Tech Talk: Be Part of the Talent Solution

You don’t need anyone to tell you about the workforce/talent challenges that companies across the state are facing. The tech and innovation sectors, of course, are not alone in dealing with this dilemma.

Solutions must be both short and long term. Think coding schools and other training opportunities as more immediate; reaching deeper into the K-12 system to introduce potential careers at an earlier age as being on the other end of the spectrum.

But a message we’ve shared, no matter the business or industry, is to be part of that solution. Don’t just point out the problems. Don’t blame others unless you’re willing to help produce answers.

One way that everyone can contribute is to Share Your Road. It’s not just a phrase, but a coordinated initiative to introduce young people to the possibilities and what they can and should be doing to help reach those career destinations.

The Indiana Chamber Foundation and Indiana INTERNnet are among the Share Your Road partners, part of the Roadtrip Indiana initiative that sent three students on the road earlier this year. A public television series in 2018 will highlight what they learned.

See some of those who have helped pave the way thus far and take the time to inspire others at https://indiana.shareyourroad.com.

Share Your Road

Tech Talk: Getting the Most From Your Marketing Firm

EDITOR’S NOTE: Jim Walton is CEO of Brand Acceleration, Inc., which focuses on economic development marketing. Jim’s tips, however, can apply to all company-marketing partnerships. Learn more at www.brandaccel.com.

After working in the advertising and marketing industry for several decades, I can tell you that there remains a lot of confusion about what a marketing firm or ad agency does. For many, the notion is that such firms are made up of purple-haired, bearded designer types with tattoos and flip-flops. Admittedly, there are some of those, but today’s successful marketing firms offer much more than just design.

So, how do you select a marketing firm? What skills and characteristics do you look for? Once selected, how do you make the partnership work? Here are a few pointers:

It’s a partnership
The first thing the client (economic developer) needs to remember is that it’s a partnership relationship. Great marketing firms work as part of your marketing team, not just as a vendor who is there to take orders and design stuff. They assume an ownership role in you and your community. They’re in it for the long haul.

Think big picture
Great organizations, including economic development organizations (EDO), have a well-thought-out set of goals, setting forth their vision for the community’s future. From the first day, the EDO should get the new marketing firm involved with the visioning, making them part of the team, and sharing the vision. This is not the time to hold back or to be secretive.

The marketing firm should provide depth and counsel
Have you ever hired a designer to create a new brochure or website, just to find that you spend much of your time teaching him or her about economic development? Maybe you even have to do all the copywriting because the designer doesn’t write.

A great marketing firm should know your industry and your audiences as well, or better, than you. Do they know any site selectors or real estate professionals? Have they ever visited c-suite offices or interviewed corporate executives about their expectations of marketing tools? To save yourself a lot of aggravation, seek out a marketing firm that knows your audiences. They should also demonstrate a deep knowledge of marketing principles. From start-to-finish, the marketing firm should know and be able to communicate your story.

Get them involved early and often
Let’s say your organization wants to target the food industry, and you’re considering ways to reach out to people in that industry. From that very moment, that’s when you should get your marketing firm involved. Rather than simply cranking out a food industry brochure, the marketing firm, working as your partner, will help flesh out important considerations and provide ideas for ways to successfully reach the audience with the right message.

Be open to new ideas
Coming off point number four, you should always be open to new and different ideas. A marketing firm with broad experiences may bring you a suggestion that you never considered. They will also offer suggestions that are more in tune with the big picture (point number two).

Cheaper isn’t necessarily better
We are often asked what our hourly rate is, as if a lower rate means a cheaper final product. It doesn’t. If a vendor has a low hourly rate, there’s probably a good reason for that. Instead, you should look for a firm, fixed price that won’t change unless the scope of work changes. That way, you’ll know how much to budget.

What services do they provide, and which ones do you need?
Some agencies offer a very narrow line of services, like web design. Others offer a much broader list, such as media planning and buying, public relations, video production, workforce attraction marketing, event planning and management, etc. It’s unwise to limit yourself by selecting a firm that is unable to grow with your needs.

