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©2008 ViTAL Economy, Inc. — 1 —
ViTAL Economy AllianceFrank Knott, Project Lead; Stan Halle, Senior Editor;
Jim Haguewood, Rob Beynon, & Neil Gamroth, Principal Economic Researchers
[email protected]; http://www.vitaleconomy.com
Southeastern COI:2008-2012 Strategic Roadmap
TBA, 2008TBA
Southern Illinois: Garden of the Gods
©2008 ViTAL Economy, Inc. — 2 —
COI Perspective: Southeastern
Sense of Urgency• We MUST stop the decline, we are
asleep at the wheel.
• Shock Value: “If you are going to be poor, this is the place to be!”
• What is our legacy going to be for our children? There is declining infrastructure, tax base declining, demographics getting worse
• WHAT CAN BE? We need to paint a compelling picture of the future
Sense of Urgency• We MUST stop the decline, we are
asleep at the wheel.
• Shock Value: “If you are going to be poor, this is the place to be!”
• What is our legacy going to be for our children? There is declining infrastructure, tax base declining, demographics getting worse
• WHAT CAN BE? We need to paint a compelling picture of the future
Challenges:• Get local gov’t officials involved • Reverse population decline• Increase tax revenue base• Increase average wage• Change age demographic• Increase incentives for broadband
penetration in the rural areas• Low awareness of ICT benefits• Create a more diversified economy• Overcome apathetic attitudes• Limited affordable housing
Opportunities:• Get county boards & city councils
engaged• Show local stakeholders that they
have a “VOICE”!• Further enhance working
relationships with other communities
• Become a positive place to live, work and play
• Promote area as an affordable place to live
• Challenge negative thinking• Promote and develop self-reliance
in our community• Foster entrepreneurship
Regional Economic Benchmarks
2004 2012
Population 49,454 56,000
Total Employed 21,903 25,500
Average Wage 27,494 40,276
Total Wages $602.2M $1,027B
SE COI2007-2012 Goals
2,158 New Jobs @$43,500
4,380 Existing JobsRaised by $5,000/Year
1,438 jobs at the new average wage
$40,276
34% Private Payer Healthcare %
$500M EAV Tax Base
Broadband Penetration Rate – 50%
$44,420,000 Tourism Expenditures
$180,000 Regional Room Tax Revenues
SE COI2007-2012 Goals
2,158 New Jobs @$43,500
4,380 Existing JobsRaised by $5,000/Year
1,438 jobs at the new average wage
$40,276
34% Private Payer Healthcare %
$500M EAV Tax Base
Broadband Penetration Rate – 50%
$44,420,000 Tourism Expenditures
$180,000 Regional Room Tax Revenues
See: RA Chapter 6
Is SI worth fighting for?Is SI worth fighting for?
©2008 ViTAL Economy, Inc. — 3 —
Regional AssetsRegional Assets
• Heartland of America location, equidistant to 2/3 of U.S. markets, central to economic expansion of the Americas
• SIU - a major R&D university with 60+ years history serving students from over 100 world cultures supports global KBE growth
• Robust education and training resources position SI for global workforce training opportunity
• Mild climate, unique natural environment, active lifestyle assets, arts and culture amenities, attractive quality of life characteristics are important factors for KBE, tourism and senior living growth
• Inter-modal logistics, transportation and distribution resources have a strong foundation in SI
• SI has plentiful legacy and alternative-energy assets. SI is a coal leader and is strong in 2 of 4 areas of projected alternative energy growth by 2030
• Heartland of America location, equidistant to 2/3 of U.S. markets, central to economic expansion of the Americas
• SIU - a major R&D university with 60+ years history serving students from over 100 world cultures supports global KBE growth
• Robust education and training resources position SI for global workforce training opportunity
• Mild climate, unique natural environment, active lifestyle assets, arts and culture amenities, attractive quality of life characteristics are important factors for KBE, tourism and senior living growth
• Inter-modal logistics, transportation and distribution resources have a strong foundation in SI
• SI has plentiful legacy and alternative-energy assets. SI is a coal leader and is strong in 2 of 4 areas of projected alternative energy growth by 2030
Connecting SI’s Assets and Trends to 2012 Goals
>$2 BillionNew Annual
Wages
>$2 BillionNew Annual
Wages
41,461 Existing Jobs>$5,000/Yr
41,461 Existing Jobs>$5,000/Yr
27,298 NewHi-Wage Jobs27,298 New
Hi-Wage Jobs
$642 MillionNew KBE Activity
1,600+ Firms
$642 MillionNew KBE Activity
1,600+ Firms
4,500+ Families with Healthcare
Coverage
4,500+ Families with Healthcare
Coverage
Lift 10,000 Citizens Out Of Poverty
Lift 10,000 Citizens Out Of Poverty
$200 Million Information Technology Investment
$200 Million Information Technology Investment
Global & Nat’l TrendsGlobal & Nat’l Trends
• Global growth presents SI with opportunity to accelerate its economic growth from 1.34% to 3.85% per year
