Driving the Economy CASE STATEMENT FOR THE IOWA CITY AREA DEVELOPMENT GROUP’S VISION 2030 CAMPAIGN
Vision 2030 WHERE WE’VE BEEN Our region has a rich history of a “can-do” attitude and of achieving what we set out to do. We have a well-educated citizenry, a strong mix of local, regional and interstate businesses and we continue to fare well in the lingering national economy. The past five years were quite successful for the Iowa City Area Development Group. The organization’s core programming contributed to positive outcomes with 34 individual projects and resulted in over 3,100 new and retained jobs and more than $275 million in new capital investment.
CHARLES FUNK MIDWESTONE BANK CAMPAIGN CO-CHAIR
Many might say — “good enough for me.” But despite the good work accomplished during the past five years, despite the efforts of talented and hardworking people, the abundance of resources, the central location, the presence of strong K–12 schools, Kirkwood Community College, and the University of Iowa, our region remains challenged by complacency, lack of recognition and the absence of a common purpose to compete globally.
WHERE WE’RE GOING Starting in the fall of 2009, ICAD Group’s leaders created a 20-year vision of the future for our region consistent with the culture of innovation that is required to compete in a global economy. That vision will guide our programming for the next five years: Our purpose is to create a center of commerce and innovation nestled in an area providing an unmatched quality of life. We will create, collaborate and lead regional economic development initiatives that contribute to a highly skilled, educated and inquisitive workforce and enhance a collection of communities powerfully bonded together and strategically aligned under a regional brand.
HOW WE WILL GET THERE SALLY MASON UNIVERSITY OF IOWA CAMPAIGN CO-CHAIR
In order to begin the journey toward the 20-year vision, ICAD Group is executing a bold new game-plan; one that we believe is necessary to build capacity for future competitive success and that focuses the strengths of our prior work in new directions. This strategy will augment our core work with existing industry, workforce development, business recruitment and entrepreneurial development in order to compete on the global stage: •
We are committed to developing a region that is global in thinking and action. ICAD Group, and the communities we represent, will be connected to the world and it to us. Existing partnerships with our clients, the community, regional partners and the University of Iowa will help foster this global connection.
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Our region will be known for its world class workforce and education systems. These systems will be developed to meet the needs of our marketplace with the input and collaboration of the community. The results will not only aid and impact business and industry, but will also strengthen our global reputation as a leader in education and workforce development.
By bucking old trends and traditions, we will further develop a culture of innovation that is entrepreneurial in its thoughts and actions. The families, workers, students and retirees living in this region will embrace our sense of community and belonging. Long gone will be the days of humble, risk-averse Midwesterners.
FORWARD THINKING. ACCELERATING GROWTH. Well-orchestrated economic development, with a clear vision for the future, is pivotal to our region’s well-being and community quality of life. ICAD Group consistently adds value by growing existing interstate business and recruiting companies in targeted sectors we desire to add to our economic mix.
KATE MINETTE PEARSON CAMPAIGN CO-CHAIR
Vision 2030 is a journey with benchmarks set all along the way to measure and ensure progress and performance. Your time, talent and dollar commitments to the ICAD Group program of work is one of the most important investments you will make. Join us in our commitment to shaping our region’s future and establishing the quality of life we leave for our future generations.
ANITA FALKOFSKE EATON
CHUCK PETERS SOURCEMEDIA GROUP CAMPAIGN CO-CHAIR KELLY HAYWORTH
RONALD R. REED
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Interstate Commerce: Driving TOURISM AGRICULTURE THE UNIVERSITY OF IOWA
OUTSIDE DOLLARS COME INTO THE IOWA CITY AREA In any community, the primary force driving economic growth comes from the goods and services produced locally and sold outside of the market. In the simplest of terms, interstate commerce activity directly impacts job creation, wages and benefits, capital investment and tax revenues. From the largest of production facilities to the smallest of startups, each has a direct impact on the growth of the Iowa City area. The contributions of all of these companies, as well as the impact and influence of tourism, agriculture and the University of Iowa, funnel into our economy and help our region flourish. Our goal is to grow the funnel through the growth and retention of existing interstate companies; the attraction of new, targeted companies; and the creation of new businesses. As the funnel grows, spending increases across our entire economy.