Be responsive
Working with a marketing firm does not mean that all the burden is on their shoulders. They’re going to need your input to get work done, especially if the work is on a deadline. You’ll be asked to proofread work and answer numerous questions to be sure it meets your expectations. It’s important to respond right away.

By making your marketing firm a trusted partner in your community economic development marketing effort, you’ll have a much greater likelihood of success. Hire the best, and you’ll experience truly positive results.

2016 Legislative Returns on Indiana Chamber Investment

in chamberThe 2016 General Assembly saw the Chamber advocate for and achieve numerous public policy victories that will have a lasting positive impact on the state’s economy and the prosperity of its residents. Additionally, the Chamber defeated several measures that would have cost businesses over $200 million.

In total, the Chamber’s work yielded savings of $1.435 billion for Hoosier businesses OR $546 per employee. Specific savings are listed below by bill and subject matter, in total and per employee. Also noted is the indeterminable value of a vital policy area: education and workforce development; the majority of which cannot be quantified.

Business Savings:
$1.435 billion or $546 per employee

Civil Justice
– Reasonable and controlled increased medical malpractice limits (SEA 28):
$50 million; $19.02/employee
– Restrictions on legal practice known as “lawsuit lending”
(HEA 1127): $40 million; $15.21/employee

Economic Development and Infrastructure
– Supplemental distribution of local income tax for local infrastructure (SEA 67): $400 million; $152.13/employee
– Short-term road funding and allowance for additional Regional Cities initiative (HEA 1001): $300 million; $114.10/employee
– Defeated – Unreasonably high data breach fines (HB 1357): $10 million; $3.80/employee

Employment and Labor
– Prohibition against ordinances restricting employee scheduling (SEA 20): $75 million; $28.52/employee
– Defeated – Option for prevailing wage (SB 319 and SB 346): $50 million; $19.02/employee
– Defeated – Mandated paid leave policies (HB 1139 and HB 1328): $30 million; $11.41/employee
– Defeated – Mandated increases in minimum wage (HB 1265): $25 million; $9.51/employee
– Defeated – Loss of business license for employing unauthorized aliens (SB 285): $25 million; $9.51/employee
– Changes to unemployment insurance procedures (HEA 1334): $20 million; $7.61/employee

Energy and Environment
Long-term water infrastructure maintenance funding (SEA 257 and SEA 383)
$100 million; $38.03/employee
More efficient solid waste handling (SEA 256 and SEA 366) $20 million; $7.61/employee
Underground tank remediation fund (SEA 255) $10 million; $3.80/employee
Planning future water usage needs (SEA 347) $10 million; $3.80/employee

Health Care and Insurance
– Prescribing authority for telemedicine (HEA 1263): $80 million; $30.43/employee
– Codification of Healthy Indiana Plan 2.0 (SEA 165) $70 million; $26.62/employee
– Defeated – Mandated health insurance coverages (SB 370) $25 million; $9.51/employee
– Defeated – Provisions for prescription drug requirements (HB 1390) $25 million; $9.51/employee

Taxation
– Repeal and replacement of commercial assessment mandates (HEA 1290)
$40 million; $15.21/employee
– Defeated – Egregious income tax reporting provisions (SB 323) $30 million; $11.41/employee

Total Savings for Indiana Business: $1.435 Billion
Total Savings Per Employee: $546

Your Return on Investment
10 employees = savings of $5,460
25 employees = savings of $13,650
50 employees = savings of $27,300
100 employees = savings of $54,600
200 employees = savings of $109,200
500 employees = savings of $273,000

Plus the Value of Education and Workforce Development Initiatives:
The Indiana Chamber also played a leading role in the development and passage of important education and workforce development legislation. While difficult to quantify the specific fiscal impact of these changes, we know from economic research, economic development professionals, site selection consultants and our own membership the importance of these matters to the cost of doing business. Thus, we note the important accomplishments in education and workforce development as a significant – albeit unquantifiable – return on investment.

