Macomb County, Michigan Targeted Industries Study

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Macomb County, MichiganTargeted Industries Study
August 2006 Presentation to Focus Macomb
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Targeted Industries Study

• Part 1
• Targeted Industry Focus
• Part 2
• Branding and Marketing Macomb

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98 want to attract new business, but 70 have
no written business attraction plan
International City/County Management Association,
Economic Development Survey 2004
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Mapping Macombs assets
Study Objectives
for targeted growth.

• Business Retention Expansion
• Organic Growth
• Leap Growth

to economic opportunity

• What industries or business sectors would Macomb
  be most closely aligned with?
• Primary secondary targets

• What does Macomb have to offer?
• What strengths can be leveraged?

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for targeted growth.
An economic entity that exists on its own, but
draws strength from regional partnership and
collaboration (Personal interview/Internal
Macomb, 03/06)

• Business Retention Expansion
• Organic Growth
• Leap Growth

Advanced manufacturing Alternative
Energy Bio-chemistry Homeland
Security/Defense Medical/Healthcare
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Mapping Macombs Assets
Targeted Industries Study
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Distribution of Employment in Macomb County
vs. other regions
Source U.S. Census Bureau, U.S. County Business
Patterns, 2003
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Mapping Current Employment
Leverage
As of Total Macomb Employment
Develop
Low
U.S. Projected Growth for Industry
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Mapping Macomb Current Employment
Enhance/Expand
Leverage
Retail Trade
As of Total Macomb Employment
Develop
Low
Finance, Insurance, Real Estate
Professional Business Srvs., Mgmt. Scientific
Technical Consulting
Construction
Wholesale
Information
Transportation Warehousing
Agriculture
U.S. Projected Growth for Industry
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Internal Perspectives

• A survey of Macomb County business (Mar. 2006)
  identified key drivers in their decision to
  choose Macomb
• Geographic proximity
• Proximity to markets and customers
• Availability/cost of land/buildings
• Skilled workforce (only mentioned by
  manufacturing segment)
• Perceived good business environment 63 of
  businesses surveyed rated Macomb very good to
  excellent as a place to do business.
• Optimistic growth outlook 60 of manufacturing
  companies anticipate needing manufacturing
  skilled trade and 50 anticipate needing
  engineering skills for continued growth.

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How would you rate Macomb as a place to do
business?
Source Intellitrends LLC, Macomb County
Business Insight Study, 03/06
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How would you rate Macomb as a place to do
business?
Highest rated Geographic location Quality of
life Lifestyle infrastructure Proximity to
markets Proximity to suppliers
Lowest relative rated Grants, funding Tax
incentives Taxes Cost of land Cost of labor
Source Intellitrends LLC, Macomb County
Business Insight Study, 03/06
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Industry Situation Manufacturing Going Global

• Quality products services
• Competitive pricing/cost
• Engineering capabilities

• Competitive pricing/cost
• Cost of labor
• Skilled workers

Markets
60 serve national/global markets
Source Intellitrends LLC, Macomb County
Business Insight Study, 03/06
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Optimistic Employment Outlook
Over the NEXT 3 YEARS, how do you anticipate your
Macomb employee base will change?
Source Intellitrends LLC, Macomb County
Business Insight Study, 03/06
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What are the primary skill areas you anticipate
needing for continued growth?
Source Intellitrends LLC, Macomb County
Business Insight Study, 03/06
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Targeted Industries Study
External Dynamics
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Key Drivers for Business Relocation/Development

• U.S. CEOs surveyed in March 2006 identified the
  7 most important issues in choosing where to do
  business
• Workforce quality
• Labor costs (including wages, Healthcare, Workers
  Comp.)
• Taxes
• Regulation
• Infrastructure
• Quality of Life
• Political Environment
• Source CEO Magazine, March 2006

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Geographic Migration of Projects in U.S.
1 State in the Region for Growth based on of
total projects
1 Massachusetts
1 Pennsylvania
1 Ohio
1 Minnesota
1 North Carolina
1 Alabama
1 Tennessee
1 Texas
1 Arizona
1 Washington
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Geographic Migration of Projects in U.S.
Source Conway Data Inc.s New Plant
Database/Site Selection On-line, March 2006
Other facilities includes offices, headquarters,
distribution centers, RD, mixed use facilities
hotels
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Manufacturing Drivers

