Southern Illinois: Garden of the Gods Readiness Assessment Chapter 6: Regional Perspectives

1. Southern Illinois: Garden of the GodsReadiness AssessmentChapter 6: Regional Perspectives January 27, 2008; revised February 17 CONNECT SI ViTAL Economy Alliance Frank Knott, Project Lead; Stan Halle, Senior Editor; JimHaguewood, Rob Beynon, & Neil Gamroth, Principal Economic Researchers fknottmd@earthlink.net; http://www.vitaleconomy.com

2. Table of Contents EXECUTIVE OVERVIEW:the Big Picture & Importance of Change in SI READINESS ASSESSMENT (RA) 1. State, National & Global Trends 2. Indigenous Resources & Industry Asset Mapping 3. Enabling Environment Necessities 4. Climate of Innovation, Incubation & Entrepreneurship 5. Southern Illinois Competitiveness 6. Regional Perspectives 7. Roadmap to Success APPENDICES 6.01 Demographic Picture 6.02 Economic Picture Across SI 6.03 Economic Picture by Sub-Region (COI) 6.04 Livable Community: Assessment 6.05 Infrastructure: Assessment 6.06 Healthcare: Assessment 6.07 Implications & Recommendations

3. Southern Illinois — "Garden of the Gods" This Chapter of the RA provides a regional and sub-regional perspective and analysis in preparation for an overall SI economic strategy. Each sub-region (aka geographic COI) contains unique assets that can be leveraged to support the achievement of the overall Connect SI community and economic development goals. Chapter 6:Regional Perspective 6.01 Demographic Picture ……………………………………………….. 4 6.02 Economic Picture Across SI ………………………………………. 10 6.03 Economic Picture by Sub-Region (COI) …………………………. 26 6.04 Livable Community: Assessment …………………………………. 64 6.05 Infrastructure: Assessment ………………………………………… 84 6.06 Healthcare: Assessment …………………………………………… 89 6.07 Implications & Recommendations ……………………………….. 116

4. Southern Illinois — "Garden of the Gods" This Section provides a condensed overview of the demographic trends across SI, focusing on youth brain drain and educational attainment. Chapter 6:Regional Perspective 6.01 Demographic Picture

5. SI: Sizeable Population . . . Over 419,992 residents in SI region, comparable to a major metropolitan area (as of 2006) Greater Egypt corridors of Highway SR13 & I-55 and the home of SIU contain most of the region’s population Three rural sub-regions are approximately equal in geographic area SI represents 3.3% of total IL population % of the Total Population by Sub-Region 61% 15% 12% 12% 6.01 Demographic Picture Critical mass exists in Southern Illinois! Source: Census Bureau data 2002, 2006

6. SI Youth and Young-Adult Brain-Drain-Gap 6.01 Demographic Picture Southern Illinois % Population Growth1990-2000 (census-to-census) • SI is losing tomorrow’s workers, 20-29 year olds • Over 18 population: 65.7% have high school education, 13.2% have Bachelors degrees • Recent trends show that high achievers are leaving the area • Recapturing departing youth is key to labor pool and economic growth +0.9% TOTALPOPULATION -7.2% 20-29YEAR OLDS Without the next generation of workers, Connect SI strategies will be much more difficult to achieve Source: BEA and U.S. Census update data

7. “We Loose the Best and Brightest: SI Adults Tell Our Children That There Will Be No 21st Century Opportunity in SI” Losing Your Future Workforce SIU and the community colleges generate an above average 20-30 year old population This young population leaves the region for more attractive opportunities, despite SI having the resources that should help retain them Increasing Your Burden SI is losing its most productive age group while increasing the resource-demanding demographic of retirees Age Distribution Comparison Increasing Your Burden Losing Your Future Workforce 6.01 Demographic Picture The youth are already here — they need to be proactively retained Source: U.S. Census Bureau – Table QT-P1: Age Groups and Sex: 2000 and RA Interviews