IMPORTANT NOTES: Business impact calculations are based on fiscal impact estimates of the Legislative Services Agency, independent studies, other available data and research materials, and Indiana Chamber analysis. Business impact per employee is calculated by using the estimated number of employed workers statewide in March 2016 (2,629,300).

Legislative Testimony: Sunday Alcohol Sales

BThe Indiana Chamber’s Cam Carter testified today in support of Sunday liquor sales, but opposition to the amended House Bill 1624 by Rep. Tom Dermody (R-LaPorte).

The Indiana Chamber of Commerce supports the retail sale of alcoholic beverages for carryout on Sunday – for ALL classes of licensed retailers. We believe this would improve Indiana’s business climate and be a big win for consumers who want to see this modest and common sense change to existing law. A law that has remained on the books for far too long. A debate, in our estimation, that has gone on for far too long – and we are not alone in this opinion. Polling shows a growing majority of Hoosiers want this change.

You have the power – and the responsibility – to bring this change about by passing Sunday sales. However, to do so, you must craft a compromise between the liquor stores who have fought this change year after year after year, and other retailers, “big box” or otherwise, who have sought this change for just as long.

We supported the introduced version of HB 1624 and still do. We were encouraged when we heard rumors about a “compromise” on this issue; indeed one media outlet reported that a “compromise” had been reached. We began to rejoice.

But, then we saw the chairman’s amendment and we knew that no such compromise had been reached. Indeed, we were not invited to a negotiation. A negotiation between two liquor stores or their lobbyists is not a compromise.

To have a true compromise, you have to have two sides agree on something. Yet, the two sides on this issue agree on nothing. In fact, their roles have reversed since the introduction of the amendment with liquor stores now quoted in the media as supporting it and historical supporters of Sunday sales opposing it.

Why this sudden role reversal? Sometimes to ask a question is to answer it. So, with all due respect, the amendment under consideration today falls short of being a good faith effort at a workable compromise. It is objectively one-sided with all of the burdens placed on one class of alcohol retailer to their competitive disadvantage. And, that class is every single retailer that is NOT a package liquor store.

Under the amendment, liquor stores change nothing about their business model except they can now open on Sunday, if they choose. Their competitors? They have new, unacceptable regulations placed upon their stores, their personnel, and most importantly their customers.

Anyone with any familiarity with the Sunday sales issue had to know that this amendment would be unacceptable. The cost of retrofitting retail stores alone will run to at least $50-$60 million by conservative estimates and will affect all non-liquor store retailers large or small, big box or mom-and-pop. Some may be unable to comply with the provisions of this amendment at all.

Retrofitting is only the beginning of the economic costs represented by this amendment. Consumers will not stand for turning back the clock some 40-50 years and moving distilled spirits back “behind the counter”; that model of retailing can be seen at the Hook’s Museum and that is rightly where it belongs – in a museum.

Today’s consumers will revolt at being forced by you, elected members of the Indiana General Assembly, to go to “Tony with the name tag” at a separate counter or checkout lane, to then ask for a specific type of alcohol, a specific brand of alcohol and a specific bottle size.

To what end, one may ask, are lawmakers putting me through this when all I want is a little rum to mix with my lime and Coke? And, this new, government-imposed restriction will hassle consumers not just on Sunday, but every single day of the week.

Consumers will be needlessly inconvenienced and they will rebel. Just a couple of years ago they wanted your heads on pikes for carding them if they looked under the age of 40! Remember that? Passed in one session, repealed the next. Total run time: less than a year.

Do you think they will accept the serial inconveniences in this amendment? No, they will not. There will be a backlash, deservedly so, and it won’t be aimed at the businesses selling alcohol.

