RACINE COUNTY ECONOMIC DEVELOPMENT PLAN (EDP 5.0) Adopted by Racine County Board of Supervisors November 16, 2010Prepared by the Racine County Economic Development Corporation and the Racine County EDP Implementation Team with the assistance of the consulting firm, TIP Strategies, Inc.
Table of Contents RACINE COUNTY ECONOMIC DEVELOPMENT PLAN (5.0)SECTION PAGEINTRODUCTION ................................................................................................................................................................................... 1A VISION FOR RACINE COUNTY ..................................................................................................................................................... 6RACINE COUNTY ECONOMIC DEVELOPMENT CORPORATION (RCEDC) MISSION STATEMENT ............................ 6RACINE COUNTY CHALLENGES AND STRATEGIES................................................................................................................. 6CHALLENGE ONE: TO CREATE AN ENTREPRENEURIAL CULTURE IN RACINE COUNTY. ............................................................................ 8 Three Year Metrics:..................................................................................................................................................................... 8 Strategies: .................................................................................................................................................................................... 8 A. The SBDC and its respective partners will continue to market and communicate entrepreneurship resources and services to Racine County businesses. ............................................................................................................................................... 8 B. Human capital will be cultivated and recruited as a strategy for new business creation........................................................ 8 C. Existing programs will be maintained and new financial capital programs and resources will be attracted which address fundamental gaps preventing the start and growth of Racine County entrepreneurs............................................................ 9 D. Target additional resources and capacity to building high-impact businesses within Racine County. .................................. 9CHALLENGE TWO: TO FOCUS ON A PROACTIVE BUSINESS RECRUITMENT PROGRAM AND A BUSINESS RETENTION AND EXPANSION(BRE) PROGRAM THAT WILL CREATE AND RETAIN JOBS, CREATE ADDITIONAL TAX BASE AND INCREASE PERSONAL INCOME INRACINE COUNTY. .................................................................................................................................................................................. 10 Three Year Metrics:................................................................................................................................................................... 10 Strategies: .................................................................................................................................................................................. 10 A. RCEDC will continue to implement a targeted and proactive business recruitment program ............................................. 10 B. RCEDC will maintain an active BRE program that meets the needs of existing employers in Racine County................... 10 C. RCEDC will support partner organizations that are working on issues that are critical to successful economic development through an active community engagement program........................................................................................................... 11 D. Continue to provide staff assistance to business and local units of government that support business recruitment and business retention and expansion. ...................................................................................................................................... 12 E. Focus the resources of Gateway Technical College's Center for Advanced Technology and Innovation (CATI) on becoming a regional center (Chicago-Milwaukee)............................................................................................................. 12CHALLENGE THREE: TO UTILIZE THE EXISTING NATURAL AND CULTURAL RESOURCES, RECREATIONAL OPPORTUNITIES AND BUSINESSLOCATION ADVANTAGES TO PROMOTE A POSITIVE IMAGE OF RACINE COUNTY TO EXISTING RESIDENTS AND THOSE OUTSIDE THECOUNTY ................................................................................................................................................................................................ 13 Three Year Metrics:................................................................................................................................................................... 13 Strategies: .................................................................................................................................................................................. 13 A. Local Community development organizations in Racine County should continue to promote a positive image of the County to both internal and external audiences using the brand platform analysis completed by Prophet in 2002, and then restated by Boelter and Lincoln in 2009 as the blueprint for the orientation of this initiative............................................ 13 B. To attract, engage and retain young professionals by enhancing the value of participating with Young Professionals of Racine (YPR) for member and partners, deepen our commitment to the community, being the voice of young professionals in the community and expanding YPR's reach, both in recognition and membership.................................. 14CHALLENGE FOUR: TO TAKE ADVANTAGE OF THE DEVELOPMENT OPPORTUNITIES THAT EXIST AS A RESULT OF THE CHICAGO-MILWUAKEE CORRIDOR AND TO PROPERLY LINK LAND USE WITH FUTURE BUSINESS DEVELOPMENT COUNTY-WIDE………………….15 Three-Year Metrics: .................................................................................................................................................................. 15 Strategies: .................................................................................................................................................................................. 15
A. Provide high value real estate development opportunities that link Racine County with the Southeast Wisconsin Region and Northern Illinois, including an update of the Racine County Industrial Lands Absorption Study ............................. 15 B. Support the extension of commuter rail and other transit opportunities from Kenosha to Racine and Milwaukee ............. 16 C. Address the adequacy of public transportation for serving the needs of low- and moderate-income persons to access job opportunities in Racine County and throughout southeast Wisconsin. .............................................................................. 16 D. Use the Multi-Jurisdictional Comprehensive Plan for Racine County: 2035 to properly guide urban growth and development in Racine County........................................................................................................................................... 16 E. Facilitate cooperation between eastern and western Racine County relative to land use and transportation issues. ........... 16 F. Continue the current County and local government initiatives to streamline the private sector land development process, through collaboration and communication ......................................................................................................................... 17 CHALLENGE FIVE: TO LINK EDUCATION AND TRAINING IN A MANNER THAT PROVIDES A COMPETITIVE WORKFORCE TO MEET THE PRESENT AND FUTURE NEEDS OF LOCAL EMPLOYERS AND TO CREATE OPPORTUNITIES FOR LOW-INCOME, DISADVANTAGED AND MINORITY INDIVIDUALS TO PREPARE FOR AND OBTAIN EMPLOYMENT .................................................................................................. 18 Three-Year Metrics: .................................................................................................................................................................. 18 Strategies: .................................................................................................................................................................................. 19 A. Ensure that the educational content provided in the county's pre/K-12 system is personalized, allowing for rigorous learning by students and engagement based on possible career aspirations. Students will use multiple processes and technology to achieve their academic goals.. ..................................................................................................................... 19 B. As a foundation for ensuring more reliable, productive employees and with a focus on geographic pockets of concentrated poverty, assist and empower low-income residents to function well in their day-to-day lives and to take responsibility for themselves and their families. ............................................................................................................................................ 20 C . Provide the infrastructure for new and expanding business and industry in areas of high unemployment and identify appropriate business targets with the potential to locate in and/or expand in these areas in order to employ the unemployed and underemployed persons that will be educated and trained through the programs identified elsewhere in the plan ............................................................................................................................................................................... 20 D. Provide alternative transportation options that more clearly link underutilized workers in the community with employment and educational opportunities within Racine County and between Racine County and other counties in the region . ...... 21 E. Develop diversified approaches to meet the workforce needs of employers within Racine County.................................... 21 F. Develop a program that transorms the perception about Racine County among certain key \"persuadable\" populations. ... 22APPENDICES........................................................................................................................................................................................ 23 A. Executive Summary: Background Information and Analysis.............................................................................................. 23 B. Higher Expectations: A Workforce Development Strategy for Racine County................................................................... 38 C. Real Racine Strategic Plan................................................................................................................................................... 98
Racine County Economic Development Corporation Economic Development Plan 5.0RACINE COUNTYECONOMIC DEVELOPMENT PLAN (EDP 5.0)INTRODUCTIONThe Racine County Executive William McReynolds and the Racine County Board (see Table 1) along withthe Racine County Economic Development Corporation (RCEDC) Board of Directors (See Table 2) andthe Economic Development Plan (EDP) 5.0 Implementation Team (see Table 3) are pleased to presentthis Economic Development Plan for Racine County. This 5th edition of the EDP is a successor to theoriginal EDP completed in April 2002 that also included: Phase I, background information and analysiswith a baseline economic assessment of the county including an examination of its strengths andweaknesses, and Phase II, an industry cluster analysis. The EDP 5.0 assumes a three-year planninghorizon and was adopted by the RCEDC Executive Committee on August 3, 2010 (See Figure 1) and theRacine County Board on November 16, 2010 (See Figure 2).The original EDP and the subsequent updates were initiated in response to the following concerns inRacine County: The “New Economy” and its impact on Racine County; Recent company mergers, acquisitions and consolidations in the County; Evaluating current RCEDC economic development services; and Determining the infrastructure that will be necessary to support future business development.The purpose of the EDP 5.0 is to provide Racine County and its partners with challenges and strategiesspecific to the future economic vitality of the county. This emphasis is of particular importance. Thereare community development issues (workforce development, land use and our community’s image) thathave an economic impact on economic development but are not within the organizational purview ofRCEDC. Identifying these concerns must be carefully distinguished from the specific economicdevelopment mission of the RCEDC. Because of the overlapping importance of many of the county’smost pressing issues, this distinction must be preserved throughout the implementation process.The plan also represents a departure from traditional thinking. It does this in two ways; first, by linkingeconomic development planning with comprehensive planning and second, by actively engaging allelements of the business and political leadership. 1 Economic Development Plan 5.0
