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CONNECT SI
Greater Egypt COI Milestone 5
Benchmark Current Economy, Understand Future
Economy,
Establish Regional Economic
Priorities Tuesday, September 18 300pm
500pm John A. Logan College, Carterville, IL
ViTAL Economy Alliance Partners Frank Knott -
Fknottmd_at_earthlink.net Jim Haguewood.-
jim_at_onegroupconsulting.com Stan Halle
change1_at_mindspring.com Kathy Lively (Executive
Director) kathylively_at_mantracon.org
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Agenda Greater Egypt Milestone 5 Meeting

• 300 Welcome Connect SI Updates
• 305 COI Report on Milestone 4 Work Plan
• 325 Objectives of Milestone 5
• 330 Review of Connect SI and GE COI Goals
• 340 Presentation of VE Economic Scenario Model
• Review of Current GE Economic Mix
• 400 VE Strawman Milestone 5 Goals to get your
  started
• 420 Building the Future GE Economy
• 500 Wrap-up

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Report on GE Milestone 4 Work plan
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• Fully complete the industry and indigenous
  resource asset mapping
• Imagine the GE community in 2012 attracting new
  KBEs, etc.
• Describe its appearance, behavior, attitude,
  reputation
• Finally discovered things are really happening
  lots of entrepreneurs lets go see whats going
  on grads are staying good place to live great
  place to do business showing growth
  collaborative behavior across the region
• How does it differ from today?
• No more vacant offices satellite offices from
  major cities inter-modal system best in the
  mid-west more welcome signs around paw-prints
  all over Governor staying here more than
  Springfield more skilled, targeted workforce
• What will be the priority industry clusters for
  the GE region
• KBE (satellite offices aviation/automotive
  technologies) Logistics Distribution (branch
  offices) Energy (bio, crops, coal) Agriculture
  (organic, value-added agriculture, prepared
  foods) Tourism (wine industry, ) Manufacturing
  (experienced workforce), Coal Mining

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Report on GE Milestone 4 Work plan
?

• Identify the top five economic or community
  development opportunities for Greater Egypt
• Outsourcing/in-sourcing tied to KBE (leveraging
  our broadband infrastructure) Coal Mining
  Alternative Fuels (ethanol, energy projects)
  Transportation Education Training Center (Jackson
  County) Outdoor Recreation (Pyramid State Park,
  Rend Lake, etc. intensively linked together)
• Who are the other key industry leaders regionally
  that need to be involved and could benefit from
  these opportunities?
• David Coracy (Tourism packages) Healthcare COI
  (EMR opportunity) NP COI (bandwidth) Alegend
  Air at Mid-America Travel Agents (like YTB)
  Logistics companies University/Community
  Colleges (Dean Starvella) Aisin Group Southern
  Illinois Airport construction contractors
  farmers (bio-fuels) consumers, grain processors,
  grain storage (converted coal silos), farm
  implements
• What are the key innovation or incubation
  resources that exist or need to be in place in
  the GE region to support the opportunities?
• Current Assets strong EDC leaders, SIU/CC
  System, inexpensive land vacant buildings,
  Dunn-Richmond Center, West Frankfort Business
  Incubator second story of downtown buildings
  top automotive and aviation folks at the Univ.
• Needs venture capital mentoring system/network
  targeted workforce development new group

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Relationship Between Phases I and II
Phase II
Phase I
The Future Connect SI Strategy
Industry Cluster Teams
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Objectives of MS5

• Benchmark Current Economy
• Quantify your current economy by sector,
  employment, total wages and average wages
• Understand Future Economy
• Define your plan to diversify Greater Egypts
  future economy to achieve your COI goals
• Establish Regional Economic Priorities
• Identify industry sector and KBE priorities to
  meet these goals

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Connect SI  2012 Goals
All 20 Counties

• 27,298 New Hi-Wage Jobs
• 16,379 _at_ 43,500
• 10,919 _at_ 36,517 to 40,785
• Improve 41,461 existing jobs by 5,000/year
• 642M new KBE Activity 1,600 firms 16,000 jobs
• gt2B New Annual Wages
• 4,500 families with Healthcare coverage
• Lift 10,000 SI citizens out of poverty
• 200M New IT investment

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Greater Egypt Goal Setting Outcomes
NEW JOBS 10,468 WAGE 43,500
455.4m NEW JOBS AT AVERAGE WAGE 6,979
WAGE 40,765 284.5m IMPROVEMENT OF
EXISTING JOBS 26,937 WAGE 5,000
134.7m CLIMATE OF ECONOMIC OPPORTUNITY
538.4m
Jobs are the result of action plans related to
industry cluster and workforce development
strategies.
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Greater Egypt Supplemental Goals
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New Powerful Tool in the SI Economic Toolbox
ViTAL Economy Economic Scenario Model
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Greater Egypt Economic Mix- 2006
Source VE Economic Model, 2007
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ViTAL Economy Strawman Milestone 5 Goals
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VE CSI Strawman

