Competitive Capacity Assessment: January 19, 2011
Competitive Capacity Assessment: January 19, 2011
Competitive Capacity Assessment: January 19, 2011
Agenda
Economic context Market Street Services Capital Crossroads process Competitive Capacity Assessment Next Steps
Economic Context
8.35 million
By January 2010, 14.8 million were unemployed and 9.3 million were working part time, wanting full-time work.
The 2000s
This was the first business cycle where a working-age household ended up worse at the end of it than the beginning, and this in spite of substantial growth in productivity, which should have been able to improve everyone's well-being.
Lawrence Mishel Economic Policy Institute Washington Post January 2, 2010
end of the recession. That number has since climbed to 4 in 10, the highest since the measure's creation in 1948.
3. The civilian labor force shrunk by 1.5 million people - a record since World War II. 4. Total loans at FDIC banks dropped 7.4 percent in 2009 - the largest drop in 67
years.
5. The Standard & Poors Index (including dividends) from 2000 through 2009 was -
in the great recession. That number is five times its share compared to the 2001 recession.
9. Household debt has declined 3.8 percent from its peak in July 2008 through October
23.5%
Q1'07 Q4'09
Families in Need
PercentageofHouseholdsReceivingFoodStamps
Source:FoodandDrugAdministration; Moody'sEconomy.com 18% 16% 14% 12% 10% 8% 6% 4% 2% 0%
KeyDates: 1990 MickeyLelandDomesticHungerReliefActgreatlyexpandsbenefits. 1997 Welfarereform;introduction ofTANFleadstorestrictionsonaccessandbenefits. 2002 Food SecurityandRuralInvestmentActreapprovesrestoreseligibility limitedin1997. 2005 Spikeinfood stampreceipients duetoHurricanesKatrinaandRita.
100
80
52.5
60
40
20
0
Jan Mar May Jul Sept Nov Jan Mar May Jul Sept Nov Jan Mar May July Sept Nov Jan Mar May July Sept Nov 2007 2008 2009 2010
The consumer confidence index from a survey of 5,000 U.S. households. Seasonally adjusted: 1985=100 Source: The Conference Board
9.8% 6.6%
Austin, TX Nashville and Memphis, TN Birmingham, AL St. Louis, Springfield, and Jefferson City, MO Tulsa, OK Little Rock, AR Sioux Falls, SD Coachella Valley, CA Greenville, SC Metro Atlanta: Carroll, Clayton, Cobb, Henry, Forsyth, & Gwinnett Counties
Visioning Process
Scope of Work
People, Prosperity & Place
Economic and Demographic Snapshot
Competitive Capacity Assessment Stakeholder Input Steering Committee Target Cluster and Marketing Analysis
Des Moines MSA Ames MSA Newton MiSA Pella MiSA Marshalltown MiSA Boone Misa
Comparison metros
Denver, Omaha, Madison
Implementation Action Plan
Scope of Work
Stakeholder Input
Economic and Demographic Snapshot
Competitive Capacity Assessment Stakeholder Input Steering Committee Target Cluster and Marketing Analysis
Online survey
General survey:
Project Advisors Dr. Jesse L. White Amy Holloway Next Generation Consulting
Analyzes Greater Des Moines and Central Iowas competitiveness as a place for business and talent
People, Prosperity, Place Research indicators reflect those from a typical site selection process
What issues, challenges, constraints and opportunities affect your community product? Public input informs and supports the quantitative research
Confirms existing and analyzes emerging targets Recommends key targets for Greater Des Moines to pursue
Based on the Capital Crossroads regions corporate and research strengths, workforce capacity, wealth-creation potential and national industry trends
Focus is on taking community to the next level of competitiveness Culmination of all prior research components Recommendation of goals, objectives, and action steps to prioritize future Greater Des Moines and Central Iowa investments for the coming five-year period References best practices and provides benchmarks and performance measures
Implementation Plan
Key questions
How can the Capital Crossroads regions growth be most sustainable? What will that growth look like, and where/how will it be focused? How big is too big? Is there such a thing as too big? How can the Capital Crossroads area grow, but retain the qualities that
people cherish about the region? What employment sectors will drive the regional economy and how can they best be supported? Does the regional training pipeline effectively prepare students and adults for locally available, high-value jobs? What could be the transformative projects/efforts that really move the region forward in the coming years? How can quality of life continue to play a key role in the regions growth? Can it be enhanced even more?
