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Cindi Kerschbaumer, OMEGA District Bret Allphin, Buckeye Hills District Mike Lloyd, OSU Extension Noble County Cindy Bond, OSU Extension Guernsey County Nancy Bowen Ellzey, OSU Extension . Building Sustainable Communities in Ohio’s Shale Region:.
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CindiKerschbaumer, OMEGA District Bret Allphin, Buckeye Hills District Mike Lloyd, OSU Extension Noble County Cindy Bond, OSU Extension Guernsey County Nancy Bowen Ellzey, OSU Extension
Building Sustainable Communities in Ohio’s Shale Region: Leveraging Manufacturing Clusters and Local Assets with Strategic Planning
Program Objectives Situation Overview EDA Project Overview • Project Partners • Scope of Work • Timeline IMPLAN Economic Impact Analysis
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Diversification is Essential Focus on diversifying economy. Make investments that make community more attractive to locate new businesses. Encourage small businesses, entrepreneurs, and innovation. Build Human Capital - High levels of human capital have been strongly associated with high regional economic growth rates (Simon, 1998).
Scope of Work Advanced Industry Cluster Analysis Industry Capacity Assessment Asset Mapping Sustainable Strategic Planning to Elevate and Expand CEDS Develop Implementation Strategies
EDA Proposal Project Partners U.S. Department of Commerce - Economic Development Administration Ohio State University Extension Core Project Team OSU Extension Shale Working Group Regional Economic Development Organizations: • Eastgate Regional Council of Governments • Northeast Ohio Four County Regional Planning and Development Organization • Ohio Mid-Eastern Governments Association • Buckeye Hills-Hocking Valley Regional Development District
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1) Advanced Industry Cluster Analysis • The primary objective of the cluster analysis is to better understand to what degree the regional economy changes as a result of shale development, specifically level and type of employment, in addition to sectorial changes within the economy. We will measure changes using employer enterprise data that is accessed through the Center for Human Resource Research (CHRR) Workforce Data Quality Initiative (WDQI) restricted access database and public data sets including the census and IMPLAN.
2) Industry Capacity Assessment The overall goal of the industry capacity assessment is to acquire specific data from businesses in the twenty-five county region illustrating the strengths, assets, and supply chain supporting manufacturing advancements related to the shale industry and to determine how reliant the businesses are on continued shale production in eastern Ohio.
3) Asset Mapping Regional assets that may be included in the mapping initiative include: Economic Data from the Advanced Cluster Analysis Results from Industry Capacity Assessment Population Demographics Education / R&D Institutions Financial Capital Physical Shale Infrastructure Shale Energy Development Activity
4) Sustainable Strategic Planning to Elevate and Expand CEDS Shale Development 101: Preparing your community for shale development Creating a Community Inventory Economic Impacts of Shale Development Social Impacts of Shale Development Environmental Impacts of Shale Development Bringing it all together – Sustainable Community Goals
5) Develop Implementation Strategies A key strength in this proposal is the seamless integration of economic research, analysis, and sustainable strategic planning into the regional economic development districts CEDS.
Economic Impact Analysis Initial Findings
What Will we Measure with IMPLAN? IMPLAN is an input/output economic modelthat can measure economic change (economic and demographic) based on industry (shale) contribution over time We will measure economic indicators such as value added, total output and cluster concentration We will also measure demographic indicators including population and household income
IMPLAN and Average Household Income • Average household income in IMPLAN measures for: • Government retirement benefits • Transfer payments including social security • Employer paid benefits (cash or non-cash) • Investment income including royalties • Rental income • Non-cash payments such as subsidized or public housing • Vs. census household income which measures for: • Income received directly by individuals and reported on long form.
OMEGA District Employment Trends (2008-2012) Source: IMPLAN
OMEGA District Population Trends (2008-2012) Source: IMPLAN
OMEGA District Household Income Trends (2008-2012) Source: IMPLAN
OMEGA Top Ten Sectors by Employment and Employment Change (2008-2012) Source: IMPLAN
OMEGA 2012 Industry Clusters Source: Statsamerica.org
Summary OMEGA District is on an upward trajectory in terms of population, employment and household income growth. The population growth rate, 6,650 people between 2010-2012, is especially significant. OMEGA is comprises almost 85% of producing wells, with over half of those in Carroll County alone. With a heavy concentration of producing wells in the OMEGA District, it is leading the way to demonstrate indicators as a result of shale development. Source: IMPLAN
Buckeye Hills/Hocking Hills District
BH/HH District Employment Trends (2008-2012) Source: IMPLAN
BH/HH District Population Trends (2008-2012) Source: IMPLAN
BH/HH District Household Income Trends (2008-2012) Source: IMPLAN
BH/HH Top Ten Sectors by Employment and Employment Change (2008-2012) Source: IMPLAN
BH/HH 2012 Industry Clusters Source: Statsamerica.org
Summary Changes are just beginning to emerge in the BH/HH District, but not all in the positive direction. Household income dropped along with employment between 2010-2012, an indicator that may be temporary requiring further investigation. A new sector to the top ten, transport by truck, and significantly increased population figures – up almost 6,000 between 2010-2012 help to tell the story of change. Number of producing wells currently at 41 vs. 324 in OMEGA, but with 153 permits issued (76 in Noble and 64 in Monroe counties), the region’s shale industry is taking flight.
What’s Next? Continue to analyze datato measure economic changes that occur using IMPLAN and CHRR data sets, in addition to new data being released Round out list of indicators to include socio-economic changes • Housing, environmental, education, public services, crime, etc. Combine IMPLAN results with socio-economic changes and survey research to “tell the story” Review results annually and at five year intervals