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REGIONAL INNOVATION GRANT: ECONOMIC OPPORTUNITY STUDY FOR THE MICHIGAN UPPER PENINSULA / WISCONSIN BORDER REGION. October 6, 2009. Background. The UP/WI border region is in economic transition Several challenges in the region: Aging population Out-migration; “brain drain”
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REGIONAL INNOVATION GRANT:ECONOMIC OPPORTUNITY STUDYFOR THEMICHIGAN UPPER PENINSULA / WISCONSIN BORDER REGION October 6, 2009
Background • The UP/WI border region is in economic transition • Several challenges in the region: • Aging population • Out-migration; “brain drain” • Hurdles to mining and logging • Lack of diversification of economy • Lack of good job opportunities • Regional Innovation Grant obtained to conduct a study and formulate a regional plan • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions
Project Timeline • September 2008 - Contract awarded • October 2008 - Kickoff meeting • October 2008-April 2009 - Gather economic/ demographic data; review prior studies • October 2008-April 2009 - Online survey • December 2008-January 2009 - Focus groups • December 2008-June 2009 - Individual interviews conducted in person and by phone • May 2009 - Formulate strategies; Draft report • May-June 2009 - Steering committee and subcommittee meetings; obtain feedback • June 2009 - Revise and edit report • July 2009 - Finalize report • September 2009 - Rollout • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions
Selected Background Data • Jobs and Earnings by Sector • Educational Attainment • Per Capita Income • Employment • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions 4
JOBS AND EARNINGS BY INDUSTRY • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions Source: EMSI Complete Employment - 2nd Quarter 2009 v. 2 5
EDUCATIONAL ATTAINMENTOF THE POPULATION AGE 25 OR OLDER Highest Level Attained by Percentage of Regional Population • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions Source: EMSI Complete Employment - 2nd Quarter 2009 v. 2 6
PER CAPITA INCOME Per Capita Income 1998-2007 • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions Source: U.S. Department of Commerce, Bureau of Economic Analysis 7
TOTAL EMPLOYMENT • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions Source: U.S. Census Bureau, County Business Patterns 8
Methodology • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions • Previous studies reviewed • Economic/demographic data gathered • Demographic profiles • Business and economic profiles • Region-wide and sub-regional data • Stakeholder input obtained • Focus group interviews • Individual interviews • Online survey – Survey Monkey • Data analyzed • Strategies formulated • Implementation steps created 9
SURVEY RESPONSES HIGHLIGHTS Over 1,600 respondents from throughout the UP/WI border region took the survey. • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions • Only 17% feel that the regional economyis heading in the right direction • 57% feel that the region is a good placeto do business • 70% feel that there is an adequate labor force/ worker pool available in the region • Nearly 3/4 praise the work ethic in the region
SURVEY RESPONSES HIGHLIGHTS Industries most often cited as potentially important to the future economy: • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions • Health Care • Tourism and Hospitality • Education • Forestry • Energy/Alternative Energy/Biofuels • Manufacturing/Heavy Industry • Mining
SUB-REGIONAL HIGHLIGHTS • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions South Central sub-region includes Wisconsin’sFlorence and Marinette Counties.
FOCUS GROUP INTERVIEWS S. CENTRAL SUB-REGION HIGHLIGHTS • Strengths frequently cited: • Workforce - abundant, skilled, educated • Natural resources - natural beauty, water, forestry • Recreation and tourism - outdoor activities, water • Weaknesses frequently cited: • Lack of diversification - not enough blue collar • Taxes - corporate and personal rates too high • Government/politics - no investment in the region • Threats frequently cited: • Business climate - plant closings, manufacturing loss • Workforce - high unemployment, loss of young workers • Health care - rising costs, potential decline in service • Opportunities frequently cited: • Business attraction - broaden industry base • Educational opportunities - expand courses and training • Natural resources - logging, mining, forest products • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions 13
PERSPECTIVE A Brief History ofEconomic Development Timeframe: Development driven by: 200 Years Ago → Rivers and water 100 Years Ago → Railroads 50 Years Ago → Interstate highways Today → Knowledge networks 14
Takes into account the independence ofthe UP/WI Border region Provides high level networking and intelligence to help local/county/regional efforts Provides a platform for large scale projects, ideas, and grants Moves the region from a cyclical, resource-dependent economy towarda new, more stable economy Can we shape a regionalplan that ………… • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions 15
REGIONAL COMMUTING PATTERNS • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions
UP/WI Border Region REGIONAL ORGANIZATION AND THINKING MI WI MN IA 17
THE REGIONAL ADVANTAGE 17 Counties 4 Sub-Regions 1 Region • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions Keweenaw Houghton Ontonagon Baraga Luce Marquette Chippewa West Gogebic Alger Schoolcraft East Mackinac Iron North Central Delta Dickinson Florence Menominee South Central Marinette 1 Unifying Vision for Economic Prosperity 18
STRATEGY: Higher Education Why do this? • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions Average Annual Earnings by Educational Attainment 19
STRATEGY: Higher Education Build on the higher education cluster inthe region; Expand enrollment, researchand entrepreneurial activity; Raise educational attainment of the workforce • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions Tactics: • Support the region’s educational institutions inbuilding programs and enrollment • Build on the growing higher education researchbase to develop additional R&D programs 20
STRATEGY: Educationand Workforce Training Why do this? • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions U.S. Educational Attainment 1960-2007 21
STRATEGY: Educationand Workforce Training Increase the skill and education of the regional workforce to increase competitiveness • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions Tactics: • Work to raise overall educational attainment in the region • Build on existing programs to increase the experientialand entrepreneurial opportunities for K-12 students • Build on existing regional workforce training programs to train or retrain workers in manufacturing, health care, and specific industry clusters such as forest products, digital communications, entrepreneurship and shipbuilding 22