Racine County Economic Development Corporation Economic Development Plan 5.0 TABLE 1 RACINE COUNTY BOARD 2010 BOARDPeter Hansen................................................................................ Chairman, District 18Russell A. Clark ...................................................................... Vice-Chairman, District 10Donnie Snow ............................................................................................... District 1Gaynell Dyess .............................................................................................. District 2Monte G. Ostermann...................................................................................... District 3Kenneth Lumpkin.......................................................................................... District 4David Cooke ................................................................................................ District 5Pamela Zenner-Richards ................................................................................. District 6Van H. Wanggaard ........................................................................................ District 7Q.A. Shakoor, II............................................................................................ District 8Daniel F. Sharkozy ........................................................................................ District 9Katherine Buske ..........................................................................................District 11Robert N. Miller ..........................................................................................District 12Mark M. Gleason..........................................................................................District 13Ronald Molnar ............................................................................................District 14Ken Hall....................................................................................................District 15John A. Wisch.............................................................................................District 16Robert D. Grove ..........................................................................................District 17Joseph F. Bellante, Jr. ..................................................................................District 19Jeff Halbach ..............................................................................................District 20Gilbert Bakke .............................................................................................District 21Thomas Pringle ...........................................................................................District 22Mike Dawson ..............................................................................................District 23 2 Economic Development Plan 5.0 5
Racine County Economic Development Corporation Economic Development Plan 5.0 TABLE 2 RACINE COUNTY ECONOMIC DEVELOPMENT CORPORATION 2009/2010 BOARD OF DIRECTORSMike Aimone, President ..................................................................Village of Union GroveBryan Albrecht, President ......................................................... Gateway Technical CollegeJulie Anderson, Director ......................................... Racine County Planning and DevelopmentOla Baiyewu, Executive Director ................................ First Choice Pre-Apprenticeship ProgramKen Buser, President & CEO ...............................................................All Saints HealthcareJim Beere, President ........................................................................... Pioneer ProductsSteve Bell, President .................................................................... Community State BankRon Coutts, President .......................................................................Village of CaledoniaJohn Dickert, Mayor ................................................................................ City of RacineBrian French, Human Resource Director .................................................................... CNHPeter Hansen, County Board Chairman ..........................................................Racine CountyJon Hendersen ...................................................................... Horizon Retail ConstructionDan Horton, Senior V.P. and Chief Administrative Officer ......................................SC JohnsonEd Lonergan, President & Chief Executive Officer ............................................ Diversey, Inc.Jeff McKeown, President ................................................. Express Employment ProfessionalsWilliam McReynolds, County Executive..........................................................Racine CountyCarolyn Milkie, President ............................................................... Village of Mt. PleasantRobert Miller, Mayor ............................................................................City of BurlingtonJames Moyer, Chairman........................................................................Town of YorkvilleDave Perkins, Chief Financial Officer ................................................. Racine Federated Inc.Dan Pettit, Partner ...............................................................DeMark Kolbe & Brodek, S.C.Ahmad Qawi, Director of Community Development ..................................................... YMCADave Richmond, President................................................................. Village of WaterfordFrancisco Sanchez, Vice President ..................................................... JP Morgan Chase BankGary Schildt, President.................................................................................Hypro, Inc.Scott Sharp, President.....................................................................Local 67, Racine DPWDr. Jim Shaw, Superintendent ................................................. Racine Unified School DistrictTom Shinners, V.P. Finance and Human Resources.......................................Poclain Hydraulics 3 Economic Development Plan 5.0
Racine County Economic Development Corporation Economic Development Plan 5.0 TABLE 3 EDP 5.0 Implementation TeamMike Andreasen, Administrator ............................................................. Village of Mt. PleasantJulie Anderson, Director .................................................Racine County Planning & DevelopmentTheresie Bode, Program Manager – Community Development ....................................... SC JohnsonMarie Black, Executive Director ........................................................ Hispanic Business AllianceDave Blank, Director........................................................................................Real RacineRon Coutts, Supervisor ...........................................................................Village of CaledoniaArt Cyr, Director of the A.W. Clausen Center for World Business ............................... Carthage CollegeDebbie Davidson, Vice President ....... Workforce & Economic Development, Gateway Technical CollegeJonathan Delagrave, Director ......................................................Racine County Human ServicesFred Ebeid, Dean of the School of Business & Technology ..........................................UW-ParksideRebecca Ewald, Village Administrator ........................................................ Village of WaterfordGordy Kacala, Executive Director ........................ Racine County Economic Development CorporationKevin Lahner, Administrator ...................................................................... City of BurlingtonTom Lebak, Administrator .......................................................................Village of CaledoniaJan Ludtke, Director...................................................... Burlington Area Chamber of CommerceRandy Luter, Interim Executive Director ....................Community Economic Development CorporationHeather Lux, Project Director, Southeast Office ...... Wisconsin Women’s Business Initiative CorporationTerrence McMahon, Supervisor ....................................................................Town of YorkvilleWilliam McReynolds, County Executive...............................................................Racine CountyBrian O’Connell, Director, City Development ...................................................... City of RacineAlice Oliver, Manager............................................ Racine County Workforce Development CenterDr. Matt Wagner, Director ................................... UW-Parkside Small Business Development CenterWally Rendon, Director ........................................... Hispanic Business & Professionals Association 4 Economic Development Plan 5.0 5
Racine County Economic Development Corporation Economic Development Plan 5.0George Stinson, President ..................................................... General Converters & AssemblersDevin Sutherland, Executive Director ............................................ Downtown Racine CorporationScott Terry, President................................... African American Business & Professional AssociationKate Walker, Interim Director .................................................................................... CATI 5 Economic Development Plan 5.0
Racine County Economic Development Corporation Economic Development Plan 5.0A VISION FOR RACINE COUNTYSubsequent to the adoption of the original EDP, the RCEDC engaged the strategic branding andmarketing consulting firm of Prophet, Inc. to develop a vision for the Racine County EDP. The followingremains that vision: Racine County is the region’s epicenter for personal and professional growth, providing a variety of recreational, cultural and business opportunities and resources. We encourage strong relationships, new ideas and new ways of doing business to drive community development.RACINE COUNTY ECONOMIC DEVELOPMENT CORPORATIONMISSIONA mission statement differs from a vision statement in its direct attention to the operational needs ofan organization. Meaningful mission statements follow directly from a common vision. In this context,the RCEDC has adopted, as a part of this planning process, the following mission: Ensuring the economic vitality of Racine County by working with our partners to support innovation and creativity that leads to business investment.The mission should be connected to the vision. It should also be broad enough to adjust to changingconditions, but specific enough to provide programmatic guidance.RACINE COUNTY CHALLENGESThe EDP 5.0 for Racine County is built around five challenges. These challenges represent the areasthat most directly affect the economic vitality of the county. They were arrived at through theactive involvement of the EDP Implementation Team and the Challenge Lead Partners. They form thecore of the strategic plan. All of the strategies for the county, as well as the specific activities, areinformed by these challenges: Challenge One: To create an entrepreneurial culture in Racine County. Challenge Two: To focus on a proactive business recruitment program and a business retention and expansion (BRE) program that will create and retain jobs, create additional tax base and increase personal income in Racine County. 6 Economic Development Plan 5.0 5
Racine County Economic Development Corporation Economic Development Plan 5.0 Challenge Three: To utilize the existing natural and cultural resources, recreational opportunities and business location advantages to promote a positive image of Racine County to existing residents and those outside the County. Challenge Four: To take advantage of the development opportunities that exist as a result of the Chicago-Milwaukee Corridor and to properly link land use with future business development County-wide. Challenge Five: To link education and training in a manner that provides a competitive workforce to meet the present and future needs of local employers and to create opportunities for low-income, disadvantaged and minority individual to prepare for and obtain employment.The original EDP was completed in 2002 and included a significant collection and analysis ofdemographic and economic data and information, much of which remains relevant today. Thisinformation is summarized in Attachment A, “Background Information and Analysis”. An update to thisanalysis was conducted as a part of the Racine County Workforce Development Board “HigherExpectations: A Workforce Development Strategy for Racine County” in May 2008. This information isincluded as Attachment B, together with a summary of the Higher Expectations Plan. Also, in 2009 RealRacine conducted a branding study which is included as Attachment C. Finally, as a part of thedevelopment of the EDP 5.0, TIP Strategies, an RCEDC consultant, conducted a series of focus groupsand a community survey designed to solicit updated information on the focus of future economicdevelopment activities. This information is included as Attachment D. 7 Economic Development Plan 5.0
Racine County Economic Development Corporation Economic Development Plan 5.0CHALLENGE ONE: TO CREATE AN ENTREPRENEURIAL CULTURE IN RACINECOUNTYLEAD PARTNER: UW-PARKSIDE SMALL BUSINESS DEVELOPMENT CENTERThree Year Metrics: 1. SBDC Facebook fan page contains 200 fans; 2. Twenty-five articles appear on entrepreneurship activities in Racine County; 3. Twenty entrepreneurs graduate from FastTrac Tech for technology companies; 4. Thirty companies graduate from FastTrac Growth Venture; 5. Thirty entrepreneurs graduate from on-line “Small Biz” course; 6. Thirty-five students graduate from the UW-Parkside Entrepreneur Certificate Program; 7. $1 million exploratory capital pool developed; 8. Fifty existing firms and entrepreneurs to utilize component of SBDC/Specialty Center website to align ideas, business opportunities, technical and financial resources, student projects, and open innovation requests; 9. Twenty-five inventors participate in “Best Invention Contest;” and, 10. Launch 15 high impact companies.Strategy A. The SBDC and its respective partners will continue to marketand communicate entrepreneurship resources and services to Racine County businesses.Activities: 1. Work with media to educate/highlight importance of entrepreneurship – sharing success stories; 2. Utilize social media marketing as innovative tools for outreach; 3. Encourage a partnership structure that provides links and outreach to each partner’s clients and respective contact lists; 4. Cooperate in the delivery of entrepreneurial services from regional partners including: CATI, BizStarts Milwaukee, the Wisconsin Entrepreneurial Network and the UW- Whitewater Six County Ingenuity initiative; and, 5. Develop and implement a “CEO Roundtable” discussion group modeled after the Edward Lowe Foundation model with the goal of growing second stage high growth companies.Strategy B. Human capital will be cultivated and recruited as a strategy for new businesscreation.Activities: 1. Develop a comprehensive network of entrepreneurship connection points, including business brokers; executive recruiters, academic entrepreneurship programs, workforce development centers; 8 Economic Development Plan 5.0 5