• NAM Survey (March 2006)
• One in two manufacturers plans to increase
  employment in 2006
• 47 will hire skilled workers for production jobs
• In terms of site selection, manufacturing
  companies globally are also paying more attention
  to
• Proximity to institutions of higher learning
• Customized training programs
• Availability of incentives
• Keeping workers up to speed with the latest
  technologies

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Mapping Macomb Attributes

• 1.) Skilled Workforce/Resources, 2.)
  Infrastructure 3.) Business Environment and 4.)
  Government Support

Focus Opportunities
Development Initiatives
Branding Initiatives
Differentiator
Cost of labor
Skilled manufacturing talent
Specific manufacturing skills
Grants, funding, tax incentives
Partnerships with education
Regional Resources
Low taxes
Ability to attract scientists
engineers/research universities
County economic health
Geographic proximity to customers, markets,
suppliers
Strong Automotive Image
Media Attention
Recognized business industry champion
Training to meet needs
Availability of land/bldgs
Technology transfer
Utilities cost capacity
Govt willing to collaborate/work with business
Avg. educational Levels
Coordination with regional partner/collaboration
Ability to attract retain youthful population
Strong work ethic
Significant Customer Segments (TACOM, Defense)
Dedicated funding for economic development
Importance to Site Selection
Population gain
Zoning Vision
Quality of life (housing, low cost of living, low
crime)
Presence of small support businesses
Evaluation of new markets, opportunities
Progressive culture outlook/understanding
Local competition
Strong support for start-ups/small business
Pursuit of funding for training, growth
Parity
Longevity of residents
Racial/religious diversity
Targeted Marketing
Eliminating hurdles
Macomb Attribute
Perceived Weakness
Perceived Strength
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Targeted Industries Study
Vision Synergies in Growth
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Projected Growth Emerging Sectors
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Regional Resources in Macomb
Macomb employment in each sector as a of 8
county region sector employment

• Macomb is
• 14 of total employment in the 8 county region
• 16 of total employment in the 8 county region
  Technology Cluster

Source 2003 County Business Patterns, U.S.
Census Bureau/Anderson Economic Group, Automation
Alleys First Annual Technology Industry Report,
2005
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(No Transcript)
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Macomb contribution to the 8 County Region
Technology Cluster 23

• 2003 survey of U.S. manufacturing employers found
  that 80 of respondents said that they had a
  serious problem finding qualified candidates for
  the highly technical world of modern
  manufacturing
  (National Association
  of Manufacturing)

Sources www.doleta.gov/BRG
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Advanced manufacturing technologies (AMTs)
involve new manufacturing techniques and machines
combined with the application of information
technology, micro electronics and new
organizational practices within the manufacturing
sector.

• Flexible manufacturing cells or systems
• Robotics
• High-speed machining
• Supervisory control and data acquisition (SCADA)
• Automated sensor-based inspection/testing systems
  
• Automated vision systems
• Lasers used in material processing
• Distributed control systems
• Rapid prototyping systems
• Computer-aided design/engineering software
  (CAD/CAE)
• Programmable logic controllers (PLCs)
• Use of inspection data in manufacturing control
• MRP or Enterprise Resource Planning (ERP)
  software
• Automated parts identification (i.e. bar coding)
• Modeling or simulation techniques

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Advanced Manufacturing Employment 2003
Advanced Manufacturing employment in Macomb -
distribution within sector (compared to Michigan)
40 of employment in this cluster is machinery
manufacturing
Source 2003 County Business Patterns, U.S.
Census Bureau/Anderson Economic Group, Automation
Alleys First Annual Technology Industry Report,
2005
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Machinery Equipment Industry
Business Location Drivers

• Rising shipping costs, particularly for sectors
  that must transport massive machines, will see
  many firms investing in plants closer to the
  customer
• Finding the right work force will play an equally
  important role
• Factories now need highly trained workers
  decisions could hinge on a state of localitys
  commitment to work force training
• New York State and St. Louis region are two areas
  that have made a significant commitment to the
  type of technical workforce training initiatives
  that machining and equipment manufacturing firms
  will need n the 21st center

Sources www.siteselection.com, On the Rebound,
March 2005
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Advanced Automotive has been identified as the
new sector, defining an industry not by what is
made but how it is made. This new advanced
automotive sector is defined by hundreds of
advanced technology initiatives in energy, safety
and materials that improve vehicle quality,
safety and extend longevity.

