retail-like

• Demand (population and its attributes) dictates
  who is providing what to whom
• Bull/Bear indicators vary by sub-sector (from
  financial service to legal to real estate to

• Increased local B2B client development
• Advocacy especially with local government
• Assist new businesses to get established

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Healthcare

• What are the trends for your industry?
• Whats next for your industry?
• What can BAHEP do to assist your industry?

• Medical and retail models are morphing
• (Un)(Under)Insured and healthcare cost crisis
• Staffing and Capacity

• The economics of healthcare defines the future
• Emerging options for prevention, wellness, and
  alternative sources of care
• Impact of technology and research changes field
  continually

• Advocacy done by professional organizations
  Synergy possible?
• Healthcare (changing) and Biosciences (emerging)
  need different things from BAHEP now
• Economic impact assessments

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Economic Development

• What are the trends for your industry?
• Whats next for your industry?
• What can BAHEP do to assist your industry?

• Increasing cross-boundary cooperation and
  coopetition
• Cooperation most likely for expensive initiatives
• Shifting industry base

• Establishing comfort zones across all entities
• Rules, Roles and Responsibilities across region
• Solve the I, Me, We Problem
• Metrics and ROIs

• Sustain region approach and regional leadership
  role
• New tools Best practices, winning strategies,
  lessoned learned
• Metric management and interpretation
• Trend tracking

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Education

• Education/Workforce Development Committee
  increasing cross-organizational partnerships
• Funding is uncertain and likely changing
• Industries with shortage, re-skill needs

• What are the trends for your industry?
• Whats next for your industry?
• What can BAHEP do to assist your industry?

• Expanded levels of cooperation and new ways of
  doing business
• Pre-K 16 Mindset
• Better use of data for decision making,
  accountability

• Develop high-learning super-community mindset
• Assist in creating learning industry cluster and
  programs that support it
• Local and state advocacy (business perspective)
• Support EWDC

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Municipalities - Government

• Regional initiatives underway in a context
• Regional approaches to common issues e.g.
  transportation, Ellington..

• What are the trends for your industry?
• Whats next for your industry?
• What can BAHEP do to assist your industry?

• Changing demographics, job mix and growth
• Data and demographic driven decisions
• Transportation and other infrastructure change
• Fiscal pressures continue
• Targeted planning/recruitment across governmental
  agencies to identify and solve problems
• Shifts in local niches

• Regional perspective from incentives to
  smoothing
• Host meetings of CAs, mayors, others
• Tackle regional issues and initiatives, like
  Ellington, bio-corridor, joint ventures
• Municipal R-E-S-P-E-C-T
• Data coordination and management

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Summary of Findings
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Key Finding 1
BAHEP The Rain Maker

• Regional Perspective Increasingly Relevant and
  Understood
• So

• Continue coordination role for business
  recruitment, retention, expansion, creation.
• Add dimension of regional business attraction
  strategy.

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Business Attraction

• Its about JOBS the right ones in the right
  places at the right times
• Coordination of financial incentives
• Consistent approach to nonfinancial incentives
• Ex. Site selection, land banks, research parks,
  enterprise zones, research capacities, education
  and training, clustering

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Business Attraction Its the Whole Environment
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Key Finding 2
BAHEP The Trusted Data Source

• Expectations for BAHEP? That economic
  development is regional, and it also involves
  data and infrastructure.
• So

• Ex. Transportation, Governance Coordination,
  Proactive-Reactive. Models of ED, Data collection
  and dissemination.
• Are these BAHEPs responsibility?

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Expectations
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BAHEP Expectations and Reality?

• Data Warehousing The Continuing Questions
• What Data Should BAHEP Collect? What Analyses
  Should BAHEP Undertake? What Should BAHEP
  Disseminate?
• The Infrastructure Issues
• BAHEPs Mission
• Resources
• Outcomes
• Demand

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Key Finding 3
BAHEP The Door Opener

• BAHEPs advocacy role is better understood and
  more important.
• So

• Advocacy for What?
• Cluster Advocacy.
• The Perils of Being a Gate.
• Advocacy and Image are Directly Related.

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Key Finding 4
BAHEP The Enabler

• Hands-On Support. There is more interest in
  inter-cluster and intra-cluster synergy.
• So

• Time and Resources to Build the Synergies.
• Entrepreneurialism.
• A Long-term Commitment.

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Hands On Support What is Success?
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Key Finding 5
BAHEP The Quick Change Artist

• Paradoxes

• We are regional, but you better take care of my
  specific concerns!
• Think globally, but act locally.
• Dont like government messing with us, but
  government is essential to get the things we
  want.
• Everyone wants economic development, but no one
  can make it happen by themselves.
• Everyone wants economic development, but no one
  defines it the same way.

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Paradoxes
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SUMMARY

• Business Attraction Jobs
• Advocacy Regional Perspective and Non-Partisan
• Hands-On develop the synergies across groups
• Expectations Development Infrastructure and
  Data Delivery
• Paradoxes The Pressures of the Mixed Messages

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Employment ClustersThe Six Queens

• Aerospace/ IT
• Petrochemical
• Hospitality-Tourism
• Biosciences/Biotechnology/Healthcare
• Government
• Transportation

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Bay Area Houston Center of Six Clusters

• Six Cornerstones of the Regional Economy
• Represent Six Intersecting Arcs that Meet in Bay
  Area Houston
• Leveraging Options across Region
• Need to Define Service Area and Services
  Primary, Secondary, Tertiary

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Petrochemical Aerospace/IT Tourism/Hospitality
Transportation Life Science/Bio-Medical Govt
HS, CG, Res.
Regional Industry Clusters Existing and
Emerging
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Next Steps

• Examine all the findings.
• Establish priorities and direction.
• Craft the annual plan and budget.
• Go forth and multiply.

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Questions and Comments
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Economic Development