Racine County Economic Development Corporation Economic Development Plan 5.0 2. Create programs (both virtual and physical) linking entrepreneurs and opportunities; 3. Develop virtual web content for training and networking opportunities 24/7; 4. Develop a recruitment initiative aimed at northern Illinois entrepreneur talent; 5. Encourage and support institutions to develop K-12 and Post K-12 entrepreneurship programming and degrees; and, 6. Support entrepreneurial projects that leverage students for experiential learning opportunities.Strategy C. Existing programs will be maintained and new financial capital programsand resources will be attracted which address fundamental gaps preventing the start andgrowth of Racine County entrepreneurs.Activities: 1. Maintain existing small business financing tools from CEDCO, RCEDC and WWBIC; 2. Develop a funding mechanism for “Entrepreneur in Residency” program to link dislocated worker talent with technology opportunities; and 3. Create a “seed or exploratory” capital pool aimed at the proof of concept stage of entrepreneurial development.Strategy D. Target additional resources and capacity to building high-impact businesseswithin Racine County.Activities: 1. Launch a best invention contest to assess and value local product inventions, much like a business plan contest; 2. Hold semi-annual business pitch contests targeting industry clusters and/or high- impact entrepreneurial ventures; 3. Develop web-based connections to technology opportunity marketplaces like Yet2.com; CATI; Universities, Federal Labs, etc; 4. Identify existing business incubators and multi-tenant space and the square footage that is available for lease in these facilities; and, 5. Complete and evaluate the results of Erik Pages, City of Racine Entrepreneurial Analysis, coordinated by the Mayor’s office of Strategic Partnerships. Organization partners include the UW-Parkside SBDC, WWBIC and CEDCO.SUPPORT PARTNERS:WWBIC, CEDCO, RAMAC, GTC, RCEDC, HBPA, AABPA, Carthage College, BizStartsMilwaukee, WEN, UW-Whitewater Ingenuity Initiative and CATI. 9 Economic Development Plan 5.0
Racine County Economic Development Corporation Economic Development Plan 5.0CHALLENGE TWO: TO FOCUS ON A PROACTIVE BUSINESS RECRUITMENTPROGRAM AND A BUSINESS RETENTION AND EXPANSION (BRE) PROGRAMTHAT WILL CREATE AND RETAIN JOBS, CREATE ADDITIONAL TAX BASE ANDINCREASE PERSONAL INCOME IN RACINE COUNTY.Lead Partner: Racine County Economic Development CorporationThree Year Metrics: 1. Recruit 12 new companies or significant business start-ups* to Racine County; 2. Assist 21 existing companies to expand, creating new and retaining existing jobs; 3. Seventy-five companies will participate in our Web-Based Business Matchmaking system; 4. Twenty-five companies will be active in the new government procurement program; 5. Seventy-five companies will take advantage of the Next Generation Manufacturing program through workshops and one-on-one assistance; 6. RCEDC and our partners will conduct 72 new workshops and seminars on business- related issues; and, 7. Determine CATI Metrics following merger with GTC. * Refers to companies that are recruited to Racine County such as CalStar in the Village of Caledonia. These companies are differentiated from the small businesses referred to in Challenge One.Strategy A. RCEDC will continue to implement a targeted and proactive businessrecruitment program.Activities: 1. The Chicago-Milwaukee Corridor, with emphasis on advanced manufacturing, green industries, logistics and distribution; 2. Foreign direct investment, with emphasis on China; 3. Small and medium-sized companies with significant growth potential; and, 4. Regional industry targets of the Milwaukee 7: water industries, advanced manufacturing and food processing.Strategy B. RCEDC will maintain an active BRE program that meets the needs of existingemployers in Racine County.Activities: 10 Economic Development Plan 5.0 5
Racine County Economic Development Corporation Economic Development Plan 5.0 1. Undertake a comprehensive business outreach program with an emphasis on manufacturing and using the Synchronist software interview system that will enable comparisons to national trends; 2. Identify and provide assistance to small and medium-sized companies with significant growth potential; 3. Develop a web-based business matchmaking system that enables companies to confidently buy locally and sell products throughout the Chicago-Milwaukee Corridor; 4. Provide assistance to the existing government procurement initiative that was initiated by private sector companies in Racine County; 5. Develop a Next Generation Manufacturing assistance program consisting of workshops and one-on-one technical assistance that focuses on: a. Customer focused innovation, b. Advanced talent management, c. Systematic continuous improvement, d. Extended enterprise management, e. Sustainable products and processes, f. Global engagement; and, 6. Develop a series of business development workshops and seminars that meet the technical assistance needs of businesses in Racine County.Strategy C. RCEDC will support partner organizations that are working on issues that arecritical to successful economic development through an active community engagementprogram.Activities: 1. International opportunities through Sister City relationships; 2. Entrepreneurship through the programs of the UW-Parkside Small Business Development Center (SBDC); Wisconsin Women’s Business Initiative Corporation; the Community Economic Development Corporation (CEDCO); and, Gateway Technical College; 3. Green initiatives and sustainability through both public and private sector opportunities; 4. Implementation of the Racine County Workforce Development Board’s strategic plan. 5. Appropriate land use through the programs of the Racine County Planning and Development Department; and, 6. Promoting Racine County’s image and quality of life through the programs of Real Racine. 11 Economic Development Plan 5.0
Racine County Economic Development Corporation Economic Development Plan 5.0Strategy D. Continue to provide staff assistance to business and local units of governmentthat support business recruitment and business retention and expansion.Activities: 1. Together with RAMAC, provide staff support to Racine County Workforce Development Center, Business Services Team; 2. Provide staff support to local units of government in the provision of infrastructure critical to economic development, including, but not limited to: brownfield redevelopment; commercial corridor redevelopment; business park development; and related infrastructure; and, 3. Provide secondary business financing to Racine County businesses, including the SBA programs and local revolving loan funds.Strategy E. Focus the resources of Gateway Technical College’s Center for AdvancedTechnology and Innovation (CATI) on becoming a regional center (Chicago-MilwaukeeCorridor).Activities: 1. Leveraging intellectual property assets; licensing technologies to expedite speed to market; 2. Assisting companies in gaining an understanding of new product and marketing opportunities; and, 3. Providing a database to source open innovation requests. (Early 2011)SUPPORT PARTNERS:Local government elected officials and staff, local chambers of commerce, businessassociations, educational organizations, Racine County Workforce Development Centerand regional economic development and workforce agencies. 12 Economic Development Plan 5.0 5
Racine County Economic Development Corporation Economic Development Plan 5.0CHALLENGE THREE: TO UTILIZE THE EXISTING NATURAL AND CULTURALRESOURCE, RECREATIONAL OPPORTUNITIES AND BUSINESS LOCATIONADVANTAGES TO PROMOTE A POSITIVE IMAGE OF RACINE COUNTY TOEXISTING RESIDENTS AND THOSE OUTSIDE THE COUNTY.Lead Partner: Real RacineThree Year Metrics: 1. Increase unique visitors to Racine.org website to 300,000; 2. Elevate the awareness of North Beach for summer visits and position the beach as the best in the Midwest; 3. Increase the number of Facebook Fans of Real Racine by 50% overall and increase the number of Illinois fans by 50%; 4. Increase the email database of travelers subscribing to the Real Racine quarterly leisure newsletter to 3,000 subscribers; 5. Increase the annual visitor expenditure levels back to the 2008 level of $247 million; and, 6. Establish and increase viral participation of visitors submitting to sites and adding conversation.Strategy A. Local community development organizations in Racine County shouldcontinue to promote a positive image of the County to both internal and externalaudiences using the brand platform analysis completed by Prophet in 2002, and thenrestated by Boelter and Lincoln in 2009 as the blueprint for the orientation of thisinitiative.Activities: 1. All partners should integrate the brand platform into their long term strategic planning efforts; 2. Include EDP information in all relocation packets that are sent out by RCEDC, Real Racine and the Chamber of Commerce to prospective residents and companies; 3. Create and distribute videos with positive images of Racine County to websites, local cable access systems, Wisconsin on Demand and other statewide cable television channels; 4. Encourage links to other partners’ web sites. Imbed videos and links to positive publicity about Racine County in all web pages. All partners should optimize their 13 Economic Development Plan 5.0
Racine County Economic Development Corporation Economic Development Plan 5.0 websites to increase the number of visitors who are looking for employment, tourism and business development information; 5. Meet with the support partners on a one-on-one basis to ensure buy-in for this strategy and to discuss ways in which the brand platform can be included in the partner’s marketing initiatives. Seek a memorandum of understanding among the organizations regarding the use of the brand platform elements for marketing initiatives; 6. Utilize the EDP implementation team, of which the above-mentioned partners are members, to monitor the on-going marketing initiatives of these organizations and the partner’s commitment to the brand platform; 7. Create and nurture events that bring positive regional/nationwide publicity to the County; 8. Work with internal and external print and electronic media outlets to plant positive stories about Racine County; 9. Meet with local media outlets to discuss the need for positive publicity; 10. Find more distribution points in the Chicago/Milwaukee corridor for printed publications such as the Racine County Visitors Guide and local Chamber quality of live and visitor services pieces; and, 11. Work with other regional partners to promote the Milwaukee 7 region.Strategy B. To attract, engage and retain young professionals by enhancing the value ofparticipating with Young Professionals of Racine (YPR) for members and partners;deepening YPR’s commitment to the community; being the voice of young professionals inthe community; and, expanding YPR’s reach both in recognition and membership.Activities: 1. Be a valuable asset to partner companies for attraction and retention of talent; 2. Be the source of valuable programming and opportunities to our membership; 3. Provide an inter-connected network among Partners and members; 4. Facilitate premier community events to make a meaningful impact; 5. Be a source for community service information to encourage members participation year-round; 6. Actively stay up-to-date on key issues surrounding and most pertinent to our constituency; 7. Foster an environment for open dialogue and discussion surrounding key issues; 8. Develop consistent messaging strategies to strengthen our brand awareness; 9. Maintain high visibility; and, 10. Increase the YPR membership base.Support Partners:Local Chambers of Commerce, Downtown Racine Corporation, Racine County WDC,Gateway Technical College, UW- Parkside, Carthage College, YPR, RCEDC, Chambers ofCommerce and business associations. 14 Economic Development Plan 5.0 5
Racine County Economic Development Corporation Economic Development Plan 5.0CHALLENGE FOUR: TO TAKE ADVANTAGE OF THE DEVELOPMENTOPPORTUNITIES THAT EXIST AS A RESULT OF THE CHICAGO-MILWAUKEECORRIDOR AND TO PROPERLY LINK LAND USE WITH FUTURE BUSINESSDEVELOPMENT COUNTY-WIDE.Lead Partner: Racine County Planning and DevelopmentThree Year Metrics: 1. Absorption Study updated by 2012, with assistance from SEWRPC; 2. Countywide referendum on transit November 2010 ballot; 3. Complete Racine County Public Transit Plan in 2011; 4. Revise Multi-Jurisdictional Comprehensive Plan in 2013-2014; 5. Agenda and Internet Link collaboration in fall 2010; 6. Annually review opportunities to collaborate and share services; 7. Zoning Ordinance updates twice annually, or more often as needs are identified; and, 8. Update Industrial Lands Absorption Study, 2011.Strategy A. Provide high value real estate development opportunities that link RacineCounty with the Southeast Wisconsin Region and Northern Illinois, including an update ofthe Racine County Industrial Lands Absorption Study.Activities: 1. Monitor progress of sewer & water extension along I-94 Corridor in Racine County, based on sewer and water agreement; 2. Update the Racine County Industrial Lands Absorption Study to determine amount of land available or needed for industrial lands (with assistance from SEWRPC staff) and, if possible, determine the adequacy of available industrial buildings that are currently vacant; and, 3. Continue to competitively pursue industrial and commercial brownfield redevelopment projects in communities throughout Racine County. 15 Economic Development Plan 5.0
Racine County Economic Development Corporation Economic Development Plan 5.0Strategy B. Support the extension of commuter rail and other transit opportunities fromKenosha to Racine and Milwaukee.Activities: 1. Develop and implement ITN America program in Racine County as an alternative senior transportation program. Employment transit expansion to I-94 expanded; 2. Conduct a county-wide referendum for public transit funding; and, 3. Participate in the Southeastern Regional Transit Authority to work to develop and implement commuter rail in Kenosha, Milwaukee and Racine counties.Strategy C. Address the adequacy of public transportation for serving the needs of low-and moderate-income persons to access job opportunities in Racine County andthroughout southeast Wisconsin.Activities: 1. Complete, adopt and implement the Racine County Public Transit Plan: 2010-2014; and, 2. Coordinate the implementation of the Racine County Higher Expectations Strategic Plan with this strategy.Strategy D. Use the adopted Multi-Jurisdictional Comprehensive Plan for Racine County:2035 to properly guide urban growth and development in Racine County.Activities: 1. Land use decisions are consistent with the plan documents, with updates to plans following prescribed statutory processes; and, 2. Revisit the overall plan for any major updates in 2014.Strategy E. Facilitate cooperation between eastern and western Racine County relativeto land use and transportation issues.Activities: 1. Sharing of internet links and inclusion in email groupings for agendas and minutes of County and local meetings. 16 Economic Development Plan 5.0 5