8. SI Educational Attainment Gap SI region lags Illinois in high school completion Bachelor and higher degrees of education, SI is less than half Illinois rate Trends run counter to modern need for increased levels of education and training 6.01 Demographic Picture Population with High School or Higher in SI Regions vs. IL Population with Bachelor Degree or Higher in SI Regions vs. IL 34% of adult workers in the U.S. have a bachelor degrees or more; almost three times the SI rate Source: U.S. Census Bureau (2000 Census)

9. Demographics Summary 6.01 Demographic Picture • SI is the size of a major metro area — but doesn’t yet behave like one • The entire region is suffering from significant youth brain drain • A declining youth demographic is a major challenge to developing successful economic development strategies • The population is aging in line with the entire U.S. • This will have a larger impact on the region if SI cannot recapture the youth leaving and influencing this shift • SIU and the community college infrastructure provides a key driver to shift the aging demographic trend in SI • The overall educational attainment level will need to be increased for SI to compete in a global economy — 9 —

10. Southern Illinois — "Garden of the Gods" This Section provides a condensed overview of the economic development assets, conditions and trends for all of SI. Chapter 6:Regional Perspective 6.02 Economic Picture Across SI

11. SI Regional Introduction SI population and economy are similar to that of a major metropolitan area Even with this size Southern Illinois suffers from lack of political clout state-wide due to the “Chicago-land” influence The cities bordering SI in neighboring states are attractive and draw money and resources out of the region A significant proportion of medical patient dollars from the region travel to surrounding states Attractive job opportunities have been created in the neighboring cities that result in out-migration of disposable income expenditures Many top management personnel live in these communities and work in SI From 2001-2003 the SI region lost over 2,300 manufacturing jobs or 20% of that sectors employment Greater Egypt dominates the SI region with respect to population and GDP, but not in average wage levels Government transfer payments comprise 64% of the regions personal income The region possesses a strong and experienced social services infrastructure SI’s land base is dominated by agriculture designation, but has been experiencing declining economic benefit (through 2005) 6.02 Economic Picture Across SI

12. Economic Profile: Southern Illinois Overview: Employment: 207,297 Labor Participation rate 66.5% GDP: $17.6 billion Top three GDP producers Government – 20% F.I.R.E. – 18% Natural Resources – 13% 6.02 Economic Picture Across SI SI # of Jobs by Region Employment by Sector Source: BEA data; VE Economic Scenario Model F.I.R.E = Finance, Insurance & Real Estate

13. Population by Sub-Region GDP by Sub-Region 64% 61% 15% 12% 12% 14% 11% 11% Source: Census Bureau Greater Egypt Dominates SI Economy 6.02 Economic Picture Across SI Source: Connect SI Economic Scenario Model • Greater Egypt's economic progress should be linked to the other sub-regions • Achieving a sustainable and growing SI economy, requires that • all sub-region assets should be integrated and leveraged • It takes critical mass to be globally competitive • Collaboration is how SI gets there!

14. Cumulative Population Trend (1980 – 2005) 30.5% 11.6% (-3.0%) Population and Wages: SI versus Illinois & U.S. 6.02 Economic Picture Across SI • Population in Southern Illinois has seen a decline in the past 25 years — a dramatic difference vs. Illinois and U.S. trends • Total wage growth in SI has been slow, far outpaced by that of both U.S. and Illinois Growth in Wages Over 25 Years (1980 – 2005) 73% Higher Than SI 63% Higher Than SI Source: Bureau of Economic Analysis

15. Average Wages Lagging 2005 Average Wage by Sub-Region versus IL 6.02 Economic Picture Across SI • SI region average wages are almost 30% lower than the state average • While IL wages are above the U.S. on average, SI wages remain below • Lower wages mean lower consumer spending power with additional impacts on healthcare, education and social services Greater Egypt’s economy is four times the size of the other sub-regions, has the largest base of innovation assets, and two of its counties are rated as Creative-Class Counties,yet its wages are no higher than rest of SI Source: BEA, Regional Economic Accounts

16. SI Per-Capita Wages are Lowand Per-Capita Transfer Receipts are High 6.02 Economic Picture Across SI Southern Illinois SI currently underperforms Illinois — Connect SI’s initiative would push transfer receipts down and push per capita wages up Source: Bureau of Economic Analysis Regional Bare Facts ; 2006