• KBE activity now accounts for 50% plus of GDP growth, 3x’s growth in occupations and pays double the average wage of other jobs
• By 2010, the U.S. will have a 10M worker shortfall requiring strong workforce development resources
• 3 of 4 factors required to support KBE activity in rural America are SI strengths
• 58% of all U.S. and global tourists want authentic active, historic and cultural experiences (50-80 million)
• Logistics is a $900 billion U.S. industry in a global $3.43 trillion market growing at 10-15% per year
• 74% global increase in coal consumption, 138% in coal-to-liquid and 66% in bio-fuels by 2030
• Global growth presents SI with opportunity to accelerate its economic growth from 1.34% to 3.85% per year
• KBE activity now accounts for 50% plus of GDP growth, 3x’s growth in occupations and pays double the average wage of other jobs
• By 2010, the U.S. will have a 10M worker shortfall requiring strong workforce development resources
• 3 of 4 factors required to support KBE activity in rural America are SI strengths
• 58% of all U.S. and global tourists want authentic active, historic and cultural experiences (50-80 million)
• Logistics is a $900 billion U.S. industry in a global $3.43 trillion market growing at 10-15% per year
• 74% global increase in coal consumption, 138% in coal-to-liquid and 66% in bio-fuels by 2030
++ ==
CSI 2012 M/S1 Goals*
Note: Regional Assets (Chap 2); Trends (Chap 1); * Milestone #1 Connect SI Goals were announced to the Public 26 Feb 2007
Is SI worth fighting for?Is SI worth fighting for?
©2008 ViTAL Economy, Inc. — 4 —
Potential SI Jobsby Sector (1 of 2)
• Global growth opens up opportunities to expand SI economy beyond its traditional growth rate
• 10 million U.S. worker shortage is an opportunity for SI workforce development resources
• Growth in services exports enable SI to move away from uncompetitive legacy economic activities
• Global growth opens up opportunities to expand SI economy beyond its traditional growth rate
• 10 million U.S. worker shortage is an opportunity for SI workforce development resources
• Growth in services exports enable SI to move away from uncompetitive legacy economic activities
ICT investments contribute 33% to U.S. productivity
growth…this validates importance of NPCOI
SI’s 64% increase in broadband access can better
leverage six-fold increase in e-commerce activity
4 of 5** factors in rural KBE growth are SI strengths
— need to be leveraged for SI economic growth Livable community assets present in SI are an
attraction asset for KBE, Senior Living and Tourism Alternative energy, global warming and “greening”
of society is creating innovation opportunities
ICT investments contribute 33% to U.S. productivity
growth…this validates importance of NPCOI
SI’s 64% increase in broadband access can better
leverage six-fold increase in e-commerce activity
4 of 5** factors in rural KBE growth are SI strengths
— need to be leveraged for SI economic growth Livable community assets present in SI are an
attraction asset for KBE, Senior Living and Tourism Alternative energy, global warming and “greening”
of society is creating innovation opportunities
Global Workforce
Opportunities
18,750New Jobs
Global Workforce
Opportunities
18,750New Jobs
KBE
8,023New Jobs
KBE
8,023New Jobs
See: RA Chapter 1
**Five Factors are: • High Quality Workforce• College or Universities• Local Amenities• Transportation Infrastructure• Size
Is SI worth fighting for?Is SI worth fighting for?
©2008 ViTAL Economy, Inc. — 5 —
Potential SI Jobs by Sector (2 of 2)
Climate of Economic Opportunity = an additional 10,210 new jobsNEW GRAND TOTAL = 50,789 Jobs (vs. 27,298 Jobs Feb ‘07)
Climate of Economic Opportunity = an additional 10,210 new jobsNEW GRAND TOTAL = 50,789 Jobs (vs. 27,298 Jobs Feb ‘07)
See: RA Chapter 1
Senior Living
3,676New Jobs
Senior Living
3,676New Jobs
Energy & Mining5,680
New Jobs
Energy & Mining5,680
New Jobs
Tourism4,450
New Jobs
Tourism4,450
New Jobs
Log/Trans//Dist1,675
New Jobs
Log/Trans//Dist1,675
New Jobs
• 77 million retiring baby boomers present an affluent
senior living growth opportunity for SI
• 77 million retiring baby boomers present an affluent
senior living growth opportunity for SI
• Preferred tourism growth sectors indicate SI is
positioned for accelerated tourism growth
• Preferred tourism growth sectors indicate SI is
positioned for accelerated tourism growth
SI energy assets and knowledge are in the sweet spot of energy priorities for growth
SI energy assets and knowledge are in the sweet spot of energy priorities for growth
Significant transportation labor shortages are moving transportation and distribution centers from the coast to the center of North America. SI location and logistics assets position it for growth
Significant transportation labor shortages are moving transportation and distribution centers from the coast to the center of North America. SI location and logistics assets position it for growth
Is SI worth fighting for?Is SI worth fighting for?