Racine County Economic Development Corporation Economic Development Plan 5.0 2. Remain active participants in updates to the Multi-Jurisdictional Comprehensive Plan for Racine County: 2035Strategy F. Continue the current County and local government initiatives to streamlinethe private sector land development process, through collaboration and communication.Activities: 1. Process changes to County zoning ordinance to align with current technologies and economic realities; and, 2. Seek opportunities to share government services in an effort to reduce duplicative efforts.SUPPORT PARTNERS:Racine County Executive; Racine County Board of Supervisors; RCEDC; Local Chambers ofCommerce; Local Units of Government; Racine County WDC; Real Racine; YoungProfessionals of Racine; Milwaukee 7; HBA; DRC; AABPA; SEWRPC; Racine County MobilityManager and ITN Racine County. 17 Economic Development Plan 5.0
Racine County Economic Development Corporation Economic Development Plan 5.0CHALLENGE FIVE: TO LINK EDUCATION AND TRAINING IN A MANNER THATPROVIDES A COMPETITIVE WORKFORCE TO MEET THE PRESENT AND FUTURENEEDS OF LOCAL EMPLOYERS AND TO CREATE OPPORTUNITIES FOR LOW-INCOME, DISADVANTAGED AND MINORITY INDIVIDUALS TO PREPARE FOR ANDOBTAIN EMPLOYMENT.Lead Partner: Racine County Workforce Development BoardThree Year Metrics:Metrics Related to Strategy A: 1. Improve educational attainment rates in Racine County as measured by nationally normalized tests; 2. Increase number of graduates and improved graduation rates across all County high schools; 3. Improve achievement on key standardized tests; 4. Benchmark results from dual-purpose tests (i.e. WorkKeys); 5. Improve post-secondary job placement success rates; 6. Increase number of county high school students earning college credit while in high school; 7. Increase number of county high school graduates enrolled at Gateway Technical College, UW-Parkside, and Carthage College; 8. Reduce remedial requirements for students entering post-secondary institutions 9. Reduce achievement gap across key demographics; 10. Improve results on surveys of employers regarding hiring and employee skills (e.g. RCEDC’s business surveys); and, 11. Decrease delinquency and truancy rates.Metrics Related to Strategy B: 1. Reduce number of teen parents; reduce teen pregnancy rate; 2. Reduce number of children in foster care; 3. Reduce number of households in poverty (especially reducing the number of female- headed households in poverty); 4. Help 100 families increase their financial and family stability through employment and wrap-around support by 2010; 5. Increase number of people earning family-sustaining income; 18 Economic Development Plan 5.0 5
Racine County Economic Development Corporation Economic Development Plan 5.0 6. Increase number of people employed to ultimately achieve the objective of full employment (i.e., 96 percent of those seeking work are successful in finding work) in every census tract in the county; and, 7. Increase number of stable, two-parent families in identified areas (such as blocks, neighborhoods, census tracts, etc.).Metrics Related to Strategy C: 1. 200 new jobs created annually during the next 5 years.Metrics Related to Strategy D: 1. Increase usage of existing public transportation methods; and, 2. Monitor utilization of selected new options designed to link job seekers with regional employment opportunities.Metrics Related to Strategy E: 1. 5% increase or 50 employers participating in county wide attraction activities; 2. 5% of employers or 15 employers hiring from recruitment activities; 3. 50 employers create internships; and, 4. 2% increase in County employment rate.Metrics Related to Strategy F: 1. 3% increase in positive attitudes about Racine – as measured by the community and business survey (especially among respondents from the targeted groups); 2. 3% Racine County population growth rate; and, 3. 1/3 of the population increase will come from net migration.Strategy A: Ensure that the educational content provided in the county’s Pre/K-12system is personalized, allowing for rigorous learning by students and engagement basedon possible career aspirations. Students will use multiple processes and technology toachieve their academic goals.Activities: 19 Economic Development Plan 5.0
Racine County Economic Development Corporation Economic Development Plan 5.0 1. The Workforce Development Board (WDB) will, on a continuous basis, collect, update, and disseminate information about existing and emerging employer-required knowledge, skills and abilities (KSAs) for key occupations and related entry-level positions; and, a. The County’s School Districts will integrate this employer-required KSA information into Pre/K-12 education curriculum, and provide professional, industry-based learning for educators b. Identify educational metrics: WKCE (WI Knowledge Concept Exam), ACT Scores, High School Graduation Rates, Attendance Rates, Truancy Rates in grades 4, 8 and 10, and Post Secondary Achievement, c. Develop comprehensive teacher development and resource network, d. Create career academies focusing on high demand employment/career areas, e. Increase articulation agreements between K-12 and higher education and f. Implement student engagement activities.Strategy B: As a foundation for ensuring more reliable, productive employees and with afocus on geographic pockets of concentrated poverty, assist and empower low-incomeresidents to function well in their day-today lives and to take responsibility forthemselves and their families.Activities: 1. AFA families meet key outcomes; a. Employed full time, 6+ months by the same employer, b. Families have verified credit score over 640, c. Families paying 30% or less of household income (includes assistance) for housing costs, d. Schooled aged children are in 3+ hours of afterschool programming per week, e. Preschoolers demonstrate healthy development (Ages 5 and under); 2. AFA families receive faith-based support, if requested; and, 3. AFA families access healthy relationship information and services.Strategy C: Provide the infrastructure for new and expanding business and industry inareas of high unemployment and identify appropriate business targets with the potentialto locate in and/or expand in these areas in order to employ the unemployed andunderemployed persons that will be educated and trained through the programsidentified elsewhere in the plan. 20 Economic Development Plan 5.0 5
Racine County Economic Development Corporation Economic Development Plan 5.0Activities: 1. Redevelopment for professional services and retail businesses; 2. Redevelopment for manufacturing and warehousing; 3. Ensure availability of business development incentive programs; 4. Provide secondary capital to businesses; 5. Expand government and business contracting by minority companies; 6. Next Generation Manufacturing (NGM) Initiative – workshops and one-on-one assistance; and, 7. Ensure a comprehensive system of entrepreneurial services for both value added and neighborhood businesses.Strategy D: Provide alternative transportation options that more clearly link underutilizedworkers in the community with employment and educational opportunities within RacineCounty and between Racine County and other counties in the region.Activities: 1. Engage the Southeastern Wisconsin Regional Planning Commission to conduct an in- depth evaluation of mass transit services within Racine County and those providing access to neighboring counties; and, 2. Create a Racine County Transit Study Advisory Committee to provide policy guidance to the SEWRPC staff conducting the study identified in No. 1 above, particularly in identifying unmet needs, evaluating transit system alternatives, and selecting a recommended plan.Strategy E: Develop diversified approaches to meet the workforce needs of employerswithin Racine County.Activities: 1. Investigate and implement alternative recruitment and marketing venues to connect skilled workers to employers; 2. Design services to connect unemployed residents to area employers; 3. Develop and deliver career ladder training; 4. Develop unified marketing products; 5. Implement innovative approaches to meet the needs of unemployed residents; 6. Develop and deliver innovative youth training initiatives; and, 7. Assess return on investment. 21 Economic Development Plan 5.0
Racine County Economic Development Corporation Economic Development Plan 5.0Strategy F: Develop a program that transforms the perception about Racine County amongcertain key “persuadable” populations.Activities: 1. Review and evaluate past image projects in Racine County: including community surveys, “Green Racine,” 2002/2003 Image project and RCCVB branding effort; 2. Coordinate with the Racine County Convention and Visitors Bureau (RCCVB) to choose a branding firm and assist in collecting information; 3. Collect and prioritize the positive attributes of Racine County and City of Racine to structure a communication plan in partnership with the RCCVB branding effort; 4. Identify target audience (“persuadable populations”) for image improvement campaign; 5. Identify messages aimed at target audience(s); and, 6. Identify effective methods for reaching the targeted audience(s).Support Partners:United Way of Racine County, RCEDC, Office of the Racine County Executive, Real Racine,Local Chambers of Commerce, Local School Districts and Private Schools, UW-Parkside andGTC. 22 Economic Development Plan 5.0 5
Racine County Economic Development Corporation Economic Development Plan 5.0 APPENDIX A EXECUTIVE SUMMARY: BACKGROUND INFORMATION AND ANALYSISINTRODUCTIONTIP Development Strategies, Inc. (TIP) and the IC2 Institute of the University of Texas at Austin (IC2)were engaged by the Racine County Economic Development Corporation (RCEDC) to develop aneconomic adjustment strategy (EAS) for Racine County. The purpose of the EAS study is to assist theRCEDC in establishing a clear vision for economic growth that will help the county in transitioning itsbase to the New Economy.Work on the EAS was carried out in three phases: Phase 1: Conduct a baseline assessment of Racine County, including measuring the economy against that of competing regions and assessing its technology capacity. Phase 2: Identify the region’s existing and potential competitive advantages, including the identification of the most promising clusters of opportunity for retention, expansion and recruitment. Phase 3: Develop a strategic plan for the county, with an emphasis on sustainable development. This plan will provide a clear, implementable plan of action to guide the efforts of RCEDC and its partners over a five-year planning horizon.The end result of the work outlined above will be a thorough understanding of the area’s economicbase and how it fits within the state and national economies; a consensus on the sectors that are apriority for retention, expansion, and recruitment; and a realistic plan for ensuring that Racine Countyis prepared to meet the challenges of the New Economy.This is a summary of Phase I and II. The complete analysis is included herewith under separate coverand entitled “Racine County Economic Adjustment Study: Background Information and Analysis.METHODOLOGYThis Attachment presents the summary findings of Phase 1 and Phase II of the EAS. The purpose ofPhase I was to gain an understanding of Racine County—its economic base, its capacity for technology,its position within the region, and the tools available to move the county forward. Phase I is dividedinto four sections: economic assessment, technology assessment, benchmarking and SWOT analysis(strengths, weaknesses, opportunities, and threats), as well as a number of appendices. 23 Economic Development Plan 5.0
Racine County Economic Development Corporation Economic Development Plan 5.0Phase II is a cluster analysis the purpose of which is to identify geographic concentrations of companiesin similar fields that serve as the economic drivers of a region, in this case Southeastern Wisconsin.Clusters benefit from the competitive advantages gained by proximity to like suppliers, customers,labor pool, capital sources, research and development, and related economies of scale. Suchadvantages can take the form of reduced transaction costs, access to skilled labor, competitiveintelligence, industry and product innovations, and opportunities for joint efforts to address commonissues.There is a strong link between the competitiveness of an area and the competitiveness of its clusters.Clusters of similar industries are more desirable than single industry drivers because of the advantagesgained by diversification. Rather then being dependent on a single large employer, clusters alloweconomic activity to be spread over many firms, of different sizes. Such an environment allows for agreater degree of entrepreneurship and innovation within the region, and more opportunities forindividuals to acquire new skills and training. All of these factors translate into more quality jobs andhigher income levels for the residents of a region, which also means a greater tax base and increasedtax revenue for the area.Our analysis relied on a number of data sources, both quantitative and qualitative. Quantitative datawere obtained from recognized published sources, including the U.S. Census Bureau, the U.S. Bureau ofEconomic Analysis, the U.S. Department of Labor, and the Southeastern Wisconsin Regional PlanningCommission. Qualitative data were gathered through the work of five task forces organized around keyissues identified by the steering committee: Business climate (including technology issues); image andmarketing; infrastructure (both traditional and technology-related); sustainability; and workforce andeducation. The task forces were comprised of representatives from the business community, as well aspublic officials and economic development related groups selected by the RCEDC. A total ofapproximately 85 people participated in the task force meetings, held in July and August of 2001. Inaddition to the insights gleaned from the task force members, TIP Development Strategies conducted anumber of interviews with business owners, academic personnel, and state agency staff.The information presented in this report is based on the most current data available at the time ofpublication. The vast majority of the data, however, was collected prior to the start of the economicdownturn that began in 2000. And all of it was gathered prior to the attacks of September 11, 2001,that have deepened the economic woes of many industries and, arguably, pushed the country intorecession. Where possible, we tried to account for changing economic conditions. For example, wecompared our analysis of the county’s industrial base against information from the WisconsinDepartment of Workforce Development regarding plant closings and layoffs. It was not possible,however, to anticipate the effects of the economic downturn in general and the terrorist attacks inparticular.Given the fact that the EAS will likely be implemented during a recession, at least initially, the dataand recommendations it contains should be considered in the context of the impact of currenteconomic conditions on existing businesses in Racine County. Among the implications of economicactivity under these conditions are the following: Business recruitment—Targeted industries should be viewed with an eye towards which of those industries are counter-cyclical. Business that are the beneficiaries of government 24 Economic Development Plan 5.0 5