17. Where SI Personal Income Comes From 6.02 Economic Picture Across SI SI earnings by workplace are 25% lower than Illinois, 23% lower than US SI needs to grow the job base by at least 20% = 40,000+ new jobs Source: Bureau of Economic Analysis Regional Bare Facts 2006; Connect SI Economic Model

18. 2006 Government Transfer Payments as % of Total Earnings SI U.S. IL SI Dependency on Government Transfer Payments Exceeds State & National Benchmarks 6.02 Economic Picture Across SI • SI region’s income is comprised of 23.1% government transfer payments, compared with just 12.6% for IL and 14.2% for U.S. • Highest dependency on government transfer payments in Southern Five and Southeastern — percent of income through such payments exceeds 25% • Dependence on government payments restrains regional economic development and hinders entrepreneurial spirit Transfer payments: income payments to persons for which no current services are performed — payments by government and business to individuals and nonprofit institutions serving individuals Source: Bureau of Economic Analysis Regional Bare Facts 2006

19. 67% 64% 54% 46% 36% 33% Only 46% of SI Personal Income is Generated by Private Sector Employment 6.02 Economic Picture Across SI Private Sector Payroll & Benefits by Sub-Region GW - 48% GE - 53% SE - 42% S5 - 38% Increasing private sector percentage of personal income generation is crucial to building a climate of innovation Source: BEA & ViTAL Economy Analysis

20. Income Sources: Impact on the Region SI needs a 30% increase in private vs. public sector earnings to equal the U.S. ratio between public and private earnings Majority of income received from the public sector reduces the climate of entrepreneurship in the region and creates a risk-averse environment Smaller amount of per-capital income generated through productive purposes versus a much larger amount received from public sources and other transfer payments results in a weak view of business and economic opportunity Income disparity creates negative opportunity image for youth in the region for productive work Income disparity fuels the youth brain drain in the region by suppressing any youthful sense of hope and opportunity With only 46% of income received from private sector earnings, SI’s ability to afford the community and economy it wants is greatly limited 6.02 Economic Picture Across SI

21. SI Land Utilization is Less Than 3% Urban & Built 6.02 Economic Picture Across SI Sq. Mi. 5,229 1,581 671 216 239 369 8,306 Sq. Mi. Land Mass Utilization • SI developed land mass is only 57% the size of Shawnee National Forest • Shawnee National Forest is 5% of SI land base Source: Illinois State Dept of Natural Resources

22. The Value of SI Land is Shifting 6.02 Economic Picture Across SI • *2007 Agriculture statistics will reflect higher market value per acre due to increased commodity prices, especially for hybrid ethanol corn • Since 2000: • Number of farms and acres being farmed has stayed relatively stable • Value of farmland and buildings has increased by 27% • Cropland rent per acre has increased by 20% • Up to 60% lower yield in crop value per acre compared to Central Illinois or Northern Illinois • Soil and moisture characteristics account for much of the lower yield Source: NASS 2002 Census of Agriculture

23. 8.5% 7.7% 4.3% SI KBE: Professional, Scientific, Technical and Information (PST&I) Work Force Gap 6.02 Economic Picture Across SI SI has 50% fewer PST&I workers than IL and U.S. at a time when they are the fastest growing job sectors of the U.S. economy • PST workers include those in establishments specializing in professional, scientific and technical activities — engineering, computers, architecture, law, and accounting • Information industry “I” workers work with telecom and information networks • KBE success largely related to PST sector of the economy (90% of new jobs) • PST workers as percent of economy indicates ability to benefit from this growth area Sources: BLS, IDES, BEA