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Economic Development THE LOCAL ECONOMY GROWS AS INTERSTATE COMMERCE DOLLARS ARE CIRCULATED The payroll, personal taxes, business taxes, and sales expenditures of interstate commerce companies and their employees circulate in our economy, helping to create and sustain thousands of local jobs in sectors such as healthcare, housing, retail, finance, arts, government, development, education and others. These companies and their employees make bank deposits, retirement investments and secure loans. City and county governments, along with local school districts benefit from tax revenue. And, human service agencies and the non-profit community receive donations from these dollars. Even during the recent global economic downturn, our diverse business climate has innovated and adapted to remain economically relevant. Last year, the business activities of just ICAD Group interstate commerce clients translated into nearly 14,000 jobs paying an average of $42,000, excluding benefits. Over the past five years, these companies have reported payroll amounts of more than $700 million annually, contributing $3.5 billion to the local economy. The challenge looking forward? Maintaining, growing and attracting interstate commerce in the Iowa City area amid growing global competition. More than 15,000 economic development groups nationwide are working to lure projects with aggressive incentive packages. Communities are now competing in areas such as workforce capability and availability. Project development schedules have shortened, with companies demanding shovel-ready sites. Companies are looking for innovative cultures that will help them compete and grow. You can see that the process is accelerating and the dynamic is shifting. Enhancing the quality of our area communities requires a clear vision and specific plan for the future. The Iowa City Area Development Group has witnessed the evolution of economic development and prepared accordingly. We have now embarked upon the process to establish and quantify the next five-years of actions and we need your support. United, we can achieve our goals, accelerate growth and continue to drive the area economy for generations to come.
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ICAD Group Strategic Initiatives WHAT WE WILL LEAD ICAD Group will play the lead role in regional interstate company development focused on driving and maximizing the potential for planned growth in industry sectors. We will provide significant assistance to the achievement of the following results:
OUTCOME MEASUREMENT — FIVE YEARS BEGINNING IN 2012 • We will increase our number of working projects from 34 to 55 • Expansion/retention projects with 24 existing interstate commerce companies will contribute 1,605 high quality jobs • We will attract 15 targeted interstate companies creating 860 high quality jobs • 16 new interstate companies will be created — adding 170 high quality jobs • The impact of interstate commerce business and jobs will create/retain an additional 1,370 jobs in our area economy • We will increase total interstate commerce capital investment from $275 million in the past five years to $400 million in this five-year period • Total employment in the area will increase 6.6 percent to more than 95,800 people by place of work • Interstate commerce workforce will increase 7.5 percent to more than 15,000 employees • The private sector wage for all jobs will increase 9 percent to $17.60 and interstate commerce projects we assist will pay an average wage of at least $21 per hour
Business Retention and Expansion
Communications and Administration
Targeted Business Attraction
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Existing Industry To become nationally recognized as a center for commerce, existing and emerging interstate commerce companies are a top priority. Existing firms represent more than 70% of economic growth in a market. ICAD Group will continue to work with existing companies to help them become significant employers in our area.
Assist 24 existing interstate commerce companies with expansion/ retention projects — contributing 1,605 high quality jobs
FIVE YEAR BUDGET
OUR PLAN OF WORK
• Communicate with all clients on an annual basis to determine existing industry needs and provide assistance when necessary, including expansion and retention projects. • Utilize our award-winning existing industry program to delve deeper into the strengths and weaknesses of our area for business. These annual surveys guide ICAD Group programming and contribute to the discussion of public policy initiatives which further drives the growth of existing, new and recruited companies to our market. • Maintain existing outreach programs including national and international headquarter visits as well as quarterly industry roundtable meetings. • Execute a partnership agreement and prepare a comprehensive plan that fully aligns University expertise, resources and intellectual capital with existing interstate commerce companies. Through this partnership, develop significant programs and projects of lasting economic value and match to the research, workforce and production needs of existing companies.
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Targeted Business Recruitment To achieve future community development, we must work with new interstate commerce companies representing targeted sectors including educational testing and support, life sciences, renewable energy, information technology, and consumer goods. This work includes meeting with decision makers and developers, hosting site location consultants, listening to companies about the needs of tomorrow, and engaging local and state government officials.
