Youngstowns New Economy

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Youngstowns New Economy

• Defining Youngstowns Future in
• the New Economy
• Youngstown New Economy Working Group
• Initial Session
• November 6, 2003

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Youngstown and the New Economy Planning for the
Future
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Youngstown New EconomyGuiding Principles

• Youngstown and the Mahoning Valley are part of a
  much larger economic region stretching from
  Cleveland/Akron to Pittsburghimportant business
  linkages exist between firms and institutions
  located throughout this expansive region.
• Economic Growth is key to reversing population
  decline of the city and for the MSAjob growth
  must be sufficient to meet increased numbers of
  persons entering the workforce if a local region
  is to support a growing population.

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Youngstown New EconomyGuiding Principles

• Economic growth occurs when aggressive,
  competitive enterprises compete successfully with
  businesses in other regions for customersthe
  result is that the local region grows faster than
  other places.
• Businesses and jobs are ever changingjobs are
  becoming skilled and require more education and
  training firms must stay abreast of
  technological change in their product markets or
  face loosing market share and customers.
• Technology-intensive enterprises within the
  Valley are key to increased demand for knowledge
  workers that are crucial to increased
  productivity and rising incomeslocal regions
  with more educated workforces experience greater
  increases in real income per capita and
  productivity per worker.

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Youngstown New EconomyGuiding Principles

• Link to the core goal of a sustainable
  citystabilizing the population at 80,000
  peoplepopulation change and job development are
  inter-dependent forces.
• Effectively partner with education institutions
  to increase educational attainment of current and
  future workforce living in the cityquality and
  mix of the labor force and the mix of skills
  employers wantshort term and long termalso are
  interdependent.
• Create a place based on Smart Growth
  principleswith an emphasis on green, clean and
  safe environment that is economically and
  environmentally sustainable long term.

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Youngstown New EconomyGuiding Principles

• Create jobs for young people and college-educated
  adults in the city and region, the target of
  efforts to recreate quality neighborhoods and a
  vibrant city core capable of holdyoung and
  educated workers are attracted to quality
  neighborhoods and lifestyle amenities.
• Create a technologically smart core of the
  citycreating a smart growth city that includes
  advanced telecommunications and fast-speed
  wireless communication is important to attracting
  high-tech workers and their employers to the city.

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Youngstown and the Mahoning Valley An integral
part of a much larger economic region
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The Mahoning Valley is part of the Historic
Western Reserveland mass equivalent to the state
of Connecticut
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The Economic Future of Youngstown is tied to the
economic potential of the larger economic region
of northeast Ohio

• Business-to-Business Relationships within Greater
  ClevelandPittsburgh Corridor
• Mahoning Valley businesseseven servicessell in
  markets elsewhere in northeast Ohio and outside
  Ohio. As well, local businesses make significant
  levels of purchases from businesses elsewhere in
  northeast Ohio and western Pennsylvania.
• 8 of 10 service firms selling to other
  enterprises have a portion of their customers
  outside the Mahoning Valley.

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Mahoning Valley An Integral Part of Northeast
Ohio Western Pennsylvania Labor Markets

• On net 14,000 Valley workers commute to
  workplaces outside the region
• Valley businesses are customers and suppliers to
  many businesses in the larger region
• Substantial numbers of Mahoning Valley workers
  commute to Mercer and Lawrence counties in
  Pennsylvania and Stark, Portage, Summit and
  Cuyahoga counties elsewhere in northeast Ohio.

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The capacity of a region to support a growing
population is directly linked to the rate of
economic growth Too little and we cannot absorb
a growing labor force.

• The number of persons moving into the region
  begins to decrease because of insufficient job
  market opportunities at the same time the number
  of local residents moving away in search of new
  or better jobs increases. This leads to net
  population loss.
• The population loss for the Mahoning Valley would
  have been greater had not greater numbers of
  Valley residents found jobs in adjacent counties.

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Creating Regional Job Growth Rising Standard
of Living

• In the next 5 to 10 years
• Increased sells of goods and services purchased
  by customers outside the Valley, and, more
  importantly, outside northeast Ohio.
• Local economies are not carbon copies of the
  national economy they reflect distinct clusters
  of industries that gravitate to certain locations
  because of competitive advantages that accrue to
  firms in those locations. In the Valley, Advanced
  Manufacturing, Construction, Information
  Technology, and Health Care are starting points
  in evaluating prospects.
• Both private and public enterprises are key to
  expanding the volume of exports of goods and
  services to customers located outside the Valley.
  For example, increased enrollment of YSU students
  coming from outside the Valley, increased tourism
  serving visitors from outside the region,
  increased exporting of manufactured goods shipped
  to markets outside the region, increased medical
  services delivered to patients living outside the
  Valley.

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Creating Regional Job Growth Rising Standard
of Living

• Increased sale of goods and services to customers
  within the Valley who would otherwise purchase
  them from enterprises located outside the
  Valley--Every time we spend our money outside our
  region, we are helping other economies growwhen
  we place orders from a Lands End catalog,
  vacation at Disney World, and, even when we send
  our children to Duke University, we help these
  economies grow.
• Examples increased percentage of Valley high
  school graduates choosing YSU and KSU-Trumbull
  for their post-secondary education, increased use
  of Youngstown arts and entertainment services by
  Valley residents as they choose to enjoy an
  expanded array of cultural services within the
  city rather than traveling to Pittsburgh or
  Cleveland regions for these experiences, local
  businesses purchasing from Valley suppliers
  instead of ones located elsewhere major
  institutions increasingly require suppliers to
  locate within City for major business contracts,
  and etc.

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Creating Regional Job Growth Rising Standard
of Living

• Longer term15 to 20 years
• Economic development depends on regions being
  successful at replacing industries and jobsin
  the long term, industries come and go.
• Communities must create new sources of
  competitive advantage by developing the kind of
  service base that endures, making the community
  an attractive place to live, work and do
  business.
• Long term, it is the recreational, cultural and
  natural amenities that create the basis for
  attracting new industry.

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Creating Regional Job Growth Rising Standard
of Living
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From Short Term to Long Term EconomicGrowth
Development
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Mid to Long Term StrategyBecoming a Smart Region

• A smart region is one that has well-educated and
  skilled workforce matched with firms that utilize
  technology and skilled workers to create market
  advantage, whether they are serving local or
  distant markets. Urban regions with the better
  educated workforce are also ones which have
  industry that employ a higher percentage of
  knowledge workers.
• What mid-size city regions have achieved this
  goal? What can be learned from their experience?
• Creating a smart community is a chicken and egg
  dilemma. Which comes first, the development of an
  educated population or the jobs which demand an
  educated population? It is important to work on
  both.
• Are the entrepreneurs and workers in the
  Youngstown Incubator home grown or a mix of
  individuals that are from here and elsewhere?
• What can make this work in the mid to longer
  term? To what extent do local firms have
  proprietary products or processes?
• How do local firms go about solving product or
  production problemsin manufacturing and in
  services?