By Bill Thompson
Via: Ocala.com

For the Chamber of Commerce and Economic Development Corp., it’s time to get down to business.

Local business leaders say Ocala-Marion County’s main business promoters have essentially completed the merger they embarked on in August, when the respective boards of both organizations voted to combine forces.

As billed back then, the new agency promises to be leaner, more focused and more driven by the private sector, said some involved in the process who visited the Star-Banner on Wednesday.

The new agency will be called the Ocala-Marion County Chamber and Economic Partnership.

The name reflects the new organization’s mission: to draw together and utilize the best traits and expertise of the chamber and the EDC, proponents said.

The idea of a merger was conceived last year as the recession lingered and as unemployment locally persistently hovered above 12 percent.

It also evolved after the County Commission, reacting to what it perceived as ineffective action by the recruiters, had launched its own aggressive plan to create jobs.

Doug Cone, chairman of the EDC board, said Wednesday the community, especially its business sector and promoters, had grown “complacent” with the steady growth in the late 1990s and early part of the last decade.

That attitude, he added, seemed to carry over after the onset of the recession, which revealed how dependent the local economy had been on one narrow segment: building new homes.

Cone said the EDC, for example, had been “moderately effective” in spurring new business growth in recent years.

Yet he maintained that President and CEO Pete Tesch and his staff became bogged down in the “politicking” of trying to satisfy the County Commission and Ocala City Council — whose combined $290,000 annual subsidy comprised a large part of the agency’s budget.

Meanwhile, recruitment of new businesses suffered, existing ones were leaving town and the EDC’s investors were drying up, Cone said.

Cory Pool, chairman of the merger task force’s governance committee, noted, “During the recession, the delivery systems we had in place were not able to meet the challenge.”

Chris Yancey, a member of the merger task force’s finance and funding committee, put it more bluntly: “The business community realizes how important this (merger) is, because we let the ball drop in the last 10 years.”

Correcting that now falls to the Chamber and Economic Partnership, or CEP.

Advocates of the merger hired a Texas-based consultant, Tip Strategies, with knowledge of similar efforts in other parts of the country to help develop the plan for combining the chamber and the EDC.

In their report, the consultants related how vulnerable Marion County had been to the housing market crisis, and recommended a merger of the chamber and the EDC as the best way to climb out of it.

“Without this realignment, there is a distinct danger that a recovery cannot take place,” the consultants wrote.

“Individually, stakeholders cannot act on their own without undercutting the partnership,” the report said. The new agency “must be the central and driving entity for everyone concerned with growth and vitality.”

Kevin McDonald, chairman-elect of the EDC board, observed that the chamber and the EDC had, in the past, different missions.

The chamber, geared toward small businesses, excelled at communicating to its 1,700 members and advocating for their needs, while the EDC specialized in catering to big business.

The CEP will build on both skills.

“The chamber and the EDC have always worked well together, but they had different roles. We’ve got to get rid of some silos and have a unified voice. That’s what’s going to result from this,” McDonald said. “We’re going to take what’s good and make it better.”

The new organization will be headquartered at the chamber’s current offices near Ocala City Hall.

Pool explained that the EDC will be dissolved and that the group will be brought under the Chamber of Commerce.

The EDC was incorporated in its present form in 1995, but conceptually, as a recruiter of businesses for Marion County, the organization dates to 1958.

Putting things under the chamber’s umbrella was done because the state law mandates the organization and identities of local chambers of commerce in Florida, Pool said.

“It doesn’t mean anybody’s done anything right or wrong,” he said of the merger. “But people want change.”

The CEP is expected to be rolled out to the respective boards of the chamber and the EDC at a joint meeting scheduled for May 23.

Some details remain to be worked out. One is selecting a new leader.

The current leaders of the chamber and EDC — Jaye Baillie and Tesch, respectively — will remain in place as co-CEOs until July 1. That’s when a new director is expected to be brought on board.

McDonald said he is heading up a national search for a “world-class” person to take the helm.

Both Baillie and Tesch may apply for the post.

The fate of the rest of the staff for both groups is still being decided.

Another task to be completed is ironing out the structure and make up of a new board of directors. Cone did say the City Council and the County Commission will have a seat and the city and the county will each have a staff member in the CEP’s site.

The task force also must decide what to do with the EDC’s offices at the College of Central Florida.

“We’ve got one chance to get this right. We believe the we are building a sustainable organization, something that will be enduring,” said Cone. “The private sector has got to take the lead on economic development. The government cannot do it.”