24. Current State: Southern Illinois 6.02 Economic Picture Across SI • Traditional Business Strengths • Agriculture: corn and soybeans • Energy: coal and oil • Southern illinois university • Manufacturing • Marine transportation and logistics • Rising Business Stars • Transportation and logistics • Tourism, including ecotourism and vineyards • Clean coal technologies • Health services • Advanced manufacturing • Arts and artisans • Young entrepreneurs • People, Land & Jobs • % of IL Land Mass = 15.0% • % of IL Population = 3.3% • % of IL Employment = 2.8% • Dependencies • Public sector employment • Transfer payments • Social security • Pensions • Farm subsidies • Notable • Home to 2nd largest university in Illinois • Shawnee National Forest • Mississippi, Ohio, and Wabash Rivers • Interstate highway system and CN Rail • SICCM (Southern Illinois Collegiate Common Market) • Mid-America geographic location • Rich historical area and assets • Proximity to five major metro areas

25. Opportunities & Challenges: Southern Illinois 6.02 Economic Picture Across SI • Opportunities • Natural resources • Transportation & logistics • Homeland security • Recreational tourism • Geography, climate & location • Quality of life • Proximity to markets • Senior living • KBE and innovation • Challenges • Broadband coverage • Geographic isolation • Political climate • Business attractiveness • Curb appeal • Regional identity • Workforce availability • Focus on sunset industries • Self image and respect • Limit climate of collaboration • Key Trends • Youth population decline • Hwy 13 I-57 corridor growth • SIU declining enrollment • Medical professional recruitment difficulties • Coal economy rebirth • Upscale tourism unaddressed • Expanded internet infrastructure • One Region – One Vision • Aging population • Growth Enablers • Emerging KBE businesses • Business incubation structures • Business startup capital, angel investor networks • Regional branding • Value-added manufacturing strategies • Connectivity & collaboration • Entrepreneur networks • Business and industry clustering • Technology transfer • e-Commerce development

26. Chapter 6:Regional Perspective 6.03 Economic Picture by Sub-Region (COI) Southern Illinois — "Garden of the Gods" This Section provides economic factors that were identified by each of the four geographic COIs, plus notable trends, and 2012 goals.

27. The 20 Southern Counties of Illinoisbounded by the Mississippi, Ohio and Wabash Rivers 6.02 Economic Picture by Region Connect-SI Region 130 Miles East-West Connect SI includes 4 sub-regions: Southern Five Union, Johnson, Alexander, Pulaski, Massac Southeastern Pope, Hardin, Saline, Hamilton, Gallatin Greater Wabash White, Wayne, Edwards, Wabash Greater Egypt Randolph, Perry, Jackson, Jefferson, Franklin, Williamson GW GE 100 Miles North to South SE S5 Population = 423,670 Workforce = 207,297 Source: U.S. Census Bureau 2006; VE Economic Scenario Model

28. Economic Profile: Southern Five COI S5 6.03 Economic Picture by Sub-Region SI Number of Jobs by Region Employment by Sector Overview: • Labor Participation Rate – 62.8% • GDP: $2.1 billion • Top three GDP generators • Government – 26% • F.I.R.E. – 17% • Natural Resources – 12% Source: BEA Data and RIMS II multipliers

29. Southern Five Population TrendsPrison Population Removed (None in S5 Open in 1980) S5 6.03 Economic Picture by Sub-Region Comparison during same period: USA +13.1%: Illinois +11.2%; Illinois (without Prison Population) +10.9% Alexander County has experienced the greatest population decline of any SI county, over 25% since 1980 Source: COI Milestone and U.S. Census Data

30. Aging Population (2004) MoreRetirees Fewer Children S5 IL Region Losing Best Resource: Young Adults(No Prison Population included) S5 6.03 Economic Picture by Sub-Region Young Adults as %of Population (2004) Source: U.S. Census, Prison Population Removed

31. Intermodal Transportation Opportunity Strategic Position of Cairo, Alexander County: Junction of the Mississippi and Ohio Rivers Interstate 57 Proximity to Interstate 55 and 24 Major rail carriers Trends: Large part of U.S. trade deficit is comprised as empty containers returning to Asia Development of CN Rail traffic in the Midwest Increasing container-on-barge traffic on the Mississippi Production of export products in or in proximity to SI including cotton, soy, corn, pulp, silica Active regional transportation providers engaged in river and barge traffic and trucking Opportunity: connect regional products with export markets via transportation infrastructure and services S5 6.03 Economic Picture by Sub-Region Projected annual economic impact of this Intermodal opportunity is estimated at ~$100 million in GDP (est. 1,182 direct, indirect & induced jobs) Source: ViTAL Economy Economic Scenario Model & Inter VISTAS Intermodal Study for City of Cairo, SIDEZ & USDA