©2008 ViTAL Economy, Inc. — 6 —
Leadership: the Key to Success
PEOPLE are the most important Connect SI asset who volunteer and commit their time, talent and treasure to achieve SI goals
o Selection: Choice of leaders should be based upon active participation in achieving the CSI Strategy — LAC, COI, cluster & action team leadership should include a mix of styles, connections and influence (see RA Chp. slides 29-30)
o Training: Volunteers should be rewarded with yearly education and self-improvement programs — provides ROI for participation; enhances leadership effectiveness; and improves strategic outcomes
o Support: Leadership is a volunteer effort that requires staff support to achieve desired results — CSI staff needs to proactively engage leaders and fill initiative gaps as identified
o Motivation: Volunteer leaders’ efforts are fueled by recognition of their impact and accomplishments — CSI must regularly highlight leadership and community progress toward goals and celebrate short-term wins
o Focus: CSI staff assist leaders in consistently reinforcing strategic direction, current status, and immediate tasks at hand — maintaining focus yields better results
CSI Leaders, volunteers & staff must function as true catalysts — stimulating the transformation of SI’s economy —
Is SI worth fighting for?Is SI worth fighting for?
©2008 ViTAL Economy, Inc. — 7 —
SI Vision 2012
Southern Illinois will: Be the fastest growing economic region in Illinois Be the regional gateway:
From America’s Heartland to the global economy From the global economy to America’s Heartland
Be named a national and regional model for collaborative, regional rural economic transformation
Achieve a positive balance between livability &
sustainable growth
Southern Illinois will: Be the fastest growing economic region in Illinois Be the regional gateway:
From America’s Heartland to the global economy From the global economy to America’s Heartland
Be named a national and regional model for collaborative, regional rural economic transformation
Achieve a positive balance between livability &
sustainable growth
What follows are four Goals to achieve this Vision and transform SI Each Goal has four Strategies (16 total)
Each Strategy has four Actions (64 total)
Is SI worth fighting for?Is SI worth fighting for?
©2008 ViTAL Economy, Inc. — 8 —
SI’s Transformation: Four Measurable Goals
GOAL #1: Transform SI Mindset and Behavior – Increase CSI champions and collaborative funding by 300% and build a climate of unlimited economic opportunity through creation of 1,600 KBE firms by 2012
GOAL #2: Transform SI Economic Performance – Increase SI GRP by $3.5 billion/year, its average annual growth rate from 1.34% to 3.85%, and its state and local tax revenues by $200M+ per year by 2012
GOAL #3: Transform the SI Enabling Environment – Create a collaborative regional culture of livable communities with planning and zoning standards; with global best practice broadband penetration; and reduce SI’s #1 ranking in 15 of 18 Illinois Poverty Summit indicators by 50% by 2012 (RA Chp. 1.05)
GOAL #4: Transform SI Leadership and Governance Frameworks – Realize “Crossing the Boundaries” vision of Connect SI by expanding the base of collaborative leaders by 500 persons and implementing regional collaborative governance frameworks to successfully fund, resource and manage a dynamic SI economy; accomplished by 2012
Is SI worth fighting for?Is SI worth fighting for?
©2008 ViTAL Economy, Inc. — 9 —
#1: Transform SI Mindset and Behavior
GOAL #1: Transform SI Mindset and Behavior – Increase CSI champions and collaborative funding by 300% and build a climate of unlimited economic opportunity by creating 1,600 KBE firms by 2012
STRATEGY 1A – Develop and implement a regionally-led collaborative funding strategy raising $1.8M+ per year through 2012 and achieve a 4:1 external leverage of regional investment by 2012 (RA Chp. 7.03, slides 28, 29)
STRATEGY 1B – Implement a community engagement strategy that mobilizes 3,000+ Connect SI community champions to support the CSI strategy
STRATEGY 1C – Launch a regional branding and communications strategy that embeds awareness and support of Connect SI across 20% of SI population by 12/31/2009 and 50% by end of 2010
STRATEGY 1D – Shift the focus of SI Community and Economic Development (CED) from declining legacy industries to high growth Knowledge-Based-Enterprise (KBE) innovation sectors by creating 16,000 KBE jobs by 2012, supported by implementation of an Integrated Finance Framework
Is SI worth fighting for?Is SI worth fighting for?
