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Economic Development Matters Blog

The Columbus2020!

A Safe, Prosperous Place

February 27th, 2012 by Kenny McDonald

This past weekend has seen yet more bloodshed in Afghanistan and the killing of two senior U.S. officials in what was supposed to be a very protected location. This is an abrupt reminder that the U.S. is still at war in Afghanistan and that we still have troops all over the world protecting and defending the United States of America.

Over $4 billion has been spent on the wars in the Middle East over the past 10 years, and the loss of life also continues to grow. Each loss is a tremendous consequence to military families and their communities and is nothing short of devastating. From an economic development perspective, the loss of motivated, young, skilled people is also damaging. The soldiers that have been lost and the many thousands of soldiers that have suffered physical and mental injuries have lost the flexibility to work in many jobs.

Remarkable programs and the resounding spirit of many of the soldiers have produced tremendous success stories, but too many of our returning military will not be able to reenter the workforce and be productive because of their injuries.

To me there is extra motivation to build a growing, healthy economy that those risking their lives to protect and defend our country can return to. President Obama recently announced a program to hire thousands of veterans as first responders, and a number of major corporations, including the Columbus Region’s largest employer – JPMorgan Chase. JP Morgan Chase has launched a program to hire thousands of transitioning service members. It is perhaps exponentially important that these brave men and women have a place to return to that is safe, prosperous, and competitive. It is part of what they are fighting for…

Columbus 2020 Update
Congrats to Westerville on the announcement of 350 additional jobs from JP Morgan Chase this past week, and to the Columbus Chamber of Commerce for a spirited annual meeting. Our team is returning from a very successful mission to create awareness of the Columbus Region in the Pacific Northwest. Our team is working with nearly 100 companies (both existing and new to our Region) as they consider expansion within the 11-county area. Let’s keep up the great work.

Do not hesitate to contact our team with any questions regarding our economy, our program, or if we can be of direct service to you or your company.

Kenny McDonald

A Valuable Contribution

February 20th, 2012 by Kenny McDonald

I am very fortunate to lead a team of economic development professionals and interact with peers statewide, nationally and internationally. These professionals come from different backgrounds and often work on very different pieces of the economic development system (community development, workforce training, business attraction, financing, etc.).  They are knowledgeable, motivated, and they truly enjoy helping to move their economies forward. 

Connecting people may be their most valuable contribution to their communities, however, it could be connecting a job seeker with a training program. It could be connecting a start-up company with a potential customer, or it could be connecting industry association officials with policy makers to discuss legislation. People that get things done are an economic developer’s most valuable asset, and they make a valuable contribution by using their networks to move things through an often confusing system of programs and processes. 

They must nurture their “rolodex” with care and feed it regularly. Our computers, phones and other devices are full of these contacts, and social media has exploded our ability to track and follow where and what people are doing (sometimes a little too much). All of this technology does not replace the need to touch your network regularly and with care – but it can enhance it if used properly. To this end, we remind you to reach out to an old friend, business associate or company you’ve not talked to in a while this week. Let’s see what happens… 

We also invite you to join our network and to stay in touch by following the team and me on twitter, @CBUSRegion and @KennyMcDon, and LinkedIn.

Columbus 2020 Update
Our team will be in the Pacific Northwest this week and was in New York last night at the Columbus Blue Jackets / New York Rangers game entertaining clients. Thanks to the Blue Jackets for all of their support! Congratulations to the City of Columbus and all of the great organizations, volunteers and people behind the scenes that made last week’s celebration of Columbus’s 200th birthday such a great success – more to come throughout 2012! 

Many of you have received a note I sent last week as an update of some great progress we’re making, but in case you missed it:

We have experienced some technical difficulties this week, so this message is coming later than I had planned. However, we’ve had a great week in the Columbus Region and I wanted to provide you with some insight into what your investment and engagement in the Columbus2020 regional growth strategy are doing to impact this Region. In short – A LOT. 

Yesterday in Obetz one of the fastest growing companies in the U.S., Zulily, announced that they were well on their way to create hundreds of jobs and expand their company. Within eight short weeks they have brought their logistics facility to Obetz and more than 200 people are employed by this e-commerce company with the promise that over 500 new jobs will be in the Region within three years. Their CEO, Darrell Cavens, and Governor John Kasich cut the ribbon on their facility among cheering employees, many of which had been out of work before this opportunity arrived. The City of Obetz, JobsOhio, and our entire Region should be proud of this announcement.

Tuesday, Japanese automotive supplier Yachiyo, announced their expansion in Marion. Yachiyo now employs over 200 people in our Region and is a great example of the impact that Honda and their supply chain continues to have in our Region.

Today, Cabella’s announced that they will build an 80,000-square-foot store in Delaware County (their first in Ohio). Cabella’s is a retailer that generates a lot of activity and is a coveted win – it is sure to become a state destination.