PEOPLE:
Talent development & socioeconomics
Stakeholders would like to see more charter schools and career academies but are discouraged by state policy and regional parochialism
Higher education: Extremely competitive capacity, which continues to grow can be better leveraged for talent retention
Very high college students per capita, with the highest percentage increase in enrollment among the comparison MSAs
ISU one of the nations top agriculturally-focused research institutions
All of the regions colleges and universities are well regarded by residents, with Drake University achieving the highest ratings among survey respondents Question of how students can be better connected to job opportunities
Workforce development resources: Multiple resources but reported lack of awareness of certain programs
RWIB trying to recover from scandal involving predecessor agency Central IA Works created to fill void coordinate cluster councils DMACC a key asset but some programs are space-constrained
Age Pipeline
Population Young Approaching Professionals Retirement Population 89 102 59 81 96 106 82 77 81 114
Migration Trends
LFPR LFPR LongTermNet ShortTermNet (Ages62+) (Ages2534) Migration Migration 23 52 13 15 21 16 99 139 20 55 93 284 105 117 173 72 291 142 160 165
People: Socio-economics
Iowa
United States
PEOPLE:Snapshotdata
Poverty
2009totalpovertyrate Rank
15.0% 2
17.1% 4
11.0% 1
15.0% 2
15.7% 3
20.0% 5
PerCapitaIncome
2008PerCapitaIncome Rank
$42,506 4
PerCapitaIncomeGrowth
%,200508 Rank
10.87% 6
11.01% 5
12.05% 4
12.17% 3
16.02% 1
13.39% 2
EducationalAttainment
%ofadultsw/anBachelor'sdegreeorhigher,2009
Rank
33.8% 3
37.6% 2
41.0% 1
31.8% 4
25.1% 6
27.9% 5
PROSPERITY:
Economic performance and structure, business climate, and entrepreneurship and innovation
PROSPERITY:Snapshotdata
Employment
5yearchange,Q12005Q12010 Rank
4.16% 1
0.23% 3
1.05% 5
0.96% 2
0.39% 4
2.58% 6
Wages
Averageannualwage,2009 Rank
$44,073 3
$51,733 1
$42,861 4
$40,555 5
$37,158 6
$45,559 2
WageGrowth
%,20052009 Rank
10.85% 6
12.61% 1
12.17% 3
11.63% 5
12.36% 2
12.00% 4
WorkerProductivity
OutputperWorker,2008 Rank
BusinessBankruptcies
Rateper1,000Establishments,Q12010 Rank
5.4 3
10.6 6
5.8 4
5.3 2
3.8 1
6.8 5
BusinessSector
TotalPrivate
Total 332,335 44,991 49,127 20,992 15,985 6,472 5,528 5,738 2,044 19,973 4,649 10,549 28,322 9,907 45,712 14,237 34,244
LQ 1.00 0.88 2.79 0.95 0.67 0.81 0.93 1.06 0.65 1.16 0.77 0.85 0.83 1.14 1.01 0.86 0.94
Change(#) 2,922 6,586 4,262 3,401 1,573 1,105 700 638 508 (105) (321) (742) (756) (1,110) (2,145) (5,043) (5,844)
1% 17% 9% 19% 11% 21% 14% 13% 33% 1% 6% 7% 3% 10% 4% 26% 15%
5YearJobGrowth Healthcareandsocialassistance Financeandinsurance Administrativeandwasteservices Professionalandtechnicalservices Educationalservices Managementofcompaniesandenterprises Arts,entertainment,andrecreation Agriculture,forestry,fishingandhunting 5YearJobLoss Wholesaletrade Realestateandrentalandleasing Transportationandwarehousing Accommodationandfoodservices Information Retailtrade Construction Manufacturing
Change (%)
Prosperity:
Business Climate & Small Business Development
Taxes: Perception of Iowas tax environment as anticompetitive
Ranked 5th worst in U.S. by Tax Foundations 2011 State Bus. Tax Climate Index. $1 million commercial building will be assessed $46,781 in property taxes in Des Moines vs. $21,343 in Omaha, $20,570 in Madison, and $5,185 in Denver. Net tax expenditures minus credits and federal withholding are less restrictive