©2008 ViTAL Economy, Inc. — 10 —
#2: Transform SI Economic Performance
GOAL #2: Transform SI Economic Performance – Increase SI GRP by $3.5 billion/year, its average annual growth rate from 1.34% to 3.85%, and its state and local tax revenues by $200M+ per year by 2012
STRATEGY 2A – Create 16,379 new jobs at $43,500 by 2012, and an additional 10,919 new jobs from $36,517-$40,785 per year by 2012 — healthcare benefits are to be included with all new jobs
STRATEGY 2B – Improve 41,461 workers incomes by $5,000/year by 2012
STRATEGY 2C – Develop and implement an investment attraction strategy to increase SI global export value by $1Billion/year by 2012 (RA Chp. 5.01, 5.05)
STRATEGY 2D – Shift the ratio of private sector vs. public sector income in SI from 46:54 to U.S. ratio of 65:35 by 2012 to increase SI climate of risk taking and diversify income sources of SI economy (RA Chp. 7)
Is SI worth fighting for?Is SI worth fighting for?
©2008 ViTAL Economy, Inc. — 11 —
#3: Transform SI Enabling Environment
GOAL #3: Transform SI Enabling Environment – Create a collaborative regional culture of livable communities with planning and zoning standards; with global best practice broadband penetration; and reduce SI’s #1 ranking in 15 of 18 Illinois Poverty Summit indicators by 50%, by 2012 (RA Chp 1.05)
STRATEGY 3A – Define SI Livable Community Standards by end of 2009 that leverages the planning and design resources of SIU, UI and Urban Land Institute (RA Chp. 3.04)
STRATEGY 3B – Improve regional health outcomes by reducing cardiovascular disease mortality from 215 to 166 per 100,000 by 2012, a 23% reduction (RA Chp. 6.06)
STRATEGY 3C – Achieve a 54% global best practice broadband penetration rate in SI by 2012 and increase Network Providers revenues $45M/year by responding to industry cluster and regional COI connectivity requirements
STRATEGY 3D – Develop a collaborative education and training strategy across SI that achieves a 32% Associate Degree and 85% High School Diploma or higher to meet 2012 workforce requirements (RA Chp. 5.02)
Is SI worth fighting for?Is SI worth fighting for?
©2008 ViTAL Economy, Inc. — 12 —
#4: Transform SI Leadership and Governance Frameworks
GOAL #4: Transform SI Leadership and Governance Frameworks – Realize “Crossing Boundaries” vision of Connect SI by expanding the base of collaborative leaders by 500 persons and implementing regional collaborative governance frameworks to successfully fund, resource and manage a dynamic SI economy; accomplished by 2012
STRATEGY 4A – Create a “Crossing Boundaries Institute” focused on training and developing collaborative leaders to manage/drive a 21st century regional SI economy — exhibits 3C behaviors: Collaboration, Connectivity and Changed Spending
STRATEGY 4B – Establish a regional CED planning, strategy and data service for local communities as well as a benchmarking portal to measure SI progress in achieving Connect SI goals and improving SI innovation economy readiness relative to global best practice
STRATEGY 4C – Support, maintain and resource four regional COI’s, Healthcare COI, Network Provider COI, 12 industry cluster teams, and action plan implementation teams (RA Chapter 7.04 slides 27, 32)
STRATEGY 4D – Mobilize, connect and align non-profit community development and social service groups to create a collaborative approach to achieve the 2012 Connect SI CED growth goals
Is SI worth fighting for?Is SI worth fighting for?