Monday we released the Columbus Region’s 4th Quarter Economic Report and our January 2012 Monthly Update. I think you will find that the report is balanced and provides a number of different angles from which to look at our economy. A few notes, our unemployment rate continues to move lower, which is good news, but there are still too many talented people out of work or underemployed. Our assessment: Things are getting better, but there are roadblocks ahead. This was the subject of this week’s blog post. Please see here the latest Economic Development Matters blog posts that did not go out due to technical issues. We apologize and hope that you will find time to read these updates each Monday.

Finally, we hope that you will make time to come to our March 8th Q1 Investor Update. We will have Rich Frederick, who is leading Governor Kasich’s team to revamp our workforce development/training system statewide. It promises to be an insightful presentation and a subject that is at the heart of the Columbus Region’s economic development success. Registration here. Hope to see you there!

-Kenny McDonald

 

Getting Better – Roadblocks Ahead

February 13th, 2012 by Kenny McDonald

 

This week Columbus2020 will release a report that looks back at the 4th quarter of 2011 and provides a list of projects that were announced in the Columbus Region this past year.  Over 150 companies announced they plan to expand within or to the Columbus Region, and many more quietly invested without any public record of it. Healthcare institutions in our Region continued to work on over $2 billion of advanced medical care facilities. The most recent national jobs report was the most positive in quite some time, topping relatively low expectations, but nonetheless positive. Urban Meyer signed several of the top recruits in the country…

Our economic development team, and many of its national peers, are seeing more companies move forward with capital projects, visiting communities and investigating opportunities to expand. There are even whispers of build-to-suit activity in the commercial real estate world – a very rare thing in the past four years. This means that many of the buildings best suited for modern logistics and manufacturing are now taken, and it may be required for companies to construct new buildings to fill their expansion needs.

However, the roadblocks are ominous. The national unemployment rate, and that of the Columbus Region, continues to fall, but the long-term unemployment and under-employment rates remain very (too) high. Healthcare administrators are under great stress as they plan for the future, and housing still – well – stinks. Most economic developers feel that the second half of 2012 may come to a standstill to await the outcome of the 2012 elections.  This is fairly typical, but could be painful for an economy trying desperately to recover. Continued unrest and sabre rattling in the Middle East impacts supply chain and risk managers who are often central to new facility planning.

Our message is this – a lot of hard work in the Columbus Region and all over this country at a state and local level is paying off. The recession has challenged many and made us stronger in many ways. Sacred cows have been tossed aside for new models and we will ultimately be stronger for it. However, we face continued challenges and will have to keep up the hard work, continue to challenge the status quo, and move our communities, companies, and country forward.

Columbus2020 Update
Columbus2020 will issue two reports this week. The first report will detail the 4th quarter of 2011 while the second provides a snapshot of our activities in January 2012. As you will see, our team got off to a quick start this year. We are logging new projects into the pipeline, continuing outreach to local business and working to create the JobsOhio Network within the State of Ohio. We recently met with our Central Ohio delegation to keep them abreast of the many positive ways in which our Region is forging ahead.  This week our team is traveling to New York and preparing for a pacific northwest mission next week.

The United Marketplace of America

February 6th, 2012 by Kenny McDonald

“Our supply chain is a weapon of mass competition,” Matt Rose, BNSF Railway

There are many things that united America, the pursuit of freedoms, common enemies, the bill of rights, declaration of independence, and the U.S. constitution. Another is the country’s incredible infrastructure – the transcontinental railroad, the interstate system, our air traffic control system, the electrical grids and natural gas pipelines, and today’s modern telecommunications and digital infrastructure to push bits and bytes throughout the marketplace.

Parts of this infrastructure are decaying and in need of repair or worse yet, are obsolete. However, America’s infrastructure is still the envy of the world for its sure breadth and how it has created a united marketplace for global goods with common standards and rules of commerce. I will emphasize that it is not perfect, and other markets are catching up or surpassing the U.S. in individual areas. China’s high speed trains are enviable, Europe’s public transportation system is quite impressive, and – get ready – Estonia leads the world’s countries in download speeds.

Each piece of this infrastructure needs investment, and in some cases massive investment, if we are to continue to present to the world one united marketplace. Record levels of investment are happening in some areas. According to the Association of American Railroads over $20 billion was invested in 2011 alone. Investments by CSX and Norfolk Southern in Ohio are great examples of how this is having an impact. Likewise, our metropolitan public transportation systems are changing, brought on by demand, demographic changes, technology that reduces the cost of implementation, and environmental advantages for metros that invest in these areas.

Transportation investment is directly related to economic development success for our country and our Region, and while budget realities and competing priorities are obstacles to traditional investment they can also be a trigger for creative solutions. Let’s choose the latter and create an enduring advantage for future generations.

Columbus2020
This week the Columbus2020 team will be participating in the Jones Lang LaSalle Academy in Phoenix and will meet with a few Phoenix based companies. The team will also travel to New York City for an internationally based trip to meet with a number of consulate’s offices and trade associations, in part to prepare for our India and China missions.

Kenny McDonald
Chief Economic Officer