October NEO Economic Development System Update

From the Desk of Bill Koehler

Thanks to the good work of entire economic development network, we are entering the last quarter of 2016 with an opportunity to deliver significant performance improvement over recent years. Specifically, our results through the third quarter surpassed our 2015 totals. And, we continue to build core strategies that will contribute to the region’s long-term success. Our fourth quarter new business pipeline is promising, and our team is working with our Partners to “finish the job” as we complete 2016 and begin preparing for 2017.

Looking at our results for the first three quarters of 2016, they are in line with our 2016 year-end goals across all categories. For A and B metrics through the end of September, we have closed 61 projects, generating 3,759 new jobs (84% of our annual goal), $209M in new payroll (103% of our annual goal) and $1.2B in capital investment (153% of our annual goal). Attraction wins represented 14 projects (70% of our annual goal) through September generating a total of 784 new jobs (65% of our annual goal), $43M in new payroll (87% of our annual goal) and $929M in capex (465% of our annual goal).

In other news of interest:

  • JobsOhio Releases 2Q 2016 Report: JobsOhio recently posted its second quarter report, showing job creation, payroll and capital investment data by industry, region and funnel stage. Northeast Ohio is represented very well within the report, which has not been the case in the past two years, so we thank all of our partners for their efforts driving regional business development outcomes.
  • Governor’s Cup Submissions: As you may know, every year Site Selection Magazine produces their annual Governor’s Cup rankings, which look at the economic development activities of all 50 states. Their rankings are based on the data collected by Conway Data. If you have not done so already, I encourage you to submit projects from you area to the Conway Database. Positive rankings can attract additional attention to economic development opportunities in both the state of Ohio and the local communities that are featured annually. For additional information and to submit a project, please visit: http://jobs-ohio.com/govcup-input/.
  • Additive Manufacturing Study, Mapping: Thanks to a $98,000 grant from the Fund for our Economic Future, awarded last November, a study of the region’s additive manufacturing assets was conducted by the Youngstown Business Incubator, America Makes, Team NEO and Magnet. Among the learnings: With a strong manufacturing base and a variety of university and institutional resources, the region is well-positioned to connect end-markets, like biomedical and aerospace, to our existing and emerging 3D printing technology. Yet, there are big hurdles to overcome, including a lack of software initiatives in this space and limited venture funding. The study notes five goals that need to be addressed and recommended actions that mostly follow a four-year time frame. The (Youngstown) Business Journal offers a good overview of the work: http://businessjournaldaily.com/layered-approach-to-build-3-d-manufacturing-cluster/
  • Grants/Collaborations:
    • Youngstown Business Incubator (YBI): We have two collaborations underway with the YBI. First, we are a collaborator on the Advanced Tooling Acceleration Program (ATAP) project at YBI’s facility located in Youngstown. The project is funded by the State’s Ohio Development Services Agency (ODSA). During a two-year period, which began in August, Team NEO’s Innovation Team will be assisting with business development activities. A total of $40,000 will be paid to Team NEO and requires a commitment of Team NEO for a 1:1 match, which will be met with philanthropic dollars. Second, as of September, Team NEO has entered into an agreement with YBI to have the Team NEO Innovation Team serve as the Executive-In-Residence (EIR) in the Additive Manufacturing space for the JumpStart Entrepreneurial Network (JEN). Team NEO will provide entrepreneurial coaching, support and business counsel to Northeast Ohio entrepreneurs.

All of our partners along with Team NEO’s staff should feel pride in producing strong results to date. By focusing and executing well on our common objectives, we are identifying opportunities to help local companies see the value of investing in Northeast Ohio and attracting new companies that can thrive here. We are in a strong position to achieve our performance objectives in 2016, moving closer to performance levels RECS envisioned. Clearly, there is much more work to do, but our progress is encouraging.

All the best,