This is not the commonsense reform that Hoosiers are asking for. It is concierge legislating for the liquor store lobby. No one here is fooled by this so-called “compromise”, and here’s the trick box you’ve placed yourselves in by trying to place advocates of Sunday sales in a similar box:

With talk of a “compromise,” the public now EXPECTS you to deliver on Sunday sales. They’ve been reading about it for months now and, suddenly, a (so-called) compromise is here! The public doesn’t do nuance and they could care less about the machinations inside this building or the welfare of lobbyists, liquor store owners or this or that grocery store chain.

All they want is to be able to conveniently buy alcohol on Sunday like residents of other states do. It is not an unreasonable expectation. But, this is an unreasonable amendment that places unreasonable burdens on consumers.

With that, I’ll conclude the Indiana Chamber’s support of Sunday sales but opposition to the bill as amended.

Minnesota’s New Site Helps Students Make College Pay

minnPeople in powerful positions often have access to the best information.

Minnesota high school students now have the ability to expand their power base. When they are agonizing over technical school and college choices, they can now look at marketplace data that show which academic programs have high placement rates and what recent graduates are being paid.

For the first time in its history, the Minnesota Department of Employment and Economic Development (DEED) is making this information available to the public on its website.

The data reveal a pattern of underemployment among recent graduates. For the Class of 2011, among those completing programs ranging from certificates to graduate degrees, by their second year out of school, only 42 percent had full-time jobs that they kept for a whole year.

But the most intriguing statistics are the wage breakouts among academic programs. Here are some of the highlights for the Class of 2011 two years after completing their education:

  • Among students who earned bachelor’s degrees in marketing, 52 percent had full-time jobs and 31 percent were working part-time. The median annual salary for full-time employees was $35,373.
  • Among bachelor’s graduates with general business degrees, the median annual wages for full-time employees were $57,227. In this major, 59 percent were employed full-time and 21 percent were working part-time.
  • Those with special education and teaching degrees at the bachelor’s level had annual median earnings of $35,312.
  • Technical education translated into good-sized paychecks for people who completed certificate programs or associate degrees. For example:
  • Annual median earnings were $44,196 for full-time workers who obtained associate degrees in electromechanical instruments and maintenance technology. In this program area, 60 percent held full-time jobs in their second year out of school.
  • Plumbing program graduates also saw high job placement. Among students who completed certificate programs for plumbing, the annual median earnings for full-time workers were $41,229. Forty-five percent were working full time and 42 percent were employed part time in the second year out of school.

The Minnesota Legislature passed a bill requiring DEED to take the wage and employment data that the state receives from employers and present it to state residents in a format that’s easy to use. Called the “graduate employment outcomes tool,” people can use drop-down menus on the DEED website to look up wage and placement data by academic program.

Check out the site.

Going the Mega-Region Route for Economic Development

Richard Florida — he of The Rise of the Creative Class fame — is writing about economic development in a recent post at The Atlantic Cities. But we’re not talking about counties teaming up for business attraction and retention purposes.

Florida says satellite images of the globe at night were used to identify the world’s 40 “mega regions,” defined as a contiguous lighted area with more than one major city or metropolitan area that produced more than $100 billion in economic output.

In North America, this means 12 mega regions that account for 243 metropolitan areas in the U.S. and Canada. The combined population is 230 million people (215 million from the U.S., which account for 70% of our population).

The Chi-Pitts region, which includes Indianapolis, has a $2.3 trillion economic output that would make it the world’s seventh largest.

Here is a quick rundown on the 12 creatively-named regions, from largest to smallest:

•Bos-Wash stretches from Boston through New York, Philadelphia and Baltimore to Washington, D.C., a total of 500 miles. It is home to 18 percent of the U.S. population – 56.5 million people. The region generates $3.75 trillion in economic output, meaning that, if Bos-Wash were a separate country, it would be the fourth largest economy in the world, behind only the U.S., China, and Japan and ahead of Germany.