Attract 15 targeted interstate commerce companies creating 860 high-quality jobs
FIVE YEAR BUDGET
OUR PLAN OF WORK
• Continue to work with companies researching our market and promote regional assets and resources to targeted industries and companies through trade shows and conferences, marketing material, and engagement with site selectors. • Act upon the region-wide economic development strategic plan, developed in cooperation with members of the Corridor Business Alliance and other partners. Early initiatives include developing land use planning and the transportation infrastructure for our region. • Execute a partnership agreement and prepare a comprehensive plan that fully aligns University expertise, resources and intellectual capital for targeted company recruitment. • Continue to build awareness and participation in Iowa’s only Certified Shovel Ready Sites Program.
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Entrepreneurial and Innovation Development The economies around the world are being defined not just by what hands can build, but also by what minds can create when they come together. ICAD Group is playing a lead role in developing a culture of innovation and connections, and we must capitalize on the strength of alliances around this issue for the advancement of our region. By providing new spaces, forging partnerships and hosting events, we will build on the power of ideas. Through these powerful connections, our area becomes revered as a player on the global stage, offering products and services of value to the global economy.
16 new interstate companies will be created — adding 170 high quality jobs in the short-term
FIVE YEAR BUDGET
OUR PLAN OF WORK
• Open the market’s first full-time coworking facility, known as IQ CoLab, to provide mobile workforce, young companies, start-ups, and teams from existing industry a place to work together and develop ideas. • Partner to create other innovative spaces and maintain a constant stream of high level programming and activity that keeps entrepreneurs engaged and creates an intellectual infrastructure in our area. • Benchmark and measure the progress of ICAD Group against leaders in innovation such as Austin, Raleigh-Durham, Boulder and Silicon Valley. Additionally, work with other agencies to promote entrepreneurial development. This will build our global recognition and help create and grow innovative companies engaged in interstate commerce. • Execute a partnership agreement and prepare a comprehensive plan that fully aligns University expertise, resources and intellectual capital to help with the creation of new companies and technology transfer. This engagement is highly beneficial to the overall development of the area economy. • Act upon the region-wide economic development strategic plan, developed in cooperation with members of the Corridor Business Alliance and other partners to increase capital funds available for investment in the entire spectrum of business enterprises.
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Workforce and Education The Iowa City Area Development Group will play a lead role in developing and implementing an integrated workforce development system that identifies and aligns the availability, affordability and capability needs of our interstate commerce companies with our regional workforce. In doing so, this system will also serve the workforce alignment needs of local market sectors.
Total employment in the area will increase 6.6 percent to more than 95,800 people by place of work. Interstate commerce workforce will increase 7.5 percent to more than 15,000 employees.
FIVE YEAR BUDGET
OUR PLAN OF WORK
• Continue to improve upon successful, regional workforce development strategies and programs including targeted alumni outreach, military transition programming, the PickYourPace website and packet, career fair promotion and bi-annual networking events for new workforce and leadership in the region. • Communicate relevant and pertinent information regarding workforce topics to key audiences. This includes frequent updates of area laborsheds and benefit/salary surveys for existing industry, member communities, investors and business prospects; hosting guest speakers to address human resource issues; and outreach and sharing best practices through local committees and advisory boards.
• Act upon the region-wide economic development strategic plan, developed in cooperation with members of the Corridor Business Alliance and other partners, focused on ongoing workforce development initiatives including regional skill assessment, skill development, diversity, and recruitment and retention strategies.
• Execute a regional partnership agreement and comprehensive plan with Kirkwood Community College, ACT, Inc., the Cedar Rapids Metro Economic Alliance, area community school districts, the University of Iowa and others with a vested interest in producing a workforce equipped with the skill sets required to meet the global visions, missions, strategies and plans of regional interstate commerce companies.
• Remain supportive and provide advice and counsel for United Way’s 2020 Vision, particularly those components that focus on education, income and health in the development of a workforce fully capable of performing in today’s business world.
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Communications, Partnerships and Administration All ICAD Group core programming areas require communications and administrative support. These departments are often the primary point of contact for clients, the community and investors. Additionally, ICAD Group builds and maintains regional partnerships essential to broad community development interests. As part of our commitment to the development of this region, ICAD Group will provide timely and pertinent information and support to our investors, clients and partners working to enhance our communities.
To serve as the investor and client point of contact for ICAD Group; to produce and promote award-winning programming, worthy of recognition from peer groups and professional associations; to enhance the image and awareness of ICAD Group locally, regionally and internationally; and to facilitate ongoing partnerships and collaborative activities.