Racine County Economic Development Corporation Economic Development Plan 5.0 spending, such as defense, may become more attractive for recruitment do the likelihood of the passage of stimulant packages during economic downturns. Business retention—Increased emphasis should be placed on the retention of businesses during periods of recession. Increased cost pressures can result in the loss of both struggling small businesses and major employers. RCEDC and its partners should consider what their organizations can offer to existing businesses to increase their productivity and improve their bottom line. Entrepreneurship and spin-offs—Recessions can actually increase the opportunities for spin- offs and entrepreneurial activity because of the presence of displaced workers. The traditional governmental response to layoffs and plant closings is to focus on job training and welfare programs. Creating entrepreneurial opportunities for displaced workers should be given serious consideration as a strategy for RCEDC, and its partners, particularly the Center for Advanced Technology (CATI) and the Workforce Development Center.SUMMARY OF PHASE IDEMOGRAPHICS, EMPLOYMENT AND INDUSTRY DATA, QUALITY OF LIFE ANDINFRASTRUCTURERacine County has many of the elements that defined success under traditional economic developmentmodels—location in close proximity to two major metro areas, a significant manufacturing basecomprised of an enviable number of internationally recognized companies, good transportationinfrastructure, an agreeable quality of life, and leaders that are committed to their community. Theseelements in and of themselves are no longer sufficient for success in the New Economy. As a result,Racine County is losing ground in comparison with other counties in the Southeastern Wisconsin region,as well as with other benchmark communities in the nation. The following provides a summary ofcurrent trends. 1. Population Growth: Racine County has experienced moderate population growth during the last decade, increasing by nearly 8 percent between the 1990 and 2000 Census. This rate of growth, however, was significantly less than that experienced by the state of Wisconsin (9.6 percent), and the nation as a whole (13.2 percent). When compared with the other counties that comprise the Southeastern Wisconsin region, Racine County’s growth rate trailed all but Milwaukee County, which actually lost population. If the analysis is expanded to include the entire Chicago-Milwaukee corridor, only four other counties in the 19-county area (Milwaukee, Cook, Kankakee and Lake (IN)) grew at a rate at or below that of Racine. 2. Population Distribution: Racine County’s population growth over the last decade has been unevenly distributed among the county’s 18 municipalities. In general, the western portion of the county saw the greatest percentage increases, with the village and town of Waterford experiencing the most growth in percentage terms (67 percent and 40 percent, respectively). 25 Economic Development Plan 5.0
Racine County Economic Development Corporation Economic Development Plan 5.0 Other eastern communities, such as Racine, Wind Point and Elmwood Park—each of which borders Lake Michigan— experienced the county’s only percentage losses during the decade.3. Population Migration: Unlike the other counties in the Southeastern Wisconsin region, migration appears to have played little role in Racine County’s growth. Less than 20 percent of the county’s population growth between 1990 and 1999 can be attributed to net international and domestic migration; natural increase (when the birth rate exceeds the death rate) accounts for the remainder. An analysis of ten years of county-to-county migration data from the IRS (see Figure II-2) indicates that Racine has experienced a net loss in the number of tax returns filed from within the county in each period examined, except one (1990 to 1991). In other words, more tax filers left the county each year after 1991 than entered it. While it appears that many of those leaving the county are staying in the Southeastern Wisconsin region, approximately one-third of the out-migrant tax returns (those that had a Racine County address in one year and a different address in the subsequent year), have listed addresses outside of the state, indicating that there may be some statewide factors entering people’s decision to leave.4. Age Distribution of the Population: Like the rest of the country, Racine has seen a drop in the percentage of the population that is between the ages of 25 and 34. Racine has seen a sharper decrease in this important age group than either the state of Wisconsin or the country as a whole. The county is also losing ground in this age group at rate faster than the state (14.1 percent).5. Racial Background: While Racine County is more racially and ethnically diverse than the state of Wisconsin, its diversity has not yet approached that of the nation as a whole. When viewed in terms of percent increase within the category, the number of Hispanics in Racine County grew by nearly 70 percent. Despite the significant increase in the Hispanic and Asian population, Blacks remained the largest racial group in the county.6. Income Levels: When compared to the entire Southeastern Wisconsin region, however, Racine’s income level was significantly below several counties in the region. Although Racine County’s income growth has outpaced the nation’s during the last decade, it has not kept paced with the state of Wisconsin or with many of its neighboring counties.7. Poverty Levels: While not nearly at Milwaukee’s level, Kenosha and Racine counties had much higher poverty rates than the remainder of the region.8. Educational Attainment: Racine County residents had levels of educational attainment in 1990 that were similar to residents of the state of Wisconsin or the nation as a whole. Racine’s educational attainment was significantly lower, however, than many of its counterparts in Southeastern Wisconsin. 26 Economic Development Plan 5.0 5
Racine County Economic Development Corporation Economic Development Plan 5.09. Labor Force Information: Approximately 23 percent of Racine County’s labor force was employed in manufacturing operations in 2000. This figure is down from 34 percent in 1980, but is still well above state and national figures for 2000 (22 percent and 14 percent, respectively). Racine County faces unemployment rates above the state and national average. Unemployment is particularly high in the City of Racine, which registered rates more than double that of either Wisconsin or the U.S in June 2001. Unemployment rates in the Racine area have not followed national trends during the latter part of the 1990s. While the U.S. experienced steady declines during this time, in the unemployment rate in the city of Racine and the Racine PMSA has shown an overall increase. Racine County had the lowest labor force participation rate in the Southeastern Wisconsin region in 1999, with only 65 percent of the labor force eligible population employed or actively seeking employment. By comparison, the state’s participation rate was slightly more than 72 percent; the U.S. had a rate of approximately 67 percent.10. Job Growth: Racine County experienced relatively slow job growth at the end of the last decade. While the number of full- and part-time jobs in the nation increased by 10 percent between 1995 and 1999 (the most recent year for which data are available), the number of jobs in Racine County increased by only 4 percent during this time.11. Commuting Population: Racine has a net outmigration of commuters, with approximately 7,200 more commuters leaving the county for work than there are commuters coming into the county. As would be expected, the greatest drain of commuters was to the north, with nearly 10,000 Racine area residents citing Milwaukee County as their place of work. Racine County experienced an inflow of earnings in excess of $1 million in 1998, and an outflow of earnings of approximately $450,000. In other words, more money flowed into the county, than flowed out of the county.12. Occupational Information: Employment levels in these high-paying positions were relatively low, with the exception of general and operations managers, an occupation that described approximately 1,200 people in 1999. By contrast, several of the lowest-paying occupations had relatively high levels of employment. Several of the least common occupations were computer-related jobs, such as computer specialists, database administrators, and computer programmers. The small number of people employed in these occupations reflects the weakness of this important industry in the county.13. Manufacturing Employment: Racine County has a significant manufacturing base, with 6 of the county’s top 10 industry groups belonging to this sector. Some of these industries have high location quotients and include major employers offering high paying jobs, such as SIC 284 Soap, Cleaners and Toilet Goods (SC Johnson) and SIC 352 Farm and Garden Machinery (Case/New Holland). Many of the county’s largest industries, however, are lower wage service sector jobs, 27 Economic Development Plan 5.0
Racine County Economic Development Corporation Economic Development Plan 5.0 such as 581 Eating and Drinking Places, 806 Hospitals, 736 Personnel Supply Services, and 531 Department Stores. These four industry groups taken together employed more than 12,000 people in 1999, 13.8 percent of the county’s labor force at that time, slightly above the state figure of 13.1 percent. According to estimates obtained from the Wisconsin Department of Workforce Development (DWD), more than 15,000 people have been affected by plant closings and layoffs in Southeastern Wisconsin since 1999. Approximately 3,500 of these jobs were in Racine, Kenosha and Walworth counties. Despite some declines, agriculture and agribusiness continue to play a key role in the state and local economy. The sector’s importance can be seen in the fact that two agricultural industries emerged among the top 10 areas of specialization in our location quotient analysis: Crop Services (SIC 072) and Vegetables and Melons (SIC 016).14. Small Business: Non-employer establishments are slightly underrepresented in Racine County. Although the county is home to nearly four percent of the state’s population, it accounts for less than three percent of its non-employer establishments. Proprietors’ income played a smaller role in the earnings of Racine County residents in 1999 than in other counties in the region. Non-proprietor income accounted for only 6.2 percent of total earnings in Racine County, while just over 10 percent of Walworth County’s earnings were derived from this source. All of the counties in the region, as well as the state as a whole, are below the national figure of 11.3 percent on this indicator. Racine County experienced 137 new business starts in the last 12 months (Table II-25). This represents 2.5 percent of the new business starts in the state during the same period, ranking Racine 8th out Wisconsin’s 72 counties. When viewed in terms of the rate of business starts (i.e., new business starts per 100,000 residents), Racine County’s ranking plummets to 62nd.15. Access to Capital: Access to venture capital is a problem for the Midwest as a whole, and Wisconsin in particular. Wisconsin received less than 0.2 percent of the venture capital investments made in the first quarter of 2001. Data from the Chicago Federal Reserve Bank was analyzed to determine the LTD ratio for the region in 2000. At 1.09, the region’s bank LTD ratio was above the state’s ratio of 100, which may indicate a more liberal lending climate.16. Cost of Living: The most recent CPI available for the Milwaukee-Racine CMSA was 171.8, indicating a cost-of-living well below the national index of 176.6 for the same period. The Milwaukee-Racine metro experienced a 1.3 percent change from its prior index of 169.6 (2nd half of 2000), below the national increase of 1.7 percent. The county has experienced a somewhat sharper rise in home prices—16 percent—in the last few years than most of its neighbors. Only Kenosha County experienced a greater increase, with sale prices rising by just over 17 percent since 1997. 28 Economic Development Plan 5.0 5
