TIP Strategies is a privately held Austin-based economic development consulting firm committed to providing quality solutions for public and private‑sector clients.
This blog is dedicated to exploring new data and trends in economic development.
By: Jon Roberts, principal, and John Karras, senior consultant, TIP Strategies
What does it mean to be a global city? TIP has been pondering this question since we were engaged to lead a team of consultants charged with preparing a new strategy for the City of Fort Worth.
The question elicits different ideas for different people. For some, a global city is defined by its cultural assets: world-renowned museums, a ballet, the opera. For others, it’s a label reserved for cities that embrace a range of cultures, evidenced by the number of languages overheard on the street and the variety of cuisines reflected in the city’s dining options. Compelling architecture, recognizable landmarks, and a robust transportation system are often cited as necessary conditions by urbanists, while industry specialization and employment opportunities would be top of mind for economists.
The question of image is also relevant here. At some level, does the “global city” designation require that we have some shared notion of the place, derived from a mix of history, film, and word-of-mouth? Paris instantly conjures specific images: the Eiffel tower, fine dining, fashion. There are other cities that have an equally long history or are similar in size or economic importance but have failed to find a place in our collective imaginations.
While there are volumes of research around this question—and no lack of opinions—we place emphasis on three areas: trade, talent, and tradition. By looking at the strength of the traded sector (this includes export-oriented industries that trade in physical goods as well as ideas), the ability to attract and retain creative individuals, and what it means to leverage the heritage of a community, we see the building blocks of a dynamic strategy.
Over the next several months, our team will be engaging community leaders around a vision for Fort Worth that encompasses these elements. While the city’s “Cowboys and Culture” tagline broadens the traditional appeal, there is much more at play. With assets such as Alliance Airport, Sundance Square, and a growing medical sector, the question for the city’s immediate future seems to be less about whether the community will be successful and more about what form that success will take. The longer-term focus then must be more directly on how Fort Worth—separate from Dallas or the rest of the region—can become a global city. Stay tuned to learn more about our work in Fort Worth.
By: John Karras, senior consultant, TIP Strategies
Spanning more than 8,000 square miles of mountains, valleys, and desert landscapes, Kern County, California, encompasses a diverse group of communities and assets. Comprising more than 3,000 square miles—roughly one-third of the total—the county’s eastern portion is larger than the combined land mass of Delaware and Rhode Island. The region contains three incorporated cities (California City, Ridgecrest, and Tehachapi) and three unincorporated communities (Boron, Mojave, and Rosamond.) East Kern’s economy is driven primarily by two military installations (Naval Air Weapons Station-China Lake and Edwards Air Force Base) and the Mojave Air & Space Port and Rio Tinto Minerals. East Kern is also closely linked to the greater Los Angeles economy, especially the communities of Lancaster and Palmdale.
To help capitalize on its unique advantages, Kern County engaged TIP to lead the preparation of an economic diversification plan for East Kern County. Over the course of a 12-month planning process, TIP worked with Kern County and key partner organizations including the Kern Economic Development Corporation (EDC) and the East Kern Economic Alliance (EKEA) to create a bold and comprehensive set of strategies to accelerate economic development in East Kern. Chabin Concepts, a California-based economic development consulting firm, assisted TIP and Kern County throughout the project. The plan was recently featured at the 17th annual Kern County Economic Summit during a panel discussion with three of the region’s major employers: Naval Air Weapons Station-China Lake, Edwards Air Force Base, and Rio Tinto Minerals.
The plan calls for several new and aggressive initiatives to grow the regional economy. Some of the most promising strategies include:
- A targeted effort to work with the Mojave Air & Space Port to expand existing businesses and recruit new companies to the region, including aerospace product manufacturers, service providers, and research and testing firms.
- New partnerships with the region’s military installations, higher education institutions, and other stakeholders to encourage innovation and entrepreneurship activity.
- Packaging the region’s diverse menu of outdoor recreation and tourism assets to attract new visitors and talent into East Kern.
In addition to the regional diversification plan, TIP created strategic plans that respond to the unique opportunities and challenges facing each of the region’s six communities. The plan also formalizes the role of the East Kern Economic Alliance (a collaborative group of local economic development partners convened by the Kern EDC) and lays a foundation for additional resources for implementation. The Alliance is now working to pursue additional implementation funding from the Office of Economic Adjustment (OEA) to move these initiatives forward with dedicated staff. TIP is hopeful East Kern will follow a similar path of another client community that recently received OEA implementation funding: the Fort Campbell region of Tennessee and Kentucky.
By: Alex Cooke, senior consultant, TIP Strategies
Last fall, TIP was engaged by the Delaware Business Roundtable (DBRT), a group of more than 50 Delaware CEOs, to craft a strategic framework for pursuing a new long-term approach to economic development in the state. The work was commissioned as a private-sector response to concerns about Delaware’s economy as the state struggles to contend with the dramatic restructuring of traditional industry clusters, increased competition for jobs and investment, and the lasting effects of the Great Recession. The final product, the Delaware Growth Agenda, was released by the DBRT in July.
The Growth Agenda’s recommendations grew, in part, out of discussions with dozens of business leaders and citizens throughout Delaware. One of its key recommendations is to establish a new public-private partnership to lead the state’s economic development efforts. This initiative is seen as critical to reengaging the private sector more directly in economic development and reinvigorating the state’s program through expanded resources, expertise, and networks. Additionally, the growth agenda calls for building on and accelerating existing initiatives to create a world-class entrepreneurship ecosystem in Delaware.