32. S5 Traditional Business Strengths • Government • Mississippi barges • Forestry • Transportation • Recreation and tourism • S5 Rising Business Stars • Transportation and logistics • Tourism, including ecotourism and vineyards • Energy, including ethanol, bio-diesel • Advanced manufacturing • Artisans and arts • Proposed coal gasification plant • Harrah’s Casino — Metropolis • Wineries • Golf course & residential development • Mermet Springs Diving Center • LaFarge Concrete Plant • S5 People, Land & Jobs • % of IL Land Mass = 3.3% • % of IL Population = 0.50% • % of IL Employment = 0.33% • S5 Dependencies • Government employment • Transfer payments • Government dependence on casino revenues • S5 Notable • Mississippi and Ohio Rivers • CN Rail North-South line • Interstate 55 • Tourism, heritage sites & events, e.g.: • Ft. Massac Civil War Encampment • Superman Festival • Indian settlements • Unique climate & long growing season • Shawnee College • Mermet Springs • Wine, golf, B&B trails • Extensive social service expertise Economic Profile: Southern FiveCOI S5 6.03 Economic Picture by Sub-Region

33. Southern Five COI: Goals S5 6.03 Economic Picture by Sub-Region Determination of specific measurable, wage & employment goals from change in regional wages vs. 2012 trend NEW JOBS: 784 WAGE: $43,500 $34.1m NEW JOBS AT AVERAGE WAGE: 522 WAGE: $36,517 $19.6m IMPROVEMENT OF EXISTING JOBS: 4,863 WAGE: $5,000 $24.3m CLIMATE OF ECONOMIC OPPORTUNITY: $12.2m

34. Southern Five COI: Opportunities KBE Process materials and piping, CO2 in process piping Mental health expertise, exportable mental health product Wetland recovery, flood plains Music production, college instruction and local artists Local history experts Artisans and products Goal: Start 35 businesses with 10 employees each by 2012 Logistics/Transportation Identify best practices and trends in trucking and transportation Identify additional training funds for programs Closure of Cairo Airport, best practices of airports in rural areas, location, operations, security issues, trends in air transport Energy Learn from other communities that have gone through a large project development process Improve communication between communities within 20 county area Research switch grass cellulose potential Nuclear power Tourism B&B’s golf and wineries; build off of successful activities Dining and restaurant needs in support of tourism Aggregate demand with wineries and B&B’s Define the specific regional tourism goals, quantifiable and measurable Linking the different trails together S5 6.03 Economic Picture by Sub-Region

35. S5 Challenges • Lack of skilled workforce for current and future jobs • Lack of cooperation, collaboration, and regionalism • S5 lacks the assets to grow and retain tech-based jobs • No sense of urgency • K-12 system needs support • Limited healthcare availability to Alexander, Johnson and Pulaski Counties • Electrical rates • “There are so many problems, where do you start” • S5 Opportunities • Geography location; transportation & logistics • 50% of U.S. market within 10 hours of S5 • Community College System and SIU • Increase healthcare availability • Tourism, bed & breakfast, wineries • Shawnee National Forest and state parks • Agribusiness opportunities • (e.g. ethanol and bio-diesel) • Unique natural locations • Significant historic site • Senior services • S5 Key Trends • Strong core of community leadership • Growth of bed and breakfast facilities • Expansion and growth of lodging facilities in Metropolis • Investment in residential developments • Region is receiving major investments attention • Most high level executives do not live in the area • Limited availability of workforce • S5 Climate for Growth • Travel and tourism; history, experience • Outdoor recreation activities and events • Mississippi and Ohio river transportation • Golf and wine trails • Transportation and logistics • Alternative energy Southern Five: Highlights S5 6.03 Economic Picture by Sub-Region Source: Connect SI COI, RA Interviews and VE