STRATEGY: BusinessGrowth and Development Why do this? • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions -1.2% 0% 5.5% 11% Source: U.S. Census Bureau; County Business Patterns 23
STRATEGY: BusinessGrowth and Development Work to grow existing businesses and new businesses; Establish a region-wide cultureof collaboration and innovation to attract entrepreneurs and existing business investment • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions Tactics: • Work to increase the growth of existing businessesand new businesses through the use of SmartZonesand the Wisconsin Entrepreneurs Network • Establish an international business network andeconomic development strategy • Establish a network of incubators and business parks • Establish a region-wide high-tech business plancompetition 24
STRATEGY: Tourism and Seasonal/2nd Home Residents Why do this? WildernessAreasin theUP/WI Border Regionby Type 25
STRATEGY: Tourism and Seasonal/2nd Home Residents Have the region become a major tourismdestination and 2nd place of residence • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions Tactics: • Develop and implement a coordinated tourismcampaign for the entire UP/WI border region • Determine need for further Great Lakes Portdevelopment • Aggressively promote winter sports in the region • Develop a region-wide recreational trail network • Explore programs to capture and utilize the talentof seasonal and retired residents 26
STRATEGY: Infrastructure Why do this? • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions Cellular Telephone “Dead Zones” by Carrier 27
STRATEGY: Infrastructure Develop a 21st century vision for broadband/cellular service, highways, rail serviceand air service • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions Tactics: • Expand broadband and cell phone penetrationacross the region • Develop a comprehensive highway plan for the region • Develop a comprehensive rail service plan for theregion • Develop a long-term air service strategy for the region 28
STRATEGY: Natural Resources Why do this? • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions Forest Map of Wisconsin and Michigan by Type 29
STRATEGY: Natural Resources Continue to promote use of the region’snatural resources in an environmentallysound, safe and sustainable manner andfocus on strategies to promote value-added economic activity within the region • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions Tactics: • Establish a Northern Products cluster group • Establish a biomass/biofuel energy consortium • Continue exploring wind as alternative energy source • Build economic growth and job/business creationaround a green waste transformation cluster • Develop a business model to support value-added manufacturing 30
STRATEGY: Health Care Why do this? • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions 31
STRATEGY: Health Care Provide citizens of the region with thehighest quality, affordable, convenienthealth care services available • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions Tactics: • Explore the establishment of health care cooperatives • Enhance and expand the use of telemedicine • Explore how to retain more medical care spending thatis lost to other regions • Increase worker training to support the existing and growing health care industry in the region 32
ImplementationTop Priorities: • Higher education focused on growing the research base, higher education enrollments, tech. transfer and spin-off opportunities from research and other activities • Biofuels/Biomass consortium • Workforce training in paper and forest products, shipbuilding, digital technologyand entrepreneurship • New Economy infrastructure - broadband; cell service; region-wide communication network • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions 33
ImplementationHigher Education Map Michigan Technological University Related Research Programs in the Region Research Program U.S. Forest Service-Houghton Northern Michigan University Nat’l Ecological Observation Network Marinette Marine Hull Lift Research Engineering Programs SmartZone Biofuel Research/Projects IT-IBM Nearby Universities Forestry Program IT Great Lakes Research Center Network SecurityNetwork EngineeringNetwork Maintenance & Technology UW-Stevens Point Paper Science & Engineering BioFuel Research Higher Education Digital Television UW-Green Bay Training Enterprise Digital Staffing Environmental Science & Policy Waste Transformation Wireless Technology Michigan State University WiMax Project Great Lakes Bioenergy Research Center Forestry Program Capacity Building Obama Admin. Plan Community/Tribal Colleges Lake Superior State University Finlandia University Workforce Training Partnerships Bay College Robotics Bay Mills Community College International Business Environmental Testing Lab Great Lakes Composite Institute Gogebic Community College Finnish Connections Prototype Development Ctr Keweenaw Bay Ojibwa C. College Int’l School of Art & Design SmartZone UW-Marinette College of Health Sciences 34
ImplementationWorkforce Training Map Ship Building Marinette Marine FincantieriExpansion Plans UP Regional Industrial Manufacturing Alliance Entrepreneurship Training NWTC Boat/Ship Building Excellence Center Digital Technology MI SBTDC Workshops NMU Digital TV Training Programs and Capacity NMU, LSSU, MTU Entrepreneurial Curricula and Resources Workforce Training Forestry/Paper K-12 Educators Outreach Michigan Forest & TimberRegional Skills Alliance 35
FINCANTIERI WORKFORCEIN THE REGION • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions 36
The study is done! • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions The challenge lies ahead! So what’s next? 37
Leadership is the key to getting something done. Look to leadership in theUP/WI border region from: • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions • Private Sector • UPEDA • Operation Action UP • Workforce Boards • Universities/Colleges • RPCs • Chambers and EDCs 38
MOVING AHEAD 1. Focus your efforts -do a few things well • Background • Methodology • Stakeholder Input • Subregional Highlights • Strategies • Implementation • Conclusions 2. Build on current efforts 3. Link & partner with other regional initiatives4. Leverage the 2 state advantage 39
David J. Ward, Ph.D., CEO • Office Phone: (608) 441-8060 • Mobile: (608) 279-3393 • Fax: (608) 441-8064 • E-Mail: dward@northstareconomics.com • Web:www.northstareconomics.com 40