As part of our 30-year celebration, this is the third in a four-part series that looks at TIP’s influence on topics that matter in economic and workforce development—and where we see talent, innovation, place, and implementation heading next.

Economic developers are facing a whirlwind of new opportunities and challenges. Data centers, AI and quantum computing research, and defense and security technologies are dominating conversations in city halls, chambers of commerce, and economic development boardrooms. At the same time, communities are navigating an uncertain economy, resourcing challenges, and heightened expectations from residents and employers alike.

In this environment, it is tempting to prioritize immediate, short-term recruitment wins. But communities cannot afford to overlook long-term demographic realities. The national labor shortage—well documented by The Conference Board, the US Chamber of Commerce, and others—will continue to pressure local economies. Communities are no longer competing only for industry investments; they are also competing for people.

High-performing communities understand that short-term gains matter but cannot come at the expense of broader strategies. Sustained economic vitality requires a comprehensive approach that prioritizes placemaking. A community’s ability to attract and retain talent and to spark innovation depends as much on its quality of place as on its business climate.

A Framework for Advancing Place

TIP has long understood placemaking as one of three interconnected factors at the core of economic success: Talent, Innovation, and Place. Devised over 20 years ago, this framework helps communities build a more complete picture of competitiveness, rather than focus only on the transactional aspects of deal-making.

Through this framework, TIP has led in the economic development field by consistently advancing the idea that:

• Talent strategies fall short if communities lack the amenities, housing, and environments that people want.
• Innovation thrives only in places where entrepreneurs, researchers, and companies can connect and collaborate.
• Place—the character, vibrancy, and inclusiveness of a community—is not a byproduct of growth but a driver of it.

The responsibility for quality of place cannot be relegated to groups viewed as less business-minded or less transaction-driven. It is a competitive factor in its own right, shaping the ability of communities to retain and attract talent, sustain innovation, and weather demographic challenges.

What has set TIP apart during our 30 years in business is our ability to leverage strategy to help build community as well as plans. Placemaking is often seen as the domain of arts organizations, downtown associations, or city planners, but TIP has always treated it as central to the planning process. Our high-touch, collaborative approach doesn’t just design strategies. It forges partnerships and builds trust among stakeholders who might not otherwise engage, strengthening the social fabric as a foundation for long-term economic success and plan implementation.

Placemaking in Practice

• In West Virginia, TIP’s strategic plan for the Charleston Area Alliance (CAA) positioned entrepreneurship and placemaking as integral to the city’s economic vitality. The 2024 plan emphasized building blocks of a strong innovation ecosystem—such as incubators, coworking spaces, and small-scale manufacturing hubs—while also reinvigorating downtown. Guided by this vision, CAA established an artisan incubator that provides entrepreneurs and makers with affordable space and a supportive community, along with a new co-working space. Charleston was also recently selected as the sixth city in the Ascend WV program, which offers incentives for remote workers. Together, these initiatives have created momentum around downtown revitalization and talent attraction. By embedding quality-of-place investments into its economic strategy, Charleston demonstrates how communities can leverage placemaking to enhance competitiveness and foster long-term growth.
• Through the National League of Cities’ Economic Development Summit Pilot Program in 2019, the Mid-America Regional Council (MARC) sought to bring local leaders together to address one of the region’s most pressing quality-of-place challenges: housing. Aging stock in the first suburbs and limited affordable options had created a mismatch between what was available and what today’s workforce needed. By framing housing as an economic development issue and not just a planning or social services concern, TIP worked with leaders to connect the dots between workforce attraction, business competitiveness, and neighborhood vitality. The effort demonstrated how cross-jurisdictional strategies could address a regional challenge and set the stage for coordinated solutions. In doing so, Kansas City showed how rethinking foundational elements like housing can strengthen quality of place and, ultimately, long-term economic resilience.
• Regional leaders in North Iowa came together under Vision North Iowa, a strategy led by TIP to unite more than a dozen communities around a shared prosperity agenda in 2017. The initiative marked a turning point in how local leaders engage the broader community in decision-making by fostering a culture of transparency and shared responsibility. That approach proved essential in building support for two bond referendums authorizing a combined $32 million to fund a multipurpose arena, as well as the Music Man Square Complex and Hotel, Skywalk, and Performing Arts Pavilion. Young professionals stepped up as ambassadors, making the case that the investment would transform downtown Mason City. Both measures passed with 75 percent approval. The bonds have catalyzed a wave of reinvestment that continues to reshape the city’s core. Vision North Iowa demonstrates how investing in place can spark both physical renewal and a deeper sense of community ownership.

Looking Ahead

In the early years of my career, more than 25 years ago, economic development was widely understood to be about “deals.” For a time, I shared that perspective. But as I studied high-functioning economies, I noticed something striking. They consistently invested in quality of life. Deals mattered, yes—but they were not the only story.

Today, communities that excel at placemaking are those that take a broader view. They understand that thriving economies depend on more than transactional wins. They invest in:

• Arts and culture: Creative sectors bring energy, attract talent, and elevate a community’s identity.
• Tourism and recreation: These assets not only draw visitors but also create amenities for residents.
• Public spaces: Parks, gathering places, and vibrant districts help reduce social isolation and foster belonging.
• Housing and infrastructure: Adequate, affordable options remain central to sustaining a diverse and stable workforce.

The importance of physical spaces has only grown as more aspects of daily life shift online. Communities are grappling with what some describe as an epidemic of loneliness. While that language may feel far removed from traditional business attraction or site readiness, the underlying reality is this: people need connection. They seek out places where they can belong—to a neighborhood, to a downtown, to a region. Economic developers have a role to play in shaping these environments, ensuring that investments in physical spaces also strengthen the social fabric.

One of the challenges ahead will be measurement. Traditional metrics—jobs, investment, tax base—are tangible and familiar. The benefits of placemaking, such as strengthened community cohesion or reduced loneliness, are harder to quantify. But the absence of easy measurement does not diminish their importance. Communities that stay committed to these long-term priorities will be positioned to succeed.

A Call to Action

As practitioners, we should challenge ourselves to identify and champion successful placemaking efforts. Where have communities found creative ways to elevate quality of life? How are they linking arts, culture, housing, and infrastructure into cohesive strategies? What lessons can we share that help others bridge the gap between short-term gains and long-term vitality?

Place is not a luxury. It is a necessity. Communities that embrace placemaking as part of their economic strategy will build the resilience needed to face demographic shifts and market disruptions. Those that dismiss it risk falling behind.