Racine County Economic Development Corporation Economic Development Plan 5.0 Another component of cost of living in which Racine fares well relative to other areas in the state is food costs. Racine ranked 25 out of the 26 communities covered by the Wisconsin Farm Bureau Federation’s Market Basket Survey, a monthly survey that compares the cost of a 40- item basket of groceries.17. Tax Burden and Tax Base: According to the Tax Foundation, a non-profit research group that monitors tax and fiscal activities of government, Wisconsin residents face the 7th highest tax burden in the country in 2001. When only state and local taxes were analyzed, Wisconsin moves up to 3rd place, with an effective combined state and local tax rate of 11.9 percent. Only New York and Maine residents face higher state and local tax burdens. In addition a high state tax burden, figures compiled by Milwaukee’s Public Policy Forum indicate that Racine County residents faced one of the highest net property tax rates in the region in 2001. Only Milwaukee County had higher net tax rates according to the study. The City of Racine had the highest net tax rate in the county. It was the only city outside of Milwaukee County to rank in the top 20, with the 14th highest net tax rate among the 68 cities and villages in the study. Figures released by the Wisconsin Department of Revenue in August 2001 rank Racine County 70th out of the state’s 72 counties in terms of growth in the equalized value of its property between 2000 and 2001. Racine’s equalized value increased by only 5.5 percent during this time, well below the state total of 9.1 percent. Of the seven-county region, only Milwaukee had lower levels of equalized value on a per capita basis.18. Open Space: Between 1990 and 1995, open space in the county declined by slightly less than 2 percent, or about 3,000 acres. This figure is nearly identical to regional patterns, as open space in the region declined by 29,000 acres, or about 2.2 percent.19. Education: An analysis of RUSD’s performance versus other metropolitan area school districts in the state released by Milwaukee’s Public Policy Forum in December 2000 highlighted several of the same issues. Of the ten districts included in the analysis, RUSD had the highest dropout rate, the lowest graduation rate and the highest out-of-school suspension and expulsion rates. Southeastern Wisconsin has access to a significant network of institutes of higher education, including 17 colleges and universities, and four technical/vocational colleges. In addition to supplying a potential labor pool, access to these institutions provides area businesses and institutions with a tremendous opportunity for collaboration.20. Crime: Racine County’s crime rate, as indicated by the number of indexed crimes reported, was lower than that of the United States in 1997 (Table II-32). Racine County experienced a higher level of criminal activity, however, when compared to neighboring Kenosha County or to the state as a whole. 29 Economic Development Plan 5.0
Racine County Economic Development Corporation Economic Development Plan 5.021. Health Care: While there is little published data on health care quality, the Places Rated Almanac (Millennium Edition), rated the Racine metropolitan area 327 out of 354 metro areas in the U.S. and Canada on the availability of health care.22. Transportation: While traffic congestion within the county itself does not appear to be an issue, it is a problem along I-94. Although designated as a “rural freeway,” the stretch of I-94 between Milwaukee and the Illinois state line has the highest volume of traffic of any freeway in its class. At present, this congestion is largely limited to Milwaukee County. The SEWRPC study, however, indicates that traffic congestion will continue to “radiate” outward to surrounding counties, with severe to moderate congestion forecast for Racine County by 2020. In addition to concerns about I-94, upgrading the county’s road network was identified as a major concern by the infrastructure task force. Task force participants indicated the need for continued focus on the development of a regional network, with emphasis on connectivity beyond the county’s borders. A number of rail initiatives, addressing both commuter and passenger rail, have been proposed for Southeastern Wisconsin. Providing alternative methods of transportation can help to increase the attractiveness of the area for both employers and workforce. Although each of the proposals is significant, perhaps the most important is the extension of commuter rail from Milwaukee to the Kenosha Metra line. Southeastern Wisconsin has a well-balanced system of 23 public-use airports. General Mitchell International Airport, located less than 7 miles north of the Racine County line along SH-38, is the region's commercial air carrier airport. While there is no longer an operating port in Racine, there is an active harbor that has undergone extensive redevelopment in recent years. Task force members expressed interest in the future of the harbor, with at least one member calling for the development of a long-range plan.23. Traditional Infrastructure: Few members of the Infrastructure Task Force mentioned issues with the county’s water supply, outside of mechanical issues involved in getting water to the western part of the county in light of the state’s watershed-based approach. Concern about overall water quality was voiced during the Sustainability Task Force meeting, as it relates to lakes and streams, as well as groundwater. The Infrastructure Task Force cited the lack of a sewer agreement in eastern Racine as the number one economic development issue facing the county. It was not accorded the same level of importance, however, by community leaders west of I-94.24. Technology Infrastructure: The RCEDC, along with representatives from Kenosha and Walworth counties, is participating in a comprehensive assessment of the area’s technology infrastructure. It is anticipated that the project will result in a comprehensive inventory of the technology infrastructure of the region and an understanding of the steps that must be taken to improve this technology for both businesses and residents. 30 Economic Development Plan 5.0 5
Racine County Economic Development Corporation Economic Development Plan 5.0 Task force members listed telecommunications as the number one issue in terms of technology infrastructure across the county. 25. Utilities: According to the Regional Economic Partnership, electric rates in the region are recognized as being among the lowest in the nation. Task force members did not list electric capacity as an issue; however, they cited instances of power interruptions during peak usage periods in recent years. Some task force members expressed concern about the rising cost of natural gas, citing increases of as much as 200 percent over the previous year, however, this kind of increase was experienced nationwide and does not necessarily represent an issue specific to the region. 26. Industrial Park Land: A 1999 study conducted the Southeastern Wisconsin Regional Planning Commission found that Racine County was facing a severe shortage of industrial park land. The study concluded that if development trends of the 1990s continued, the county’s industrial park lands would be fully developed within eight years. The lack of adequate industrial land presents a significant barrier to economic development efforts, dramatically limiting the county’s ability to attract new business or to accommodate the expansion needs of existing business.TECHNOLOGY ASSESSMENTFour factors are critical to the development of the fast-growth companies that drive technology-basedeconomic expansion: (1) technologies--a continuing source of innovations that can become the basis ofnew ventures; (2) talent--a highly skilled workforce at all levels; (3) capital--access to financing from avariety of sources and a way for investors to realize a return on their investment; and (4) know-how--an entrepreneurial support structure of mentors, advisors, role models, and service providers.Technology: 1. Like other mid-sized regions, the Racine PMSA has few public and private organizations concentrating on research and development (R&D) on an on-going basis. There are, however, several institutions within the seven-county Southeastern Wisconsin region that exhibit pockets of research strength that may lead eventually to the formation of new companies in the region. The most significant of these is the Medical College of Wisconsin, which is a nationally recognized, R&D-focused university. 2. Data on Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) awards, which capture only R&D by small businesses, do not suggest strong R&D concentrations in Racine County’s private sector. 3. Patent data, by comparison, indicate that Racine is fairly strong in relation to comparable regions. 31 Economic Development Plan 5.0
Racine County Economic Development Corporation Economic Development Plan 5.0 4. When viewed in its entirety, the R&D trends suggest that Racine County lacks an “engine” for consistently spinning out the technologies from research and development. Without specific intervention, new technologies and emerging companies will not be forthcoming in great numbers.Talent: 1. On elementary and secondary education and several community education dimensions, the Racine PMSA ranks in the middle of the benchmarked regions, as illustrated in a later section of this chapter. 2. Generally Racine ranks behind Burlington, Manchester, and Cedar Rapids and on a par with most of the other regions, depending on the particular dimension or metric. Racine does not exhibit particular strengths on any given metric. 3. The workforce composition data on engineering and information technology occupations suggests there is technological talent to build more technology-based products and new companies within the region. 4. As with education, Racine generally ranks in the middle of the benchmarked regions on engineering metrics and on information technology.Capital: 1. Based on the quantitative and qualitative information for the Milwaukee-Racine region and the State of Wisconsin, limited capital and financing is available for emerging companies. Milwaukee-Racine ranks 38 out of 50 major metropolitan areas in terms of venture capital and initial public offerings. 2. For four measures (venture capital, SBIC financing, loans to small business, and a personal income metric) the State of Wisconsin generally ranks in the middle quintile nationally; however, the state's ranking is lower than those of Midwestern peer states. 3. Considerable progress has been made in the last several years, and available risk capital tends to be self-perpetuating in a region. As successful emerging companies develop in the State of Wisconsin and Southeastern Wisconsin in particular, more capital will likely be available to fund additional start-ups.Know-How: 1. Extensive data present a fairly cohesive pattern: the quantitative technology comparisons show Racine in the middle to lower tier of the peer group and national metro areas on most of the metrics. 32 Economic Development Plan 5.0 5
Racine County Economic Development Corporation Economic Development Plan 5.0 2. The data are limited yet promising about the region’s entrepreneurship and the state’s overall climate for small business. Outstanding resources exist in Madison and Milwaukee with which to link. 3. The resources described in the section on Know-How, along with TechStar and CATI, offer Racine County substantial capacity and expertise in generating higher wage positions and a more diversified regional economy.BENCHMARKING – A COMPARISON OF RACINE COUNTY’S ECONOMIC SITUATIONWITH THAT OF SIX OTHER METROPOLITAN AREAS 1. Introduction: The selection of benchmark regions was based on a number of demographic and economic factors, including population size and rate of growth, the racial and ethnic composition of the area, per capita income levels, and a manufacturing-based economy. The goal of this phase of the study was to identify communities that were similar to Racine, but that might be at different points along the path to the New Economy. This chapter compares the Racine primary metropolitan statistical area (comprised of Racine County) with the following metropolitan areas: Burlington, Vermont; Cedar Rapids, Iowa; Hamilton-Middletown, Ohio; Manchester, New Hampshire; and Waco, Texas. Neighboring Kenosha County was also included. 2. Population Growth: While the other metro areas experienced population growth rates between roughly 12 and 17 percent from 1990 to 2000, Racine was the only metro region in our study that grew at single digit rates during the period. 3. Racial and Ethnic Diversity: In terms of racial and ethnic diversity, Waco, Texas, was the only metro area in the study that was more diverse than Racine. Like the rest of the nation, each of our benchmark metropolitan areas experienced significant increases in their minority populations 4. Educational Attainment: There were dramatic differences in educational attainment among the benchmark areas as reported in the 1990 Census, the most recent year for which these data are available. Thirty-five percent of Racine area residents aged 25 years or older reported high school or high school equivalency as the highest level of education achieved, a full five percentage points above the national figure. Accordingly, the percentage of Racine area residents in that age group that reported holding a four-year degree or higher in 1990 was nearly four percentage points lower than the nation as a whole. 5. Manufacturing: While each of the metro areas exhibited levels of manufacturing employment in excess of national averages, it is critical to note that none were as high as those found in Racine. In each of the periods studied, manufacturing employment in the Racine metropolitan area far surpassed any of the other benchmark areas, including neighboring Kenosha. Although the Kenosha metro area had similar levels of manufacturing employment in 1980, they experienced a significant drop by 1990, recording levels that were more in line with those found in the other study areas. 33 Economic Development Plan 5.0