36. Economic Profile: Southeastern COI SE Number of Jobs by Region SE 6.03 Economic Picture by Sub-Region Employment by Sector Overview: • Labor Participation Rate – 69% • GDP: $2.0 billion • Top three GDP generators • Natural Resources – 22% • Government – 18% • F.I.R.E. – 17% Source: BEA Data and RIMS II Multipliers

37. Southeastern: Population Trends SE 6.03 Economic Picture by Sub-Region Comparison during same period: USA +13.1%, Illinois +11.2%; (without Prison population 10.7%) In the past 25 years, all five SE counties have lost significant population Source: COI Milestone

38. Shawnee National Forest Visit Profile and ProjectionsRoom for Increased Daily Spend Rates SE 6.03 Economic Picture by Sub-Region Current Impacts: Shawnee National Forest Annual Visitation 500,000 Source: NPS Spending and Payroll Impacts, 2005, Spending Profiles for National Forest Visitors, May 2005 Note: Total potential spend for Shawnee is based on totaling national spend category columns, not total visitors x average national spend

39. Increased Spend Rates to National Averages Would Create 235 Jobs • Increased spending leads to tourism jobs • Achieving national averages of daily spend rate estimated to create 235 new jobs in Southern Illinois • This is based on forest-related spending alone • Increased non-forest spending would create more jobs • Infrastructure and camp improvements are needed to achieve this result 160 New Jobs 25 New Jobs 25 New Jobs 30 New Jobs TOTALS Local Day Trips Non-local Day Trips Camp Motel Note: Analysis based on BEA RIMs II model analysis Shawnee National Forest: Opportunity SE 6.03 Economic Picture by Sub-Region

40. SE Traditional Business Strengths • Coal mining • Agriculture • Hunting • Aggregate rock • Historical sites and museums • Barge and river industry • SE Rising Business Stars • Tourism, including ecotourism • Recreational manufacturing • Mining-related spin-offs • Coal mining • Guiding and Outfitting • Disaster recovery knowledge • SE People, Land & Jobs • % of IL Land Mass = 3.07% • % of IL Population = 0.40% • % of IL Employment = 0.30% • SE Dependencies • Government jobs • Transfer payments • SE Notable • Ohio Scenic Byway • Coal reserves • Shawnee National Forest, Garden of the Gods • Southeastern Illinois College • Tourism & heritage sites & events, eg: Slave House, Trail of Tears, Milestone Bluffs • Festivals: Fresh Water Shrimp Festival, etc. • Undeveloped tourism sites • Dixon Springs Ag Center • Unique climate & long growing season Economic Profile: Southeastern COI SE 6.03 Economic Picture by Sub-Region

41. Southeastern COI: Goals SE 6.03 Economic Picture by Sub-Region Determination of specific measurable, wage & employment goals from change in regional wages vs. 2012 trend NEW JOBS: 3,746 WAGE: $43,500 $163.0m NEW JOBS AT AVERAGE WAGE: 2,498 WAGE: $40,276 $100.6m IMPROVEMENT OF EXISTING JOBS: 4,381 WAGE: $5,000 $21.9m CLIMATE OF ECONOMIC OPPORTUNITY: $56.0m

42. Southeastern COI: Opportunities (1 of 2) SE 6.03 Economic Picture by Sub-Region Source: COI Milestone

43. Southeastern COI: Opportunities (2 of 2) SE 6.03 Economic Picture by Sub-Region Source: COI Milestone

44. Southeastern Tourism Goals Recognizing the extensive indigenous resources in Southeastern and under-tapped tourism industry potential, the COI set several goals: Increase expenditures by $10m/yr Increase lodging taxes by $85k/yr Increase daily spending by 19% ($60 to $76) Increase occupied room-nights in the region by 8,000 per year Focus on three areas (take 19 areas through the filter): Fee-hunting Historical tours Eco-tourism SE 6.03 Economic Picture by Sub-Region Source: Southeastern COI