• Assumptions
• Illinois tourism employment 4.4 (279,621) of
  total State employment
• SI total employment of 5,619 is 3.4 of total
  employment
• Increase SI tourism employment to 4.4 of
  current employment by 2012 9,121 Total Net
  3,502 new jobs

• Assumptions
• Development of two new distribution centers in
  five years at 275 employees each (range 150-400)

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VE CSI Strawman
Average Wage

• Assumptions
• 10 million workforce shortage by 2010 in the US
• August 2007 national employment 145.8M
• Illinois currently 4.3 of national employment
• SI employment is 3.2 of State
• If State went after 4.3 of shortfall 430,000
  
• Conservatively, if SI went for 3.2 of that
  13,760

Source
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VE CSI Strawman

• Assumptions
• 13,760 new job opportunities
• 41,461 citizens wages improved by 5,000/year
• 30 students per instructor

• Assumptions
• Construction sector is currently 6 of US
  economy
• SI currently 4 of the economy
• Projection based upon 5 of the economy

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VE CSI Strawman

• Assumptions
• 1,600 KBE firms 16,000 employees
  

Potential 4,800 business starts a year based
upon VE experience 33 success rate
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VE CSI Strawman

• Assumptions
• Industry growth in employment is offset somewhat
  by an increase in productivity
• None of the mega-projects underway in Southern
  Illinois are taken into account

• Assumptions
• Industry growth in employment is offset somewhat
  by an increase in productivity
• None of the mega-projects underway in Southern
  Illinois are taken into account

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VE CSI Strawman

• Assumptions
• 25,000 new high income seniors
• Attracted by quality-of-life beautiful SI
  setting
• 15,000 recently retired or near retirement (55)
• 5,000 using CCCR-type communities
• 5,000 in senior living apartments
• F.I.R.E. 6 continuation of new employment level

• National Ratios
• 3.4M seniors in 46,131 facilities 73
  seniors/property
  
• 50 - Assisted living
  
• 34 - Nursing facilities
  
• 7 - Independent living communities
  
• 4 - Continuing Care Retirement Communities
  
• 5 - Combination of all types
• Seniors 11,726 apartment complexes with 821,721
  units (approx 70 units/complex)

• Southern Illinois
• 25,000 5 population increase

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CSI-wide Strawman Roll-up
CSI-wide Milestone 1 Goals 16,379 new jobs at
43,500 10,919 new jobs between
36,517-40,785 Improve 41,461 existing jobs by
5,000/year 642M new KBE Activity 1,600
firms gt2B New Annual Wages
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GE Milestone 5 Goals
GE Milestone 1 Original Goals
These jobs figure represents only direct jobs.
Tourism, Education, Mining 20 Senior Living
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GE Discussion

• Informal Economy is really big here
• Negative impact (re lack of taxes, rules, etc.)
• We can take 2/3 of Tourism, Senior Living, KBE
• Missing Sectors?
• Rubber-technologies (e.g., CTNA)
• Transportation as a separate sector has its own
  unique challenges mass-transit is a part of this
• We need to look at whats out there just over the
  horizon

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GE COI Active Items, Assignments and Meeting Dates

• Development of the GE Speaker Bureau,
• Target groups
• Completion of MS5 work plan
• Action plan teams and leaders
• Next meeting, date, time location.
• Scheduled Leadership meetings? When, Where?

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CONNECT SI
Greater Egypt COI Milestone 5 BACKUP SLIDES
Benchmark Current Economy, Understand Future
Economy, Establish Regional Economic
Priorities Thursday September 20,
2007 300pm 500pm Man Tra Con Office, Marion,
IL
ViTAL Economy Alliance Partners Jim Haguewood -
jim_at_onegroupconsulting.com Stan Halle -
change1_at_mindspring.com Connect SI Staff Kathy
Lively (Executive Director) kathylively_at_mantraco
n.org
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Key Occupations above the average wage goal
14 out of 30 have a current average wage higher
than the GE 2012 average wage
Source The State of Working Illinois, 2005
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Job Training Projections for SI
Source The State of Working Illinois, 2005
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Healthcare Goals by COI

• 22 million in healthcare recapture
• 5 million in growth in services
• Critical skill shortage 5,000 healthcare jobs

Source Connect SI Healthcare COI
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CSI Goal Breakdown

• KBE Businesses

Total impact value/new average wage total
number of jobs/10 number of KBE firms
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What Path Do You Want SI to Follow?
By the end of 2005, the employment level in
Illinois was only 3 higher than in 1996, the RMW
has grown by 4 while the US economy expanded by
almost 12
An issue that is often raised is that the state
has the wrong structure, in terms of the
allocation of activity by major sectors. However,
it turns out that the stat and the nation have
very similar structure the problem appears to be
that on a sector-by-sector basis, Illinois
growth rates have been lower than those of the US.
RMW Rural Mid-West
Source The State of Working Illinois, 205
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KBE Direct Jobs Detail
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Southern Illinois as a Whole
2006 Constant Dollars
Source VE Economic Model, 2007
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