•Chi-Pitts extends north and west from Pittsburgh through Cleveland, Detroit, Indianapolis, Chicago, and Minneapolis, taking in more than 50 metros in all. Home to 41.8 million individuals, this mega-region’s economy is just a bit smaller than the United Kingdom’s, about the same size as Brazil’s and bigger than all of Russia’s.

•Char-lanta, which is home to 22 million people, takes in 45 metros, including Atlanta, Georgia; Raleigh, North Carolina; and Birmingham, Alabama. With more than a trillion in economic output, its economy is bigger that South Korea’s, placing it among the world’s 15 largest economies.

•So-Cal runs from L.A. through San Diego and spills into Tijuana, Mexico, accounting for 21.8 million people and more than one trillion in economic output.

•So-Flo includes Miami, Orlando and Tampa and is home to 15 million people. It produces more than $750 billion in economic output, making it about the same size as the Netherlands or Turkey.

•Nor-Cal includes San Francisco, San Jose, Oakland and 14 other metros surrounding San Francisco Bay. It has a population of 13 million people and produces more than $900 billion in output, roughly the same as Indonesia and more than Turkey.

•Tor-Buff-Chester stretches north from Buffalo and Rochester, taking in Toronto, Ottawa and Montreal in Canada. It has an estimated population of more than 16 million (several smaller Canadian metros are not included in this tally). It generates output of nearly $600 billion, more than Sweden.

•Dal-Austin encompasses Dallas, Austin, and San Antonio, Texas. Its population is just under 12 million. It produces more than $700 billion in economic output, more than Sweden or oil-rich Saudi Arabia.

•Hou-Orleans, the great energy-producing belt that stretches from Houston through Mobile, Alabama to New Orleans, is home to more than 10 million people. It produces more than $750 billion in economic output, about the same as the Netherlands.  (Some researchers have suggested combining Houston, Dallas-Ft. Worth and Austin into a single “Texas Triangle.” This mega would include 20 million people, and its $1.5 trillion economy would be comparable to Australia’s and just a bit smaller than India’s or Canada’s.)

•The Cascadia mega-region, which stretches up from Portland, Oregon through Seattle and into Vancouver, Canada, is home to nearly 10 million people. It generates economic output of about $600 billion, comparable to Switzerland

•Phoenix-Tucson is home to more than 5 million people and generates economic output of more than $250 billion, just slightly less than Hong Kong.

•Denver-Boulder has 4.2 million people and $256 billion in economic output, more than Finland, Greece or Ireland. If it were a nation, it would  rank among the world’s 50 largest economies.

Check Out the Chamber’s Issue Pages

Do you have a topic you're passionate about, and would like to know what the Indiana Chamber is working on in that area? We've developed some web pages highlighting key issues that will show you what we're focused on and offer some background on our public policies. See the pages below, and more information will be added weekly to these as the session progresses.

http://www.indianachamber.com/education
http://www.indianachamber.com/tax
http://www.indianachamber.com/healthcare
http://www.indianachamber.com/econdev
http://www.indianachamber.com/labor
http://www.indianachamber.com/environment
http://www.indianachamber.com/localgov
http://www.indianachamber.com/federal

Our 2013 Top Legislative Priorities and Legislative Business Issues documents are also available to view.

IUPUI Symposium Focus: Government and Economic Development

State Governments’ Role in the Economic Development of Advanced Manufacturing and Small Business. It’s an interesting proposition and the title of a September 28 event hosted by the Indiana University Robert H. McKinney School of Law on the IUPUI campus.

The Program on Law and State Government Symposium includes addresses from two program fellows and a series of panel discussions. The focus is on how law and policy intersect with economic development strategies and identifying potential solutions for growing the employment base of the industrial Midwest.

Additional details and registration information are available.

Members: Attend May 4 Policy Call on State of Economic Development

The economic development headlines evolve from, in simple terms, “getting new businesses to come to the state.” But the role of the Indiana Economic Development Corporation is also heavily focused on helping existing companies grow. It has a variety of initiatives, programs and strategies to accomplish both missions.