By: Aaron Corvin
Via: The Columbian

Washington State University Vancouver career counselor Christine Lundeen works with student Annise Nassib on Wednesday at the Student Services Center.

A slow economic recovery is under way in the U.S., as employers enlarge their payrolls and the unemployment rate inches down.

For young job seekers, however, the numbers tell a different story.

While the federal unemployment rate is 8.2 percent, unemployment for 20- to 24-year-olds is 13.2 percent. In Washington state, the unemployment rate is 8.2 percent. By contrast, the jobless rate for 16- to 24-year-olds was 21 percent in 2011. That’s up from 11.8 percent in 2007.

While there are no equivalent unemployment data for counties, it’s likely that Clark County’s job market mirrors the statewide figures, according to Scott Bailey, regional economist for the Washington State Employment Security Department.

What is known about Clark County is that the number of jobs held by high school-age workers plummeted by 40 percent from the first quarter of 2009 to the first quarter of 2011, Bailey said. For those ages 19 to 21, the number of jobs in Clark County dipped by 11 percent in the same period.

The situation for young job seekers in Oregon is similar. The unemployment rate was 19 percent for 16- to 24-year-olds in 2011. That’s more than double the overall jobless rate, and it’s up from about 11 percent in 2007.

The numbers underscore the tough spot that an entire generation of young workers find themselves in: They face an economy marked by lower pay and fewer job prospects, experts say, and rising pressure to attend college to have a shot in an economy that increasingly favors the highly skilled.

More seekers than jobs

The long-term weak economy has favored employers with a wealth of qualified candidates, and has caused the most pain for the newest entrants to the workforce.

Employers usually lower wages when there’s an oversupply of job applicants. What’s more, they’re able to be choosy, hiring the most experienced job candidates while eschewing younger ones, according to Dave Wallace, senior economist for the state Employment Security Department.

“That’s where (younger workers) really lose out,” Wallace said.

And older workers are staying in their jobs longer and putting off retirement, according to Guy Tauer, a regional economist for the Oregon Employment Department.

College grads in demand

Before the recession, younger workers filled a lot of Clark County’s production and construction jobs, Bailey said. Those low-skilled, entry-level positions were the first to be vaporized by the nation’s economic spiral.

In fact, some experts say a fundamental shift in the economy is well under way, where the U.S. labor market is increasingly open to only those who possess a college education.

In 2011, Jon Roberts, principal of Austin, Texas-based TIP Strategies, who oversaw development of a new economic development plan for Clark County, publicly urged regional leaders to boost Washington State University Vancouver’s role in creating economic growth.

He cited data showing that the jobless burden in the U.S. is shared unevenly. People who lack a high school diploma are experiencing a jobless rate of 13.7 percent, while 7.4 percent of those with college degrees are unemployed.

“Any region that isn’t committed to higher education and higher education training is likely to suffer significantly high unemployment,” Roberts told a gathering of more than 300 people at The Heathman Lodge in Vancouver.

David Autor, professor of economics at Massachusetts Institute of Technology, told Bloomberg.com that the U.S. workplace is polarizing between the education haves and have-nots.

And more jobs — even if they’re blue-collar jobs such as auto repair — will require some kind of college or post-secondary training, Anthony Carnevale, director of the Georgetown University Center on Education and the Workforce, told the Philadelphia Inquirer. “The only thing more expensive than going to college is not going. Kids are damned if they do, damned if they don’t.”

Employers say they will hire 10.2 percent more new college graduates in 2011-12 than they did in 2010-11, according to a survey released in March by the National Association of Colleges and Employers.

That’s a slight increase over employers’ initial projection — 9.5 percent — “and marks the second consecutive year in which employers have adjusted their hiring expectations upward,” the survey said.

That’s “encouraging data” for new or soon-to-be college graduates, including those at WSUV, said Christine Lundeen, the branch campus’ career counselor.

Lundeen said she began her job about 3 years ago, when the economy was in a tailspin. Since then, she said she has noticed an increase in the number of employers showing interest in WSUV students.

“It’s definitely been encouraging,” she said. “Every year, I have more and more employers contacting me to post jobs and internships.”

No guarantees

However, as the national survey shows, a college degree hardly guarantees landing a job. Competition is high: About 32 new college graduates are expected to apply for every job posting during the 2011-12 recruiting year, according to the survey. That’s up from 21.1 applicants for every job posting during the 2010-11 recruiting year.

