January 2012 Newsletter

Prosperity Southwest Wisconsin Economic Development Cooperative recently completed a branding exercise and market survey. I want to share with you some of the data that was presented for the Region.

The results are broken into categories that indicate mutual characteristics, values and location of the population. Does any of this sound familiar?

Thirty seven percent of the population is categorized as Rural II, which has low population density living in the country with the inconveniences of needing multiple vehicles and the advantages of affordable single-family homes with land. Most work in mining or manufacturing and are settled homeowners, few of which will move. Family and home are central in the Rural II person's lives. Residents are slightly older than the US median, with a median age of 40.1 years.

Twenty percent are categorized as Rural I, which are small non-farm settlements some of which are self-employed with small businesses or farms; or work in blue collar occupations. Many are do-it-yourselfers, proud of their homes and gardens, investing in major home improvement projects and have the tools to do the job. Residents may not be farmers, but they embrace the country lifestyle with their favorite pastimes being gardening, hunting, fishing and pets.

The previous categories are further defined into Tapestry Segments with the three most relevant being Prairie Living, Rustbelt Traditions and Salt of the Earth. More than sixty seven percent of the residents are in the labor force, unemployment is low and one in four residents who work are self-employed. The Rustbelt Tradition represents eleven percent of the population and has characteristics of little diversity in the community and for years these residents have sustained the manufacturing industry. The eleven percent Salt of the Earth resident is settled, traditional and hard working.

Sterling's Best Places reports that Southwest Wisconsin ranks above the State and National average for housing costs and availability, home ownership rate, high school grads and graduates with two year degrees. Coming as no surprise, agriculture/mining and manufacturing outscore the State and Nation for percent of population by occupation.

Richland County ranks extremely well in air quality with a rating of ninety seven out of one hundred. The crime rate is a three on a scale from one to ten with one being best. The cost of living in Richland County rates an eighty five with the national average being one hundred and the State being ninety three. And last, but certainly not least, is the future job growth rating. Richland County has a twenty six point eight percent of future job growth compared to the State's twenty four point twenty six percent and the National twenty one point sixty eight percent.

So with all of the positive data supporting living and working in Southwest Wisconsin and Richland County specifically, why do we have jobs going unfilled? Perhaps we are not sharing our story and inviting others to prosper here.

Economic Development Corporations are widely recognized by business and industry professionals across the country as an efficient point of contact for expertise, credibility and capable resources with networks to contribute to development initiatives. The credibility stems from the on-the-ground knowledge of what is happening in the industries, regionally, nationally and globally, which leads to business recruitment, expansion and retention programs that advocate and promote improving the business climate in the local community.

I will share with you what that means to the community.

Collaboration between RCDA, business leaders, and elected officials, advocacy and communication warranted the announcement that the Wisconsin D.O.T. will not be pursuing the three roundabouts connected by the raised median alternative at this time for Hwy 14 East. They are narrowing their focus to alternate options at the Starlite Lane and Richland Square Mall entrance.

Our connection and relationship with our local employers allows us the opportunity for first-hand and on-time knowledge of employment needs and referral opportunities. We pursue initiatives on behalf of our employers so they can focus on serving their customers, remain profitable and create jobs. This week we had five local employers take advantage of a HealthCheck360 presentation for healthcare cost saving options.

The joint Economic Development / Chamber / Visitor Center / Tourism model of the RCDA ensures that development efforts and resources are aimed at the most significant economic development initiatives, which include tourism, by creating a magnet for attracting visitors, future residents and stakeholders to the area by promoting the unique qualities of the area which attracts and generates opportunities.

The visibility and reputation of the RCDA as an economic development organization has generated consultations and site visits with eight companies looking to expand or locate in Richland County.

The Richland Center overnight hotel revenue collected in the first three quarters of 2011 is 10% higher than reported in the first three quarters of 2010. Using figures provided by WI Department of Tourism, "Those dollars are re-circulated back into the local, state and national economies and directly benefits virtually everyone in Wisconsin by generating tax revenues, which help pay for our roads, schools, programs for the disabled and elderly and more. So, even if those dollars weren't spent at your business directly, you still feel the positive effects of that spending." One in thirteen jobs (7.6%) were supported by traveler spending in Wisconsin last year. Without the taxes generated by tourism, each household in Wisconsin would be responsible for paying approximately $1,000 in additional taxes if the tax revenue from tourism was taken away.

The RCDA Gift Certificate program is another example of business collaboration, business and job retention, business advocacy, and tax base generation by promoting local shopping. Every year an average of $10,000 is circulated locally in the community.

These initiatives depend on support from businesses and individuals who understand the value of the resources we offer.

Wisconsin's recent economic ranking. 43rd in Forbes Best State for Business and Careers, 29th in CNBC's America's Top States for Business, 49th in Kaufmann Foundation's Index of Entrepreneurial Activity, 40th in the Tax Foundation's State Business Tax Climate Index and 10th among 12 Midwestern/North Central states in Site Selection Magazine's Governor's Cup rankings of economic development activity.