Additional information about the Delaware Growth Agenda is available through the DBRT’s website. The Delaware Business Times also detailed our work with the DBRT. Click here to read their article, “Delaware Growth Agenda: State must pursue new long-term approach to economic development over next five years.”
By: Jon Roberts, principal, TIP Strategies
This month, Jon Roberts had the honor of providing the closing address at the 58th Annual Missouri Governor’s Conference on Economic Development in Kansas City. The three-day conference explored the themes of innovation and creativity, with a strong emphasis on technology and the arts. Jon’s presentation focused on the effects of disruptive technology in transportation, especially the advent of autonomous vehicles. A cameo can be seen in the video recap, which also provides a flavor of the event overall.
In addition to the Missouri Governor’s Office, a number of organizations had a prominent role in making the conference a success. Special mention goes to Department of Economic Development Director, Mike Downing, and the staff and leadership of the Missouri Partnership for their contributions to the event.
This year was Jon’s second appearance at the annual event, having been a featured speaker at the 2014 conference, along with Thomas Friedman of the New York Times. The repeat invitation was a distinct honor and reflects TIP’s long relationship with the State of Missouri. Examples of our work in the state include engagements in Jefferson City, Christian County, Iron County, and Columbia.
The conference also offered a chance for Kansas City to showcase its booming tech and arts districts. In fact, the city deserves special recognition for its commitment to innovation and creativity. For a community whose future was once far from certain, the city has made great strides in establishing itself as a major Midwestern technology hub. Kansas City’s progress is especially apparent in its success supporting young entrepreneurs and embracing the creative spaces they have re-developed in the downtown.
The growing role of downtown as a nexus of economic activity for the region is reflected in recent sales tax data from the Kansas City Finance Department. The data reveal that sales tax collections generated within the city’s streetcar taxing district, located in the heart of downtown, far outpaced the city’s overall growth rate, increasing by 58 percent from FY 2014 through FY 2016, compared with just 16 percent citywide. Officials point to new business growth, an increased number of downtown residents, and bigger crowds in the city’s Power & Light entertainment district. What is even more significant is the fact that the increased collections occurred even before the new streetcar line opened on May 6, 2016.
TIP’s interest and involvement in innovation districts and tech centers is central to our mission. Whether in smaller communities such as Asheville and Green Bay, or in larger cities such as Las Vegas and Seattle, we are committed to seeing talent recruitment and technology fuel economic growth. Kansas City fits that profile perfectly.
By: Jon Roberts, principal, TIP Strategies
On April 21st, TIP principal Jon Roberts and urban studies theorist Richard Florida gave complementary presentations at the 2016 EDiS Institute, a biennial economic and industry update event held by Wilmington-based construction and development firm, EDiS. The Institute is a half-day forum which examines important industry topics, including increasing communication with vocational education institutions and encouraging high school students to choose construction-related careers. Previous presenters have included chief economist of Moody’s Analytics, Mark Zandi; architect Andres Duany; Robert F. Kennedy, Jr.; and former head of the Congress for the New Urbanism, John Norquist.
The Institute’s speakers offer provocative views on future trends and their potential impacts on Delaware and the nation. These forward-thinking discussions have yielded striking results, including an accurate prediction of the impending recession in 2007. Carrying the tradition forward, Jon and Richard examined the future of manufacturing employment in 2016. This topic is particularly relevant as the State of Delaware continues its transition away from traditional manufacturing companies. The imminent merger between DuPont and Dow Chemical make this an even more pressing concern. Jon’s presentation provided insight on Delaware’s current competitive position and suggested creative solutions for addressing the state’s economic challenges. Richard’s presentation focused on building an entrepreneurial economy for Delaware.
Jon’s participation in the Institute coincides with TIP’s work in the state. In the fall of 2015, TIP Strategies was commissioned by the Delaware Business Roundtable to prepare a statewide strategy for economic growth and prosperity. The soon-to-be-finalized Delaware Growth Agenda offers a set of long-term strategic recommendations to guide the state’s economic development program over the next five years.
By: Alex Cooke, senior consultant, TIP Strategies
TIP recently completed an engagement for MassDevelopment, the Commonwealth of Massachusetts’s economic development and finance agency, to develop a Defense Industry Economic Diversification Study and Strategic Blueprint. MassDevelopment applied for and received a grant from the Department of Defense, Office of Economic Adjustment (OEA) to create the blueprint, which is designed to mitigate the potential impact of federal defense budget cuts and sequestration on the state and regional economy. Supporting TIP on this project was a consulting team consisting of UMass Donahue Institute’s Economic and Public Policy Research group, Chmura Economics & Analytics, and Business Development Advisors.
The planning process included stakeholder meetings with representatives of businesses, industry groups, agencies, and institutions throughout Massachusetts to gather ideas and expertise to inform the plan. Through these meetings, a number of specific initiatives were identified to assist defense-dependent businesses in diversifying and commercializing their products/technologies, providing skills training for employees, and improving their manufacturing processes and products.
To secure needed funding to launch the pilot initiatives and determine their effectiveness, MassDevelopment submitted implementation grant award requests to OEA before the blueprint was even completed. In all, MassDevelopment received over $3.6 million from OEA to fund five initiatives. These initiatives include assisting small manufacturers and R&D firms to commercialize their products and technologies and diversify their business portfolios, providing consulting services and technical assistance to small manufacturers, and helping defense-related firms export their products/services. The successful implementation of these and other initiatives proposed in the blueprint will serve to strengthen the Commonwealth’s defense sector and enable it to seize emerging opportunities, both commercial and defense related.