Competitive retail and office lease rates, but a glut of inventory
be optimized
High per capita small business loan amounts but no prominent go-to resource for people looking to start or grow a small business. Need for an enterprise development support system Despite improvement, ISUs IP and Conflict of Interest policies limit research and commercialization efforts
PLACE:
Quality of life, infrastructure, arts and culture, and community capacity
Place: Summary
DesMoines, Denver, Madison, IA CO WI Omaha, NE Iowa United States
PLACE:Snapshotdata
CostofLiving
Cost of living key selling point Favorable housing appreciation trends Rental market is comparatively affordable, but many residents still pay >30% of their income on rent
C2ERIndex(US=100),3Q2010 Rank
90.0 2
103.9 4
109.8 5
89.5 1
n/a
100.0 3
HomePrices
Mediansalepriceofsinglefamilyhomes,2Q2010
Rank
$173,178 3
RentalHousingCost
MedianRent
Rank
$619 3
$778 6
$731 5
$611 2
$496 1
$702 4
HealthCareCapacity
Physiciansper100Kresidents,2010 Rank
227.5 4
238.9 3
334.7 1
242.3 2
175.3 6
220.5 5
WellBeingIndex
OverallWellBeingRankingof185metros Rank
30 1
52 3
33 2
73 4
n/a
n/a
CrimeRates
CombinedPropertyandViolentCrimeRankingof 332metros Rank
200 2
168 3
277 1
119 4
n/a
n/a
Philanthropy
NonprofitOrganizationrevenuepercapita,2010
Rank
$11,685 1
$4,627 6
$11,109 2
$8,307 3
$5,408 5
$5,587 4
Place: Summary
DesMoines, Denver, Madison, IA CO WI Omaha, NE Iowa United States
Lower number of doctors per capita Lowest average cost per doctor visit compared to Omaha, Madison, and Denver Health and wellness poised to become a major initiative in the region
PLACE:Snapshotdata
CostofLiving
C2ERIndex(US=100),3Q2010 Rank
90.0 2
103.9 4
109.8 5
89.5 1
n/a
100.0 3
HomePrices
Mediansalepriceofsinglefamilyhomes,2Q2010
Rank
$173,178 3
RentalHousingCost
MedianRent
Rank
$619 3
$778 6
$731 5
$611 2
$496 1
$702 4
HealthCareCapacity
Physiciansper100Kresidents,2010 Rank
227.5 4
238.9 3
334.7 1
242.3 2
175.3 6
220.5 5
WellBeingIndex
OverallWellBeingRankingof185metros Rank
30 1
52 3
33 2
73 4
n/a
n/a
CrimeRates
CombinedPropertyandViolentCrimeRankingof 332metros Rank
200 2
168 3
277 1
119 4
n/a
n/a
Philanthropy
NonprofitOrganizationrevenuepercapita,2010
Rank
$11,685 1
$4,627 6
$11,109 2
$8,307 3
$5,408 5
$5,587 4
Place: Summary
DesMoines, Denver, Madison, IA CO WI Omaha, NE Iowa United States
Metro crime rates are very low However, the City of Des Moines combined property and violent crime rates ranked higher than all the comparison cities Strong philanthropic and civic capacities
PLACE:Snapshotdata
CostofLiving
C2ERIndex(US=100),3Q2010 Rank
90.0 2
103.9 4
109.8 5
89.5 1
n/a
100.0 3
HomePrices
Mediansalepriceofsinglefamilyhomes,2Q2010
Rank
$173,178 3
RentalHousingCost
MedianRent
Rank
$619 3
$778 6
$731 5
$611 2
$496 1
$702 4
HealthCareCapacity
Physiciansper100Kresidents,2010 Rank
227.5 4
238.9 3
334.7 1
242.3 2
175.3 6
220.5 5
WellBeingIndex
OverallWellBeingRankingof185metros Rank
30 1
52 3
33 2
73 4
n/a
n/a
CrimeRates
CombinedPropertyandViolentCrimeRankingof 332metros Rank
200 2
168 3
277 1
119 4
n/a
n/a
Philanthropy
NonprofitOrganizationrevenuepercapita,2010
Rank
$11,685 1
$4,627 6
$11,109 2
$8,307 3
$5,408 5
$5,587 4
Place:
Infrastructure
Public transit