Rankings suggest that a formula for success can be found by looking at the higher ranked areas. However, ranking is a snapshot that ignores the role of the region's economic history.

Economic conditions, funding, supply, demand and infrastructure are constantly changing. How much of the outcomes are in direct relation to the actions taken? Is it just dumb luck? Is it because of actions taken by others at the same time? We know very little about what works. On the flip side, we learn quite quickly what doesn't work. Or so it seems.

Data is the ingredients, compiling information transforms the ingredients into a cake, the presentation is decorating the cake, and the truth is only revealed when the final product is put to the test. You might not know it's a disaster until you take your first bite. What do you change and by how much next time for a better outcome?

The effectiveness of economic development activities is difficult to measure. For example, changes to the riverbed upstream are difficult to measure downstream where the water flow and capacity have converged with other creek adjustments and empty into a large body of water such as the Mississippi River. Another example, a golfer evaluates the terrain between the spot and the target to strategize the proper club, direction and swing to maneuver the ball for appropriate reactions to the slightest bump or curve on the green for success. However, lack of adjustment, a usual swing with the same club every time could have a drastically different outcome. Effective well defined actions may or may not have a noticeably significant impact relative to the total outcome.

Ed Morrison, Purdue University, Center for Regional Development is working with Wisconsin Economic Development Associate (WEDA) and the Wisconsin Economic Development Corporation (WEDC) to teach the principles of Strategic Doing so that Wisconsin can Be Bold(er) in improving their position in the global business climate. We can no longer count on our grandfather's economics. The old approach is costly and difficult to manage. Finding new opportunities by aligning, linking and leveraging assets is nothing new, but the future lies in thinking differently about the economy, behaving differently to build trusted civic networks and doing differently to collaborate strategically. Network Economics means seeing with new eyes.

The Strategic Doing Cycle provides the discipline to manage open networks of finding opportunities by connecting assets "What could we do together" Converting opportunities to outcomes by defining measureable successes "What should we do together" Moving from outcomes to action with a shared project "What will we do together", and learning and adjusting by coming back together "When will be get back together"?

The RCDA is where interested parties can come together to build capacity by advocating together, learning together and innovating together.

I can't wait to taste that cake. How about you?

September 1 is the time of change. The new school year begins and the Richland Chamber and Development begins our annual membership campaign.

I will begin by sharing a few of the exciting things happening in our community and within our organization.

You will begin to see a renewed emphasis on marketing the values, assets and benefits of the community, building relationships to create opportunities, and creating value for our members and the community.

This past year has brought some exciting changes for the Richland Chamber and Development. Mary Jo Fortney joined RCDA and has been a tremendous help in working toward our many membership and economic development goals. She brings fresh new ideas, leadership and enthusiasm to engage others in collaborating for success.

It is our daily mission to pursue a large network of partners to assist us in growth, financial stability and building the economic foundation of the community. We rely heavily on the collective teamwork of many dedicated individuals to provide leadership and support for us to succeed as a catalyst for opportunity.

We have had the good fortune of assisting with the distribution of County CDBG-EAP Flood Recovery funds, several RLF loans for business expansions and even a few start-ups. Through our assistance, many of the manufacturers have been provided the opportunity to discuss and find solutions, (therefore benefits) towards critical issues of doing business in the area. We've been blessed with the opportunity to assist commercial property owners find tenants and provide many new recruits with information about our community. With the assistance of many partners, we are starting to gather resources and make connections that we anticipate will improve the challenges of finding appropriate housing for employees.

As the State's Economic Development Corporation was created to increase the marketing efforts and efficiencies for job retention and recruitment, so has Prosperity Southwest Wisconsin Economic Development Cooperative. The RCDA is represented as the Secretary-Treasurer of Prosperity, which opens new doors of opportunity and allows mobility for the team to act swiftly. Prosperity's international marketing efforts of the strong dairy producers in Richland County and the region, have led to a Japanese Company pursuing an opportunity to import SW WI dairy products.

When mother nature cooperates, we've experienced tremendous growth in the number of tourists and events in Richland County. The opportunity to generate additional County revenue during the winter season with a snowmobile race was a referral directly from a relationship with the RCDA. The Driftless Film Festival accepting Richland Center as a prime location to host their event will expose this area to film industry people from all over the Country. Motor and Non-motorized cycles have found this area to be an exceptional experience. We know this to be true, based on the volume of calls, visitors and email requests for information we distribute through our office and the visitor center.

Our organization has made great strides toward improving the results of our work. We look forward to 2012 with anticipation of a greater emphasis on financial sustainability, and building relationships to develop opportunities.

Thank you for your continued support of our organization. Our growth and activity this past year is a direct result of the financial contribution from exceptional partners. We intend to leverage our resources to create more programs and support for business, industry, and tourism in Richland County.

See what others are saying about us. Check out the blog section of our website on www.richlandalliance.com.