Racine County Economic Development Corporation Economic Development Plan 5.0 6. Composition of the Economy: Between 1990 and 1999, each of the benchmark metro areas saw a shift in the composition of their economy away from manufacturing towards a more service- based economy. 7. Tax Base: To obtain an indication of tax base growth, we collected data on the total assessed value of property for each of the benchmarked MSAs over a ten-year period. Kenosha County experienced the highest level of growth of all the areas analyzed, with the total value of all property increasing by more than 88 percent during the decade. Racine County assessed values also increased significantly, rising by more than 70 percent during the same period. 8. Economic Growth: Policom’s methodology “rewards the areas that have had the fastest, most consistent growth over an extended period of time. Communities which have a history of ‘boom and bust’ are typically ranked lower than area which had a slower, but much more consistent growth pattern.” According to Policom’s formula, Burlington had the strongest economy of the six regions, ranking 75th out of 318 metro areas in 2001. Kenosha had the lowest ranking of the six communities in 2001 at 269, well below Racine, which was ranked 129th. The data for the 2001 rankings covers the period 1975-1999, which may help explain Racine’s relatively high ranking. 9. Gross Metropolitan Product: Gross metropolitan product (GMP), defined as the value of goods and services produced in metropolitan areas, provides another measure of economic vitality. Kenosha and Racine ranked lowest in dollar value at 291 and 230, respectively. There was a significant difference between the two metro areas, however, in the rate of GMP growth. While Kenosha’s gross metropolitan product increased by nearly 90 percent, ranking the MSA 96 in the nation, the Racine MSA saw an increase of only 66 percent, earning it a ranking of 229 out of 319 metro areas analyzed. 10. Job Growth: Data on job growth from the Places Rated Almanac provides another indicator of the general economic strength of each of the benchmark areas. Racine had the lowest overall score of the benchmark areas, ranking at 308 out of 354 metro areas analyzed. Racine was the only one of the seven metro areas analyzed for which the threat of unemployment was deemed to be above average. 11. Exports: Another indication of the health of an economy is its ability to export goods outside the local area. The dramatic increase in exports seen in Kenosha between 1995 and 1999, as well as the significant decline experienced in Racine during the same period are worth noting. Given the fact that the Racine-Kenosha area serves as a center for both headquarters and manufacturing operations for a number of major companies, the striking differences in export sales may indicate actual differences in the economic health of the two counties.SWOT –STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATSA SWOT analysis—an examination of a region’s strengths, weaknesses, opportunities, and threats—is animportant early step in the preparation of an economic adjustment strategy. The purpose of the SWOTanalysis is to identify key issues that will inform subsequent strategic work. To accomplish this task, we 34 Economic Development Plan 5.0 5
Racine County Economic Development Corporation Economic Development Plan 5.0relied on data from published sources; information gleaned from task force meetings involving keyindividuals in the community; and the experience of the consulting team.1. Strengths Geographic location2. Challenges Quality of life Significant manufacturing base3. Opportunities Worker productivity4. Threats Innovative programs and partnerships Access to institutes of higher education Ongoing planning and development efforts Intergovernmental coordination Integration of east and west Racine County Image and marketing Lack of industrial parkland Personal tax burden Entrepreneurial climate Access to capital Quality of life Educational attainment Population growth/migration Technology infrastructure Land use planning Location between Chicago and Milwaukee Commuter rail Promoting Racine County regionally Racine Center for Advanced Technology and Innovation (CATI) Redevelopment opportunities Wisconsin Smart Growth initiative Existing manufacturers Technology Development Zone program Fiber optic network Linkages with higher education Ethnic and racial diversity Continued decline of manufacturing Per capita income Aging population “Brain drain” Perception of unions Social equity Impacts of growth Air quality35 Economic Development Plan 5.0
Racine County Economic Development Corporation Economic Development Plan 5.0SUMMARY OF PHASE II: CLUSTER ANALYSISINTRODUCTIONBased on our quantitative and qualitative analyses of the region’s major private industries, the consultingteam has identified several clusters that currently serve, or have the potential to serve, as economicdrivers of the Racine County area. These clusters have been divided into four tiers based in part on theopportunity they present for future growth.Tier 1: Technology/Business Services ClustersThe following clusters represent the most significant opportunities for Racine County to diversify itseconomic base away from traditional manufacturing industries. These clusters were identified based ontheir strength within the region, as well as on national trends. Several of the industries represented inthese clusters supply traditional industries, like the automotive industry, as well as emergingindustries. Others, like computer services, can serve local businesses while accessing national markets,providing significant potential for entrepreneurial development. Many of the industries, like medicalinstruments, are less-labor intensive with sophisticated technology, allowing them to be more nimblein response to market fluctuations. Microelectronics (SIC 367) Measuring and Controlling Devices (Including timekeeping instruments) (SIC 382, 387) Medical and Dental Laboratories and Instruments (SIC 384, 807) Multimedia and Computer Services (SIC 737, 781) Professional Business Services (SIC 731, 811, 871, 872, 873, and 874)Tier 2: Traditional Clusters, with OpportunityThe clusters outlined below are more traditional industries, which represent opportunities forcontinuing employment growth in the region. While some of the industries contained in these clustersmay not have experienced a high level of national growth, they are of regional importance. Forexample, the addition of the Food and Kindred Products cluster recognizes the importance ofagriculture to the region, as well as the location of a number of leading companies in the industry. Theremaining clusters in this tier, while traditionally associated with established industries, have thepotential to supply technology-related industries, providing the opportunity for export outside theregion. Food and Kindred Products (SIC 20) Rubber and Miscellaneous Plastic Products (SIC 305, 306, and 308) 36 Economic Development Plan 5.0 5
Racine County Economic Development Corporation Economic Development Plan 5.0 Metal Services, NEC (SIC 347)Tier 3: Highly Specialized, but Declining ClustersNo analysis of clusters in Southeastern Wisconsin would be complete without a discussion of the twomajor industries that have traditionally dominated the region in terms of employment—metal andmetal fabrication, and industrial machinery. These two industry clusters employed more than 70,500people in the region in 1999. In recent months, however, a number of layoffs and plant closings haveoccurred, highlighting the need to decrease the region’s reliance on these industries. Metal and Metal Fabrication (SIC 331, 332, 335, 336, 339, 341, 342, 345, 347, 349) Industrial Machinery (SIC 351, 352, 353, 354, 355, 356, 358, 359)Tier 4: European HeadquartersSince 1992, the RCEDC, on behalf of Racine County, has been relatively successful in attracting theNorth American headquarters of European companies. This success has not been the result of anytargeted business attraction effort, but rather the interest of these companies in the Midwest,specifically the Chicago area, and their knowledge of Racine County as a part of this broader region.The companies that have chosen to locate either a North American headquarters or location in RacineCounty include the following: 1) Danfoss Fluid Power (Denmark), subsequently relocated outside of Racine County 2) Putzmeister, Inc. (Germany) 3) Poclain Hydraulics (France) 4) Alloc (Norway)In addition, there are several other companies, including Case New Holland and SC Johnson, whichhave an international presence and/or are owned by European corporations. For example, Case NewHolland is now owned by Fiat of Italy.Based upon this success and the continued interest of European companies in doing business inAmerica, it is logical to extend the cluster analysis to include as a targeted industry European andother foreign companies that may be interested in establishing North American headquarters orcompany locations in Racine County. Since there is no means of identifying headquarters operations inpublished data, this tier will not be analyzed further in this report.Major EmployersIn addition to the specific clusters identified above, this report will look at four major employerslocated in the county: SC Johnson, Case New Holland, Bombardier and Nestlé’s. While these individualemployers do not represent clusters in and of themselves, they do have a significant impact on RacineCounty. 37 Economic Development Plan 5.0
Racine County Economic Development Corporation Economic Development Plan 5.0 HIGHER EXPECTATIONS A Workforce Development Strategy for Racine County Adopted by the Racine County Workforce Development Board May 200838 Economic Development Plan 5.0 5
Racine County Economic Development Corporation Economic Development Plan 5.0Table of ContentsHigher Expectations: A Workforce Development Strategy for Racine County ... ............................................................. .. ii Preface and Leadership Acknowledgements ..................................................................................................................................................................... iiIntroduction ............................................................................................................................................................................... .42Vision ... ..................................................................................................................................................................................... .43A Call to Action... ...................................................................................................................................................................... ..45 1. Raising standards and expectations for public education ... ......................................................................................................................................47 2. Supporting stronger, more financially stable families ................................................................................................................................................. 51 3. Creating jobs in communities with concentrations of unemployed workers ... ................................................................................................... .. 53 4. Enhancing workforce transportation alternatives ... ................................................................................................................................................... 55 5. Improving jobseeker information about opportunities in new and expanding companies ... ............................................................................ .. 57 6. Communicating a more positive community image ... ............................................................................................................................................... 60Appendix 1: Racine’s Workforce in Context ... ........................................................................................................................ 62 Racine County Population Growth Patterns ................................................................................................................................................................... 64 Racine County’s Workforce Composition ....................................................................................................................................................................... 69 Manufacturing’s Long Term Decline in Employment ... .................................................................................................................................................. 71 Services Sector Growth ................................................................................................................................................................................................... 74 Location in the Chicago/Milwaukee Corridor .................................................................................................................................................................. 77 Education as a Key to Workforce Success ..................................................................................................................................................................... 79 Impact of Educational Attainment on Income ................................................................................................................................................................. 82 The Inner City Workforce ................................................................................................................................................................................................. 85 Aligning Workforce Investments with High Growth Potential ......................................................................................................................................... 88Appendix 2: The Planning Process ....................................................................................................................................... 93 Community Kick-Off and Issue Identification .................................................................................................................................................................. 93 Issue Narrowing and Initial Strategy Identification ... ...................................................................................................................................................... 94 Strategy Formulation and Narrowing ... ........................................................................................................................................................................... 95 Strategy and Tactics Finalization ... ................................................................................................................................................................................. 95 39 Economic Development Plan 5.0
Racine County Economic Development Corporation Economic Development Plan 5.0Higher Expectations:A Workforce Development Strategy for Racine CountyPreface and Leadership Acknowledgements In the spring of 2007, the Racine County Workforce Development Board (RCWDB)recognized the need to assemble leaders from across the county to develop a workforcedevelopment strategy. The purpose of the strategy is to create a community-wide consensus abouthow county businesses and citizens can prepare to adapt to a changing economy. In calling thecommunity to action, the Board recognized that Racine’s future economic prosperity depends onclearly articulating the needs of its existing business community as well as anticipating the needs ofnew economic drivers. The RCWDB would like to thank those who gave of their time and ingenuity to develop this plan.Strategic Planning Steering CommitteeTo lead the planning effort, the RCWDB created a Strategic Planning Steering Committee tomanage this process. The Steering Committee members served as the leadership body, theconveners of community representatives to participate in and contribute to the planning process, andas the primary interface with the external consultants who were selected to facilitate the strategicplanning process. Serving on the Steering Committee were: ii 40 Economic Development Plan 5.0 5