FIVE YEAR BUDGET
OUR PLAN OF WORK
• Implement the new ICAD Group investor relations plan within twelve months. • Continue successful and award-winning investor outreach initiatives, including annual meetings and reports, quarterly investor breakfasts, quarterly newsletters, primary website, and e-mail updates. • Continue to lead regional marketing efforts through the utilization of social media, mobile applications, videos, blogs, websites and microsites. • Support Iowa City Area Chamber activities and programs, such as leadership training, Blue Zones, and public policy, which directly enhance economic development in the Iowa City area. • Create customized material for targeted industry recruitment, headquarter visits and meetings with site selection consultants. • Work regionally to support and market economic development programming, to implement regional branding initiatives, and to build awareness of the “IQ” concept.
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ANNUAL SUSTAINING INVESTMENT LEVELS
Beginning in 2012, ICAD Group will implement a new investor relations plan. We fully anticipate more than 200 area companies and organizations to invest $5 million in our five-year program of work. This major commitment to the
Iowa City area will be used to implement our 2030 Vision
through the economic and workforce development initiatives
outlined in this publication.
In return for helping us promote high-value interstate
industry and job growth, investors receive special benefits
and services listed here. Benefits of most interest to each
individual investor will be developed and implemented
as part of our ongoing “one-on-one” focus. ICAD Group will actively engage with our investor base to ensure we are delivering a return on your investment. With these investments and the work of ICAD Group, our region is the ultimate beneficiary through greater prosperity and quality of life.
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COMMUNICATION ABOUT KEY ISSUES • ICAD Group newsletters distributed four times a year as well as frequent e-mail updates regarding programs and development activity • Access to advance copies of demographics research, special ICAD Group publications and more • Exclusive invitations to special briefings and presentations • Access to senior staff at ICAD Group for council and/or communication on key economic development activities that impact your business or organization • Opportunity to join ICAD Group board committees as well as attend monthly meetings on key development issues including workforce, communications, business development and entrepreneurial activity
“Healthcare is just one of many sectors that directly benefits from the services provided by ICAD Group. The jobs created and maintained by ICAD Group clients translate into millions of dollars circulated in our local economy, from healthcare to new home sales to our non-profit community.” Kenneth P. Kates, CEO of the University of Iowa Hospitals and Clinics and Associate Vice President of UI Health Care
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ENHANCED VISIBILITY • ICAD Group will actively engage one-onone with each investor to ensure we are delivering a return on their investment • Invitations to high-level networking opportunities and social events including three Investor Council breakfasts each year • Exposure to fellow key community and business leaders supporting ICAD Group economic development efforts • Inclusion in listings of investor companies, by investment category, on the ICAD Group website with contact information and/or website link • Invitations to private receptions for lead investors featuring representatives from newly attracted businesses and/or new executive leadership to the community • Introductions within ICAD Group investor base and to newly recruited business leaders to help position your business
“The Oral-B brand, part of the Procter & Gamble Company, is a worldwide leader in the over $5 billion oral care market. As one of this area’s leading employers, with more than 450 full-time employees, we rely on ICAD Group’s coordinated approach to economic development, workforce development, and existing industry engagement. They realize the impact new and well established interstate commerce companies have on this region and they provide solutions that directly affect the local economy, including job growth and business expansion.” Anita Falkofske Eaton, Plant Manager at P&G’s Oral-B Laboratories
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RECOGNITION FOR YOUR LEVEL OF SUPPORT • Recognition as an ICAD Group 2030 Visionary – clear evidence that you are a key player in advancing our region and ICAD Group’s 2030 Vision • Lead investors receive first opportunities to participate in economic development recruiting trips, trade shows and special events • Acknowledgement in ICAD Group annual reports with lead investors receiving special recognition at our annual meeting and in our media/publications • Priority consideration for serving on the ICAD Group Board of Directors
“ICAD Group is dedicated to sustaining a culture of innovation where growing companies like Innovative Software Engineering can flourish and become major employers. We’re appreciative of their expertise. They’ve provided essential information and assistance to help with our recent expansion and growing workforce demands.” Hass Machlab, Founder and CEO of Innovative Software Engineering
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(319) 354-3939 www.iowacityareadevelopment.com twitter.com/icadgroup facebook.com/icadgroup youtube.com/icadg Design provided by Benson and Hepker Design Printing provided by Tru Art Color Graphics
Published on Mar 1, 2012
This document details our new vision and plan for economic development to help drive our economy, accelerate growth, and prepare us for the...