And that’s all the more reason for college students to get aggressive about reaching potential employers rather than just passively searching online, Lundeen said.

In fact, she said, campus leaders are encouraging students to get some experience, via internships and other programs, in the fields they’re pursuing while they’re still in college.

College departments are teaming with community organizations and business leaders to bring real world issues into classrooms, Lundeen said.

Students are taking the initiative, too, she said. One WSUV student group focused on accounting, business and finance recently secured a visit to campus by two potential employers: the Federal Bureau of Investigation and the Bonneville Power Administration.

In an economy that still has weak spots, Lundeen said she’s noticed students becoming increasingly aware that a college degree, while an important key to unlocking the labor market, isn’t necessarily a sure lock on a job.

“There’s definitely been an increase in the use of services,” she said of the career and networking advice her office provides. “The word’s getting out; it’s a tough market, and you need to be developing the best résumé, thinking about job-searching strategies and networking.”

Lundeen added, “The campus as a whole is really pushing to get students experienced in their field before they leave.”

By: Molly Bryant
Via: The Pampa News

Consultants from TIP Strategies, Inc. unveiled the Pampa Economic Development Corporation’s (PEDC) plan to energize economic growth in Pampa during a meeting yesterday at 3 p.m. at the Pampa Chamber of Commerce.

The plan identifies the vision for Pampa as “the premier destination for the northeastern Panhandle, offering a diversified energy economy, expanded educational opportunities and excellent community assets that will retain and attract a talented workforce.”

“We toured the community several times and went through the Pampa Energy Center, but also went through other sites in the area,” said Tom Stellman, president and CEO of TIP Strategies.

via TMASC
Opportunity grows in the region

New TMASC report in development
On November 19, 2008, Bexar County Economic Development held its inaugural Texas-Mexico Automotive SuperCluster (TMASC) Conference in San Antonio, Texas. Bexar County created TMASC that year to leverage the changing geography of automotive assembly and automotive markets in North America. TMASC would capitalize on changes in the industrial landscape by building upon the region’s numerous global vehicle and heavy equipment manufacturers, hundreds of Tier 1 original equipment suppliers, and world-class innovative assets. This first look at the region was facilitated by an excellent benchmark study conducted by TIP Strategies, Inc.

Late last year we engaged TIP Strategies to take a look at the region again and create an updated report. The finalization of that report is currently underway. Meanwhile, here’s a snapshot of the TMASC region as we saw it three years ago.

TMASC, circa 2008
Heading into 2009, the TMASC region was home to the final assembly plants of nine global manufacturers. These plants employed more than 18,000 workers and were capable of producing almost 900,000 units per year. The region also had over 200 Tier 1 supplier plants, which employed over 133,000 workers.


TMASC, circa 2011
As of the end of last year, the TMASC Region was home to seven automotive assembly plants and parts plants, employing over 17,000 workers and capable of producing over 800,000 units. The region also contained six commercial and military vehicle manufacturing plants.

Over the last few years, TMASC’s scope has broadened to reflect the region’s additional heavy equipment and commercial vehicle manufacturing activity as well. Heavy equipment manufacturers in the region include Caterpillar, John Deere, and Manitou, which together have seven plants in the region. There are also two specialty vehicle manufacturers: Skyline, which manufactures recreational vehicles, and Frazerbilt, which manufactures emergency response vehicles.


Growth hasn’t come in the form of new plants only. In 2010, Toyota invested $100 million to add a Tacoma production line at its plant in San Antonio. Moreover, yesterday GM announced its continued expansion in the region with a new $200 million metal stamping facility at their plant in Arlington. The new operation will create 180 jobs and save GM an estimated $40 million each year is logistics costs.

Regional roll out coming later this quarter
Once the new TMASC report is finalized, we will be sharing it via the TMASC website, as well as through special presentations to selected TMASC partners throughout the region. We look forward to providing an updated vision of the region to our TMASC communities and stakeholders this quarter, and to exploring new collaborations like we did last week with the Capital Area Economic Development District committee of the Capital Area Council of Governments (CAPCOG). To schedule a presentation, please contact us. We are excited about the many opportunities 2012 will give us to increase advanced manufacturing assets and activities in the region.

Via: Austin Business Journal

Jon Roberts, a principal at Austin-based TIP Strategies Inc., thinks trading incentives to bring more Apple Inc. jobs to the city is a bet on the future between Austin and the company.