Indiana has fared better than most in the job creation game in recent years. What are the secrets to the state’s success? What are the biggest challenges to an even stronger performance? How can your company benefit from the state’s efforts?

Dan Hasler, Indiana’s secretary of commerce since September 2011, will join us to discuss these issues and more during our Policy Issue Conference Call on Friday, May 4 (9 – 10 a.m. EDT). It will be your opportunity to learn about the early impact of right-to-work, the competitive world of business attraction and much more. Your questions and comments are always welcome. This is for Indiana Chamber members only, and you can register online.

Columnist: It’s About More than Jobs

In the world of economic development, some say jobs are the measuring stick of success. While they are undoubtedly important, jobs cannot be the only measuring point when the ultimate goal is creating prosperous communities, according to Governing columnist William Fulton:

Here are the facts: The national radio show This American Life aired a segment in May on economic development, including a visit to a conference put on by the International Economic Development Council (IEDC). Because the show depicted the council and what it represents in such negative tones, long-time IEDC President Jeff Finkle wrote a lengthy letter of complaint, saying he felt like a guy who invited the show’s producers to a dinner party at his house, and then watched them insult the guests. Ira Glass, producer of This American Life, apologized for the segment’s snarkiness. In the end National Public Radio, which co-funds the show, apologized too.

All this was good copy, as we say in the newspaper business. In particular, Finkle deserves credit for successfully calling out the radio show for its highly negative story and eliciting an apology — something that almost never happens. But the whole controversy obscured one valid criticism of the profession: The way job creation is used as the first, last and only measure of success.

The problem, as the radio show correctly identified, is that there is enormous pressure on politicians and the economic development experts who work for them to take credit for jobs created — and, in some cases, jobs only supposedly created. Sometimes economic developers differentiate between good jobs and lousy jobs, mostly by looking at the hourly or annual wage scales of the jobs — but usually the headline simply telegraphs the number of jobs a state or locality has produced. As the radio show pointed out, at times politicians go to hilarious lengths to take credit, as when Missouri Gov. Jay Nixon held a press conference to celebrate the creation of eight jobs.

So in the same way that teachers are expected to deliver test scores rather than educated children, economic developers are expected to deliver jobs rather than prosperous communities. Hence the focus on poaching jobs from somebody else’s turf and the spotlight on poaching big companies rather than small ones.

As we all know, there’s far more to the economic development profession than jobs. Over the past 20 years, as smokestack-chasing has subsided, economic developers all across the country have done a great job of focusing on growing jobs locally rather than poaching them. But even this approach doesn’t really convey how economic development works. Ultimately, successful economic development can’t be measured only by the number of jobs or even the number of high-paying jobs that have been created.

Everybody needs a “job” in the sense that everybody needs a source of income capable of sustaining them. But prosperity today is so much more than providing everybody with a conventional job. Entrepreneurs need an entire ecosystem to support them — financiers, lawyers, strategists and a growing workforce. Communities need wealth retained in their hometown to endow their future needs.

Different types of people need different types of jobs — white collar, blue collar, professional, technical. As I wrote in this space in May, the next generation increasingly realizes that their future lies in the so-called “1099” economy, where temporary work is becoming the norm. They have no expectation of a traditional career path or even a traditional job.

These are the subtleties of economic development in the United States today that cannot be captured by measuring what we traditionally call “jobs.” They are measured by other things: venture capital available to local companies, skills in the workforce, the value of local philanthropic endowments, the number of startups (successful and unsuccessful) and overall household income.

The end result of all these activities is a prosperous community where people have money in their pocket and a commitment to spending it in a way that benefits both themselves and their hometown. Yes, sometimes this means smokestacks, and yes, most of the time it means jobs. But the underlying truth of that NPR segment is that there’s a difference between jobs and prosperity. If economic development is about nothing but jobs, then stealing jobs and taking credit for jobs that don’t exist will be the inevitable result.