Many input respondents want to see more capacity but lack of population density is a challenge
Place:
Livability and Civic Capacity
Billions invested in Downtown Des Moines helping with talent attraction/retention Miles of bike/walking trails developed next stage is to close gaps and connect
A ns we r Op tio ns Likelihood you will continue to live in the community Likelihood you will raise children in the community Likelihood your children (once grown) will choose to live in the community Likelihood you will retire in the community
Community Climate
A ns we r Op tio ns New members of the community are welcomed The community values persons of diverse races, ethnicities, faiths, and sexual Young professionals are actively engaged in leadership There are opportunities to volunteer your time for worthy causes The public's opinions are valued by government Healthy, active lifestyles are encouraged and supported Stro ng ly A g re e 17.9% 10.7% 13.5% 43.5% 5.8% 15.1% A g re e 54.9% 46.6% 51.7% 48.8% 32.0% 54.8%
D is a g re e
Top Opportunity
Rank 1 2 3 4 5 6 7 8 9 10
Response Qualityoflife Qualityofeducation Familyfriendly Costofliving Downtownrevitalization Workforce/workethic Outdoorrecreation/Biketrails Thepeople Lowcrimerate Artscene
scenic rural attractions that offers all people access to world class education, career employment opportunities in 21st Century industries while enjoying a very interesting and stimulating quality of life outside of the workplace.
I want to be able to brag about my city and how great it is to other young
people. I want to be able to say that, living in Des Moines, so many of the cultural opportunities I am interested in come right to my doorstep. I also want to be able to say that, no matter what your career goal, Des Moines has something to offer.
impressed with the forward thinking and planning that goes on and the resulting progress made. It is and should continue to be an ongoing cycle among Greater DSM and now Central Iowa that continually expands the discussion of what is possible along with what is attainable and doable next.
Some leaders do not realize they ARE leaders. There should be
mindfulness toward cultivating those who would normally not speak up, but may have the greatest impact if incorporated into this process.
Conclusion: Challenges
External perception of Greater Des Moines and Central Iowa Divergent economic/demographic/education trends in City of DM vs. region Potential over-concentration of finance and insurance employment Reportedly risk-averse attitudes preventing development of a culture of entrepreneurship in Greater Des Moines Lack of connectivity and go-to support entity for small business No formalized networking and support system for aspiring entrepreneurs Evolving but still restrictive tech transfer and commercialization at ISU
Conclusion: Challenges
Perceived tax inequities Above average airfares and a lack of direct flights at DSM Lack of critical mass of entertainment amenities and districts YPs often dont serve as ambassadors for Central Iowa Widening philanthropic gap as current leaders step aside Persistent parochialism that hamstrings regional efforts
Next Steps
Community Leadership Meeting #2
Presentation of the final Capital Crossroads Plan Tuesday, April 26, 2011 5:00-6:00 pm Documents will be posted on the project website:
http://www.capitalcrossroadsvision.com
Questions, comments?