• Pinpointed as one of the Presidents High Growth
  Employment Industries
• Employment is expected to grow more rapidly in
  firms that manufacture motor vehicle parts,
  bodies and trailers than in firms that make
  complete vehicles
• Creates 6.6 million direct and spin-off jobs.
  For every worker directly employed by an
  automaker, nearly 7 spin-off jobs are created

Macomb contribution to the 8 County Region
Technology Cluster 19
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• Body Exterior
• Lightweight materials, Unit body construction
• Paint/Coatings/Adhesives
• Lighting
• Power train
• Enhanced fuel economy Fuel cell, Hybrid
  electric, Hydrogen fueled
• Advanced batteries, Emissions control
• Ride handling
• Brake Gas
• Low rolling resistance tires
• Safety systems
• Sensing systems
• Safety features
• Interiors
• Seating

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Advanced Technologies Market Penetration 2004 -
2030

• Market penetration of advanced technologies
• Lightweight materials Improved pumps
• Improved aerodynamics Low rolling resistance
  tires
• Engine friction reduction
• Unit body construction

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Homeland Security Michigan

• Majority of homeland security is performed in the
  private sector, with 85 of all critical
  infrastructures privately controlled 35 of all
  U.S. companies plan to invest in and expand
  security programs (ASIS International Foundation
  Trends Report, 2005)
• Approximately 33 billion of federal funding in
  FY 2005 with heavy emphasis on developing new
  technology to assist the four main parts of
  effective preparedness
• Prevention Biometrics, vaccines, intelligent
  systems, cargo screening systems
• Detection Bio and radiation sensors, training
• Reaction EMS equipment, communications, computer
  modeling
• Recovery Bioremediation, decontamination

Source www.michigan.org/medc/ttc/HomelandSecurit
y/
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• Michigan companies already play a lead role in
  development and production of equipment and
  expertise improved body armor producers,
  concrete strengthening systems, portable tracking
  and communications systems and advanced detection
  systems
• Strong RD and manufacturing capabilities make
  Michigan a natural leader in emerging areas
• Technology
• Information analysis and infrastructure
  protection
• Emergency preparedness and response
• Threat assessment tools and strategies

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Defense Industry TACOM
Number of Contracts Awarded by State
Contract Types Awarded to Michigan Companies
from 09/04 - 03/06
Source TACOM LCMC Advanced Planning Briefing to
Industry Tacom2005.ppt - 26-28 Oct 05
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Defense Industry TACOM
Percentage of Total Dollars by Contract Type
Awarded to Michigan Companies from 09/04 - 03/06
Source TACOM LCMC Advanced Planning Briefing to
Industry Tacom2005.ppt - 26-28 Oct 05
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Targeted Industries Study
Macomb County Opportunities
Whats next?
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Industry Expansion and Targeting
Strong Industry Potential
High Support Industries to Develop

Strong Industry Differentiation
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Trends in Economic Development Strategy
Targeted Industries Study
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Economic Development Survey 2004 2005

• Focus of economic development activities
• Business attraction/recruitment 44
• Business retention 41
• Top business retention activities
• Partnering with other non-governmental
  organizations 81
• Local government representative calls on local
  company 78
• Top promotional activities used to attract
  business
• Website 86
• Working with Chamber of Commerce 84
• Offer high quality of life 74
• Promotional and advertising activities 63
• Average local budgets for economic development in
  2004 753,161

Source ICMA. Economic Development 2004
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Common Characteristics of Winning Organizations
in attracting business

• Every winning agency used a state of the art
  Web-site
• On-line databases of available buildings and
  sites
• Work-force training initiatives moved to the top
  of the to do list
• The ability to quantify and deliver a trained
  work force in specialized skill-set categories
• Partnerships The ability to bring together
  diverse groups under one effort to market and
  promote a geographical area won more projects
  than stand-alone cities and counties

Without the region as a whole, we wouldnt be
where we are today. Creating new jobs and
investing capital investment in our community
takes a cooperative effort on behalf of local
governments, businesses and citizens. Melanie
OConnell Underwood Executive Director/Mooresville
, NC Chamber (2005 302m/1,125 jobs)
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Top U.S. Economic Growth Areas 2005
Source Site Selection On-line, March 2006
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Industry Retention Expansion, Growth
Targeting

• Macomb Countys Opportunities