Our Development Strategy

I wrote this BLOG a long time ago, actually about a year ago, but never had the chance to post it. After listening to our Economic Development gurus the other night at Council, I thought I better post it so that you will understand the framework under which they are operating.

I see that more staff is being added to the Commission after the firing of some of the old staff. The problem though is that Mr. Fischer said that his group is still too small and, for any project that is large in size, we merely follow the Province and Feds who have the lead.

This summary is from the Main Report but if you want to read something more useful, read the "Regional Economic Development Strategy - Appendix B (Background Document)

"In today’s global economy, the region of Windsor and Essex County is facing a significant number of issues that are adversely affecting the competitiveness and viability of a number of organizations within the economic sector.

…new global competitors have become part of the global supply chain for services and manufacturing. This requires that North American economic organizations raise their level of performance in order to stay in business and be competitive. Additionally, they must become significantly more innovative and adaptive to changing economic pressures at a global level. Moreover, the companies that will achieve success are those that are the best collaborators. Increasingly more business will be done through collaboration within and between companies. No single firm will be able to successfully handle every aspect of its business on its own.

region’s automotive manufacturers, the parts, machine, tool, die and mould sector, tourism and gaming and agri-business are experiencing economic strain and are negatively affected by:

• a rising Canadian dollar;
• perception or fact of a difficult border crossing;
• rising energy and commodity costs;
• increasing global competition; and,
• non-smoking legislation effective June 2006.

In identifying the foregoing issues and respective economic impact, the Strategic Advisory Group concluded that the traditional economy of the region is facing a crisis.

Given the circumstances, the perception that the existing economic development organization is not working is, to a large degree, a symptom of the region’s economic reality.

The Strategic Advisory Group also concluded that the transition through the crisis will be very disruptive to the region, but it is important to take a long-term perspective. There is no quick fix or ‘silver bullet’. What is required is clear thinking and visionary leadership. The objective should be to enhance the region’s market offering to the extent that it meets the wants and needs of consumers and investors.

This strategy is not an implementation plan, but rather a framework that will guide the development of action steps necessary to achieve results.

The strategic framework presented in this document arose out of extensive discussions with the Strategic Advisory Group and the Project Management Team, with the help and expert advice of Michael Gallis.

The framework consists of three (3) pillars:

• 1. A focus on EXISTING business and industry in terms of retention, expansion and exploring new opportunities.
• 2. ATTRACT new investment to the region by promoting and enhancing the product offering, eliminating barriers and targeting specific businesses and industries to attract.
• 3. Support NEW START-UP business opportunities by:
  a. Identifying commercial business opportunities;
  b. Developing an incubation/support structure;
  c. Assisting with the commercialization of business opportunities;
  d. Creating an “environment of collaboration”;
  e. Developing a mechanism that allows business organizations to support
  and/or tap into research and innovation; in particular, working with the
  University of Windsor and St. Clair College.

As it stands, “Basic” companies are currently facing fierce competition from outside of North America, threatening our “Basic” and, in turn, “Non-Basic” businesses. Hence, the economic viability of the “Basic” industries locally, which include manufacturing, tourism/gaming and agri-business, is extremely important to the region.

A REGIONAL APPROACH
The global marketplace has become a highly integrated network of economic activity. Its geography is defined by economic market space where trading blocks and economic regions compete as opposed to being defined by political space. Competing successfully in this new “global” reality requires that we realign ourselves according to economic regions. By doing so, it amplifies our resources and capacity, essential in being a player in this new economic age, thereby increasing our probability of success.

In terms of the number of people living in Windsor and Essex County, the combined population has been estimated at just over 410,000. The 2004 estimated figure for Windsor is about 225,000, while the seven towns in the County of Essex average approximately 26,000 people. Not only are the individual municipalities relatively small, but even as a region we are small in comparison to some of the regions that compete against us globally. For example, the London-Woodstock economic region had a population slightly over 584,000 in 2001; only the sixth largest Economic Region in Ontario. The Kitchener-Waterloo Barrie area had over one million people. Some of the larger economic regions in Ontario including the Greater Toronto Area and Hamilton-Niagara Peninsula had populations of about 4.9 million and 1.2 million, respectively. Hence, competing in the world marketplace as individual municipalities is out of sync

In fact, it would be wise for the region to consider further broadening its scope and aligning itself with a larger economic market unit.

Each municipality should be free to pursue local priorities and initiatives; however, these projects should complement the overall regional strategy. Through effective two-way communication, the regional organization and local municipalities must work collaboratively to establish mutual objectives with a clear division of labour, roles and accountabilities that avoid duplication, maximize, to the degree possible, information and intelligence sharing and facilitate the “listen to the investor approach”.

The success of Windsor and Essex County in developing and implementing an effective economic development strategy will be dependent upon the synergy that is created between the regional organization and local municipalities. Beginning with the basic understanding of the roles of the regional organization and local municipalities, the more precise delineation of roles will evolve as the relationship between the parties matures.

This regional strategy is definitely a departure from the traditional ways of doing business. But the old ways don’t work anymore in the “new world economy”. It is, therefore, imperative that we change our ways of thinking and work together. There needs to be buy-in from all groups or, in the absence of support, the economic success of this region will be severely limited and hampered. When all is said and done, there is no reason why this region cannot be teachers of this regional approach and a “best practice” of effective economic development.

The process of developing the Regional Economic Development Strategy for Windsor and Essex County has been predicated on the principle that structure must follow strategy. Following this premise, the structure of the new organization must support the three pillars and the related activities that form the essence of the strategic framework.

Because of the nature of the region’s strategy, traditional performance measures such as the number of new plants attracted, or the number of jobs retained, albeit significant, should not be the primary indicators of success. These could actually be counterproductive by driving the wrong behaviour. To truly change the direction of this region will require establishing new relationships, new connections and new networks. It will require a “leap of faith” in the ability of the governing body and management leadership of the organization to achieve long-term results.

We must understand that there is no silver bullet in this situation. Many of the significant components affecting our market offering (the Canadian dollar, rising energy costs, the perception or fact of a difficult border crossing, globalization of the manufacturing economy, the current overcapacity and under-performing situation of the Original Equipment Manufacturers, and the entrepreneurial makeup of the business community) are simply beyond the scope of influence of a regional economic development organization. We also understand that such an organization will not have endless resources with which to operate. We believe that the major role for an economic development organization will be that of connector and information provider.

It is difficult to ascertain the nature of the overall benefits that will be received by any local community. Clearly, attracting new business to the region and retaining existing business at its current or higher levels of prosperity is good for the whole region in that it attracts assessment and dollars that get circulated within the whole community. It is hard to predict where exactly new business will be located and what existing business will be retained and where. It is therefore complex to determine specific benefits on a local municipality basis.

This report concerning the recommended strategy for the regional economy of Windsor and Essex County presents a high level, strategic vision for success. It is not a detailed implementation plan with specific action items. The strategy bridges the gap between today and tomorrow.

As a strategy document, it provides a roadmap or a framework towards creating a regional economic environment."