Racine County Economic Development Corporation Economic Development Plan 5.0Strategic Planning Advisory CommitteeThe Steering Committee sought input from across the county, and the Board isparticularly appreciative of the efforts of a county-wide advisory committee - comprised ofindividuals from different community, business, philanthropic, academic, and governmentorganizations. The advisory committee participated in three planning retreats at theWingspread Conference Center to help articulate key workforce challenges, provide inputinto the plan’s framework, and review elements of the plan. Committee members were: 41 Economic Development Plan 5.0
Racine County Economic Development Corporation Economic Development Plan 5.0Higher Expectations:A Workforce Development Strategy for Racine CountyIntroduction Workforce development in Racine County is at a crucial crossroads. We can eitherbelieve that our current reactive response to the global trends affecting our workforce isadequate to meet our needs, or we can demand of ourselves a more proactive approachto face our underlying issues head on. Some of our most critical concerns are that:• Even though employment in the manufacturing sector has been in decline for three decades, thereis a persistent shortage of skilled employees to fill key technical manufacturing occupations.• Job losses in the manufacturing sector have predominantly been in occupations that historicallypaid well but required lesser skills and subsequently leave dislocated workers poorly prepared foranything other than lower wage jobs.• Traditional labor-intensive jobs are being replaced by more technology and knowledge-intensiveemployment options requiring ever increasing skills and competencies.• Entry-level jobs frequently are left vacant because applicants either cannot pass required drugtests and background checks or lack the necessary “soft” skills (such as motivation, punctuality andattendance) to be successful.•Unemployment outside the City of Racine has maintained a relatively healthy rate at or near fullemployment while joblessness in the City of Racine has surged to 9.5 percent.• While our schools are providing a good education for many students, too many young adults aredropping out before they finish, preventing them from realizing their full potential.• Only 77 percent of the county’s ninth graders (and 71 percent of those in the RacineUnified School District) achieve their high school diploma within four years.• For those who do graduate from high school, a diploma may not accurately signifyeither 12th grade competency or employability in key growing occupations.• While Racine County has an enviable quality of life, too many residents view ourcommunity in negative terms which impacts employee recruitment and retention.• While the vast majority of residents are employed and have incomes sufficient to maintain a goodquality of life, too many are trapped in a cycle of poverty that can thwart them in developing the skillsrequired to secure sustainable employment.• For many struggling to balance life and work obligations, affordable transportation toand from the workplace is increasingly an issue. Each of these concerns could represent a deterrentto growth. We believe that we should take proactive steps to shape our future. 42 Economic Development Plan 5.0 5
Racine County Economic Development Corporation Economic Development Plan 5.0Vision By 2020, we seek to develop a vital, dynamic economy characterized by a workforce that is fullyprepared for the world of work. Any qualified person who seeks to work in Racine County shouldbe able to find a satisfying experience. To achieve this vision, we will need to:• Continue to meet the workforce needs of our existing employers as they grow andadapt to changing market and economic conditions.• Collaborate to prepare employment-ready workers for the emerging industries (as identified inour economic development plan) that will drive our county’s future economy.• Work with a coalition of educational, private, public and faith-based organizations to address theroot causes of chronic underemployment in the County, particularly in sections of the inner city of theCity of Racine.Racine County is poised for a great future. Geographically, we are well positioned in the Chicago-Milwaukee corridor for future economicgrowth and development. The County has plentiful greenfield space prepared with appropriateinfrastructure to support development as well as access to the amenities of Lake Michigan. Wealso have plentiful supplies of water to support further development and an electric grid that is wellpositioned to handle increased energy demand. We are already the headquarters for several international, national and regional companies andhave attracted a number of overseas-based firms to our community.Our workforce has demonstrated a good work ethic and generally enjoys a good quality of life. Community leadership has been active in addressing key issues, such as the development of acounty economic development plan, the revitalization of downtown and the lakefront of the City ofRacine, the extension of infrastructure to the Interstate 94 and along the WI State Highway 36Corridors, and the launch of a sustainable development initiative. Culturally, Racine County benefits from regional access to numerous higher educationalinstitutions, museums, a symphony, a theatre guild, a zoo, several ethnic festivals and a host ofathletic and cultural events. The County’s proximity to Milwaukee and Chicago allows its residentseasy participation in the cultural and sporting activities of these cities as well. 43 Economic Development Plan 5.0
Racine County Economic Development Corporation Economic Development Plan 5.0 But to take full advantage of its potential and to avoid potentially detrimental effects resultingfrom inaction, the time has come for Racine County and its residents to focus on the institutionalbarriers that constrain our workers and to invest in sustaining their future. Many of our citizens facethe twin challenges of relatively low educational attainment and high unemployment. We cannot letthese challenges continue to limit the potential of our workforce. To allow these conditions tocontinue unchecked will assuredly sap our economic strength and diminish our prospects for thefuture. To be successful, we will require effective leadership, consensus building, cooperation and commitmentacross a broad range of community organizations. Success will also require measurable goals, action,accountability and perseverance over time. In developing the following goals and strategies, we have reached out to the various workforceconstituencies to validate the issues raised and the approaches under consideration. We have beenencouraged by the positive responses from employers, educators, public officials andadministrators, community leaders, as well as representatives from the African-American andHispanic communities. All agree that the time has come to address our workforce issues directlyand effectively - particularly the challenges created by low educational attainment and highunemployment. Everyone understands that these are difficult challenges - that there are no easy answers, noquick fixes. Most urban communities throughout the nation are facing the same dilemmas. Wehave scanned the horizon for national best practices that might be applicable to our situation.However, our goals and strategies are mostly homegrown and address the priorities as we seethem. We are trying to shine a bright light on those things that need to be achieved, determine howand when we need to achieve them, and then monitor our progress toward success. 44 Economic Development Plan 5.0 5
Racine County Economic Development Corporation Economic Development Plan 5.0A Call to Action Racine County is poised for a future of prosperity. Our traditional employers are transformingthemselves to meet the challenges of the globally-competitive, technology-intensive, knowledge-driven economy. The County’s location in the midst of the converging Chicago-Milwaukeeeconomic corridor promises to bring expanding and start-up companies in the emerging sectors ofprofessional services and advanced manufacturing. Racine County is also well positioned toattract a growing residential base to its communities on both the east and west sides of Interstate94. At the same time, Racine County is not fully ready to take advantage of these opportunities. Weare losing almost as many people as we are gaining as out-migrants leave the county’s urbancommunities to retire to other parts of the country. They are only partially being replaced by youngcouples from Milwaukee, Kenosha, and other nearby communities seeking lower taxes, qualityschools, and more affordable housing in areas of the county that may not yet have adequateinfrastructure in place to fully support development. At the same time, our current employers tell us that many of our existing workers are notprepared for knowledge-intensive jobs. Our measures of public education tell us that a largenumber of our children are receiving an education that does not adequately prepare them for futureacademic and employment careers. In fact, Racine’s inner city (Census Tracts 1-5) stands out because these are the neighborhoodswhere the county’s poverty and unemployment are concentrated. Not only does inner city povertyimpede the economic prospects for many individual residents, it also significantly drains local publicresources in the form of expenditures to provide the social, education, and security services thatthis population needs. More importantly, however, these neighborhoods could potentially providemuch needed workers for the County’s existing and emerging companies. Racine’s inner city isalso notable because a very large share of the young adults in school live there. Their educationalsuccess will influence the quality of education available to all students in the Racine Unified SchoolDistrict as well as the quality of the workforce that will be available for Racine County’s employers ofthe future. The county’s employers have already indicated that they need more skilled workers than arecurrently available. At the same time, too many potential workers are being lost to long-termunemployment because they are trapped in a cycle of poverty that will impede them in preparing forthe workplace of the future. 45 Economic Development Plan 5.0
Racine County Economic Development Corporation Economic Development Plan 5.0Solutions will involve developing higher expectations from our efforts to provide a qualitypublic education and address fundamental social ills that affect potential workers. Solutions willalso involve improving the linkage between available/anticipated jobs and jobseekers, including thegeographic concentration of job creation activities, information about job skills, and thetransportation resources to get workers to jobs. Finally, solutions will also require improving theCounty’s image among its workforce and its business community to ensure that they remain and re-invest in the County’s future.Following are six core challenges that Racine County leaders have articulated to ensure thatthe County prepares a world-class competitive workforce that will fill available jobs and reduceunemployment and poverty. Challenge 1Challenge 6 Raising standards andCommunicating a more expectations for public positive community education image Convener Convener Racine County Workforce Racine County Development Board Executive Challenge 2Challenge 5 Improving job seeker Supporting stronger, information about more financially stable familiesopportunities in new and Convener expanding businesses United Way Convener of Racine CountyRacine County Workforce Challenge 3 Development CenterChallenge 4 Creating jobs inEnhancing workforce communities transportation with concentrations of alternatives unemployed workers Convener Convener Racine County Racine County Economic Development Corporation ExecutiveThe six Strategic Challenges, while separate for the purposes of Convener responsibility, supportone another and should be taken as a whole. The color-coding helps identify challenges that dealwith separate aspects of larger issues. Challenges 1, 2 and 5.1 (Orange) are targeted at assuring that our students and families will beready for life and sustainable jobs both now and in the future. Challenge 1 is directed at46 Economic Development Plan 5.0 5
Racine County Economic Development Corporation Economic Development Plan 5.0setting higher educational standards and improving delivery systems to achieve thosestandards through the formal educational system. Challenge 2 addresses the need to improvecommunity services and faith-based support systems to families in poverty to develop thevalues of education and sustained employment. Challenge 5.1 deals with remedial educationand training to get the currently unemployed the knowledge, skills and abilities to move into theworkforce now. Challenges 3 and 4 (Blue) address the issues of bringing jobs to where the unemployed live andtransporting the underemployed to where jobs are being created. Challenges 5.2 and 6 (Green) support the importance of a positive community self-image as arequisite and means of projecting an attractive image to prospective newcomers.Strategic Plan Elements1. Raising standards and expectations for public educationRationale:Post-high school education is increasingly necessary for the success of individuals, families, employers,communities, and economies. It is critically important that we build strong support systems around Pre/K-16with leadership from businesses, community and faith-based organizations, public entities, and keystakeholders to ensure that Racine County’s students are well-prepared to be positive civic participants andfully-engaged in the economic success of themselves, their families, and their community. 47 Economic Development Plan 5.0
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