45. SE Opportunities • Bring resources to SE through relationships and alliances • Natural and small town environments are positive places to live, work and play • Leverage the Dixon Springs Center, unique climate • Grow reputation for entrepreneurship • Grow tourism industry by leveraging unique location, heritage sites and natural features • Unique small river towns • Leverage coal mining knowledge base in new ways; disaster recovery, safety systems, training • SE Challenges • Overall limited resources in the area • Declining tax revenue base • Change age demographic • Limited broadband penetration • Lack of lodging facilities (187 rooms) • Limited affordable housing • Industrial water availability in Hamilton County for mine expansion • Entrepreneurship support structures • Quality housing stock • SE Key Trends • Growth and prominence of Southeastern College • Rebirth of coal industry • Transportation of coal from Shawneetown terminal • Regional recognition including videos highlighting the unique natural features • Growth of the Ohio Scenic Byway • Weak workforce availability • SE Climate for Growth • Agriculture research and development • Comfortable mild Midwest climate: senior living • Tourism; unique natural environment & locations • Vast amount of coal resources • Variety of coal industry knowledge • Processing of coal closer to raw material • Mine to mouth energy production • Growing need for coal workers & disaster training • Entrepreneurship and innovations • KBE workers in unique small towns Southeastern Highlights SE 6.03 Economic Picture by Sub-Region Source: Connect SI COI, RA Interviews and VE

46. Economic Profile: Greater Wabash COI GW Number of Jobs by Region Overview: • Labor Participation Rate – 71% • GDP: $2.5 billion • Top three GDP generators • Natural Resources – 25% • F.I.R.E. – 19% • Government – 13% • Lowest % in SI region GW 6.03 Economic Picture by Sub-Region Employment by Sector Source: BEA Data and RIMS II multipliers — 46 —

47. Greater Wabash: Population Trends GW 6.03 Economic Picture by Sub-Region Comparison during same period: USA +31.1%, Illinois +11.2% GW has the greatest population loss in SI from 1980 to 2004 — more recent estimates show trend continuing Source: Bureau of Economic Analysis and Census Bureau

48. Older Age Distribution Puts SI at Economic Disadvantage versus Illinois GW 6.03 Economic Picture by Sub-Region Age Distribution Comparison • Dramatic loss of 20-34 yr olds in GW region • GW has a greater percent of people over 55 than the rest of Illinois • Median age higher in GW (40) than Illinois (34.7) To grow economically, the region needs to retain younger workers and grow job opportunities Source: U.S. Census Bureau – Table QT-P1: Age Groups and Sex: 2000

49. Youth Brain Drain (Future Workforce) * 16.3% drop in 10 years * $19.1m in lost wages Out-migration of Healthcare Revenues * $32.9m of $55.5m Out-of-Region Jobs & Disposable Income Spending * $14.7m-$23.6m per year * Worth 200-315 Jobs Economic Value Lost to GW: $56.7m-$75.6m EVERY YEAR! Out-Migration is Eroding GW’s Future GW 6.03 Economic Picture by Sub-Region — 49 —

50. GW Traditional Business Strengths • Agriculture • Mining • Manufacturing, eg: Airtex, Champion Labs • Oil extraction • Education system • GW Rising Business Stars • Tourism, especially hunting • Energy • Oil industry supplies and equipment • Outfitting/Hunting, eg: • Campbell’s Outfitters • Entrepreneur businesses: Elastec, Dinger Bats • GW People, Land & Jobs • % of IL Land Mass = 3.0% • % of IL Population = 0.41% • % of IL Employment = 0.35% • GW Dependencies • Transfer payments • High coal industry retirees • Pension income • Manufacturing employment • GW Notable • Wabash River • Business connections with Indiana • Interstate (I-64); proximity to Evansville, IN • Nearby Toyota plant (Princeton IN) • Postcard small towns • College System: Illinois Eastern Community Colleges, Frontier, Wabash Valley • Oil reserves • Online education initiatives • Major regional business owners live in the area • Major source of water in the area • Lower unemployment rate then the rest of SI Economic Profile: Greater Wabash COI GW 6.03 Economic Picture by Sub-Region Source: Connect SI COI, RA Interviews and VE — 50 —