The governor’s office announced Friday that Apple (Nasdaq: AAPL) will expand its Austin footprint with a $304 million campus that will create 3,600 new jobs.

The bet is that the Cupertino, Calif.-based tech giant will continue its expansion in Austin, creating a much richer job mix than it is currently offering.

“In essence, you are buying the brand,” Roberts told the Austin American-Statesman.

The Statesman has more on the story.

By: Kirk Ladendorf, American-Statesman Staff
Via: The Austin American Statesman

Apple Inc. is proposing to bring 3,600 jobs to Austin over the next decade or so, but those jobs aren’t especially high-paying by the standards of other tech companies in the area.

The average wage of the Apple jobs would be about $64,000 a year, according to an estimate by the City of Austin. Those are above the average wages in Austin but well below what tech companies pay workers with tech skills.

Last year, eBay and its PayPal affiliate agreed to create 1,000 jobs in the city over a decade with an annual pay starting at nearly $107,000 the first year. The Greater Austin Chamber of Commerce has estimated that the average annual high-tech salary in Austin is more than $90,000 a year.

The difference is in the kinds of jobs the two companies are proposing to create. PayPal and eBay are planning technical and software development jobs, while Apple is proposing sales, customer support and accounting jobs, which generally pay less.

State and local governments are preparing to offer hefty incentives to Apple for the new jobs. The state is offering $21 million over 10 years from the Texas Enterprise Fund. The City of Austin is proposing to offer a grant of $8.6 million over 10 years. Travis County hasn’t said what it is offering, but County Judge Sam Biscoe said its offer to Apple will be “substantial.”

The city and state together offered $4 million in incentives to eBay.

“To me, the level of incentives is a pretty generous package,” said Jon Roberts, a principal with TIP Strategies Inc. of Austin, which consults on economic development strategy.

The incentives, Roberts said, represent a bet that Apple — the richest company in high-tech — will keep expanding in Austin and over time potentially create a richer mix of jobs than it is currently proposing.

“In essence, you are buying the brand,” Roberts said. The city and state are taking the risk that Apple, which is right in the heart of the emerging market for mobile Internet services and mobile commerce, will keep growing in Central Texas and keep adding even better-paying jobs in the future.

“Once you accept the idea of incentives, I think it is a pretty good bet on Apple,” Roberts said.

Apple is proposing to invest about $304 million to build and equip a 38-acre business campus in Northwest Austin at West Parmer Lane and Delcour Drive. The new campus would be close to Apple’s main campus in Austin, where most of the company’s 3,500 workers in Central Texas are.

Apple’s new jobs in Austin are expected to resemble its current ones, which include accounts receivable specialists, business analysts, business data analysts, credit collection representatives, enterprise sales representatives, data mining scientists, logistics analysts and payroll tax accountants.

Apple, which is secretive about its operations, does not talk openly about the kind of jobs it has here, but the hiring section of its website has listings for those kinds of jobs in Austin.

But Apple is hiring technical workers in Austin as well, often for chip design-related work. Apple, in 2010, bought Austin’s Intrinsity Inc., a chip design firm that worked on low-power processor designs. Industry analysts believe that the former Intrinsity operation has been expanded and is one of the central locations for design of the low-power processors that go into Apple’s smartphones and tablets.

Analyst Patrick Moorhead with Moor Insights and Strategy said he expects Apple to add more engineers in Central Texas even as it builds its new operations center.

“Once Apple realizes they have a place for high-quality engineering talent at an affordable price and (workers) can keep secrets, they will move more high-level engineering jobs here,” Moorhead said. “They are a secretive company, and they would never say that, and they don’t want people to know that would happen.”

Under its proposed agreement with the city, Apple would spend at least $56.5 million on building and equipping a phase one expansion that would employ 650 workers by the end of 2015. The company also would agree to a phase two expansion, investing an additional $226 million that would create 2,985 more jobs. If Apple did not meet its expansion targets, the city incentive payments would be scaled back.

Kim Butler, head of Greywolf Consulting Services in Austin, which does technical recruiting, said the proposed new Apple jobs in Austin might not be the highest paying in the tech sector, but they will add to the local economy.

“An economic recovery doesn’t only occur at one level of income or another; it has to happen across a broad level of income levels,” Butler said. The proposed Apple expansion “is tremendous news for the city of Austin.”

Brian Kelsey, an economic consultant, agreed. “It is a huge endorsement for Austin’s economy and its workforce. It’s a hugely positive sign for us.”

Contact Kirk Ladendorf at 445-3622