©2008 ViTAL Economy, Inc. — 13 —
Phase 1 Outcomes
GIS Asset Maps
Broadband Strategy
Economic Benchmarks
Regional Economic Strategy
Healthcare Strategy
Regional EconomicFramework
Five-Year Measurable Goals
Implementation &Funding Plan
Phase 1 => Phase 2 => Goals
2012 Goals
Greater EgyptCOI
Southeastern COI
Southern Five COI
Greater Wabash COI
Healthcare COI
Network Provider COI
Connect SI Leadership
Board
COI Transition to Phase IICOI Transition to Phase II
Cluster
Cluster
Cluster
Cluster
Cluster
Cluster
Cluster
Cluster
Cluster
GE COI
SE COI
S5 COI
GW SOI
NP COI
Healthcare COI
Youth Engagement
Strategy
Phase II Structure and Strategy
LEADERSHIP BOARD
Integrated Finance Strategy
Innovation Ecosystem
Industry Cluster
Analysis and Strategy
CrossingBoundaries
Institute
Industry Clusters: See RA Chapter 7 Slide 27
>$2 BillionNew Annual
Wages
41,461 Existing Jobs
>$5,000/Yr
27,298 NewHi-Wage Jobs
$642 MillionNew KBE Activity
1,600+ Firms
+4500 Familieswith Healthcare
Coverage
Lift 10,000 Citizens Out Of Poverty
$200 Million Information Technology Investment
Is SI worth Fighting for?Is SI worth Fighting for?
©2008 ViTAL Economy, Inc. — 14 —
All new jobs created byIndustry Clusters will be
targeted to include private payer health benefits for
workers and families
All new jobs created byIndustry Clusters will be
targeted to include private payer health benefits for
workers and families
Phase 2 Industry Cluster Focus to Achieve SI Goals
Tourism Bio-Agriculture Knowledge Based Enterprises (KBE)
Healthcare Technology Products & Services Advanced Manufacturing Recreational, Marine, Hunting, Technology Products & Services Visual Creative & Performing Arts and Services International Incubation and Innovation Green Technologies Homeland Security Response and Services Life Sciences, Plant and Animal
Global Workforce Opportunities Energy Mining Technology Transportation, Logistics & Warehousing Senior Living Education & Training (also supports all the other clusters)
Is SI worth fighting for?Is SI worth fighting for?
©2008 ViTAL Economy, Inc. — 15 —
Measurable Indicators of ProgressTowards 2012 CSI Goals
It’s Time to Go Global!
0
2
4
6
8
10
12
Exports as a % ofGDP
U.S.
Illinois
SI
11%
8.4%
2.4%0%
10%
20%
30%
40%
50%
60%
70%
Private SectorPayroll & Benefits
Transfer Payments,All Gov't &
Education Earnings
U.S.
IL
SI
54%
33%36%
46%
67%64%
SI Becomes
an Innovation Economy
0.00
10.00
20.00
30.00
40.00
50.00
60.00
2005Southern Illinois USA-RuralUSA-Average Best in World
% P
enet
rati
on
o
f P
op
ula
tio
n
SI is a Global Broadband Leader
12%
24%
34%
54% Insured population +10%
Medicaid -26%
Medicare +18%
UninsuredUninsured -32% -32%
Healthcare Economics are Transformed!
Is SI worth fighting for?Is SI worth fighting for?
©2008 ViTAL Economy, Inc. — 16 —
2012: What SI Success Looks Like
Southern Illinois is the global location where inter-generation active lifestyle families, visitors & KBE workers choose to live work and play — growth abounds
SI’s historic liability of remoteness and lack of access becomes an asset; instead of forgotten by Chicago, Springfield and Washington, SI is a land and lifestyle treasured, respected, sought after and envied — there is only one SI in the World
SI communities see themselves in a new light; they are respectful of their place; they see themselves as gateways to a land that is "The Garden of The Gods"
Tourism venues, town centers,rural lands, business locations and neighborhoods all demonstrate by their look and feel that SI is a very special place to be preserved and enhanced for all time
SI is a place of welcome for people of all cultures whether visiting or living here; in the land of "The Garden of the Gods” all are welcome and of value
It is a place many want to be, but only the fortunate choose to take advantage of this unique opportunity; SI becomes a place that is worth a premium, rather than one that feels it must offer a discount to be desired
Source: ViTAL Economy Alliance
Is SI worth fighting for?Is SI worth fighting for?
©2008 ViTAL Economy, Inc. — 17 —
The Call to Action
• These Goals/Strategies/Actions are ambitious but are, in fact, achievable:• Unless you strive for stretch goals — you will never get
to “adequate”
• The key questions each of you must answer:• Is SI worth fighting for? If not now, when?• Are you willing to take control of your destiny?
“Let me assert my firm belief that the only thing we have to fear is fear itself -- nameless, unreasoning, unjustified terror which
paralyzes needed efforts to convert retreat into advance” — FDR 1933 Speech to turnaround the Country’s pessimistic outlook —
“Let me assert my firm belief that the only thing we have to fear is fear itself -- nameless, unreasoning, unjustified terror which
paralyzes needed efforts to convert retreat into advance” — FDR 1933 Speech to turnaround the Country’s pessimistic outlook —
Is SI worth fighting for?Is SI worth fighting for?