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Wine Cluster Study and Implications for Planning. EMSI Conference September 11, 2012. Steven VanAusdle, President Walla Walla Community College. Welcome to Walla Walla. Balancing Security, Prosperity, and the Environment. The Challenges of our Time. Safety and Security. Economic
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Wine Cluster Study and Implications for Planning EMSI Conference September 11, 2012 Steven VanAusdle, President Walla Walla Community College
Welcome to Walla Walla
Balancing Security,Prosperity, and the Environment The Challenges of our Time Safety and Security Economic Competitiveness Environmental Sustainability
Talent Investment Infrastructure Jobs, Wages, and Standard of Living A Strategy for Economic Competitiveness Productivity* Innovation and Entrepreneurship *Improving Productivity will require more innovative uses of existing resources.
Talent • STEM programs • High-demand programs • Establish high school skills center • Use instructional technology for • access and efficiency • Economic studies • Infrastructure • Information Technology • Energy Technology • Water Technology • Waste Management Technology • Transportation Technology Regional Strategy For Economic Development • Investment & • Entrepreneurship • Increase access to expertise and capital • Strengthen capabilities of • manufacturing • Provide small business incentives • Ensure regulations are not barriers • Promote entrepreneurship
WWCC Center for Enology & Viticulture 2006 Governor’s Workforce and Economic Development Best Practice Award
WWCC Enology Students Learning While Creating College Cellars Wine
Wine Country Culinary Institute With a Focus on Pairing Food and Wine
Port of Walla Walla Wine Incubators
The Cluster-Based Approach to Economic Development WWCC was awarded an $82,000 grant, plus a $25,000 match, to: • Define and describe the nature of the region’s functional economy; • Describe the nature of the wine industry cluster; • Develop a shared vision; • Determine the influence of the wine industry cluster; • Develop a strategic plan for the wine industry cluster; • Maintain a wine industry cluster web site.
Walla Walla Area Functional Economy COLUMBIA COUNTY WALLA WALLA COUNTY WASHINGTON OREGON UMATILLA COUNTY walla walla area functional economy Westernmost edge of Walla Walla County (includes Columbia County, most of Walla Walla County, and part of Umatilla County) Umatilla County, Oregon
Net Migration, Walla Walla County 2000 1500 1000 500 0 -500 -1000 -1500 2000-2005 1995-2000 Sources: U.S. Census 2000 (Residence 5 years ago), U.S. Census Annual County Population Estimates
The Economic Impact of Walla Walla Valley Wine
Proposed Initiatives • Marketing (6) • Education and Workforce (8) • Infrastructure (8) • Amenities (3) • Policy (8)
Creating the Walla Walla Innovation Partnership Zone (IPZ) Ecosystem Collaborators Initiatives K-12 Dept. of Ecology Skills Center University Center Water Quality Values Water Center Watershed Restoration Career Pathways WWCC Collaboration Mission Sustainability Confederated Tribes Workforce Development Water Efficiency County Vision Foster a Healthy Economy and a Healthy Environment Walla Walla Watershed Partnership Excellence Partnerships City Business Development Salmon Recovery Board Renewable Energy Integrity Port Learning Economic, Environmental, and Cultural Sustainability Infrastructure Wallowa Resources Energy Efficiency Chambers of Commerce Innovation Diversity Rural Center for Entrepreneurship Utilities Entrepreneurship Sustainable Living Center Wine & Hospitality Cluster Downtown Foundation Enology & Viticulture Center Tourism Walla Walla Art Alliance Wine Alliance
Industry Cluster: Groups of similar or related industries that are geographically concentrated and may achieve collective efficiencies and increasing returns to scale through transactions, shared labor pools, infrastructure, knowledge and technology spillovers, and other complementarities.
Questions How has this regional economy changed over the past five years? How has the wine cluster changed over the last five years? What are the effects of the economic downturn on the region and the wine cluster? How do indicators of economic progress compare in 2011 with the 2006 benchmarks? What are the priority initiatives for growing the regional economy and what central role can the IPZ continue to play? What are other potential clusters the IPZ can promote?
Walla Walla Valley Wine Cluster Study Washington State Legislature, Wine Commission, Wine Institute, and Walla Walla Valley Wine Alliance Grape Stock Winemaking Equipment Fertilizer, Pesticide, & Herbicide Vendors Growers/ Vineyards Wineries/ Processing Facilities Barrel Accessories Grape Harvesting Equipment Vendors Bottle Etching Irrigation Technology Manufacturers Caps and Corks Suppliers Compostea Public Relations & Advertising INFRASTRUCTURE Educational, Research, and Trade Organizations (e.g., WWCC Enology & Viticulture Center & Culinary Arts Program, WSU) Worm Farming Art Cluster Washington Agricultural Cluster Culinary Cluster Based on Michael Porter’s format for describing industry-based clusters Tourism Cluster
Projected IPZ EmploymentWith and Without the Wine Cluster With Without
The Walla Walla IPZ Wine Cluster Percentage Growth in Overall Employment 2006 to 2011
Wine Cluster Research Summary • Growth in the wine industry occurs in tandem with wine tourism. • The wine cluster’s share of the regional economy is increasing: a multiplier effect of 3 and location quotient of 50.7. • Wine cluster diversifies the region’s industrial mix and contributes to its resilience, dampening the effects of economic recession.
Cluster Research InformsPlanning Decisions • Align Workforce Education programs with regional economy • Adjust the scale and scope of existing programs • Create new programs • Identify industry needs • Identify and target potential high wage/high growth sectors • Identify public policy needs
NationalJournal How Wine Growing in Walla Walla Supports the Economy By Catherine Hollander June 1, 2012 “America’s economy today feels as sleepy as Walla Walla’s two decades ago. Middle-class workers were slammed by the financial crisis, their jobs disappearing, wages stagnating, and future uncertain. To put them back to work, the nation would do well to consider Walla Walla, which seems to have cracked the code on how to get mid-skill workers back into the labor force while revitalizing an economy. If the country needs a model, this could be it.”
WALLA WALLA Union~Bulletin Wednesday, May 30, 2012 College Cellars wines win regional acclaim Eight wines from the local teaching winery took home honors from recent judgings WALLA WALLA – Student-made wine brought home nearly a case full of hardware at the recent Seattle Wine Awards and Northwest Wine Summit. In the Seattle Wine Awards, College Cellars won three double gold medals for its 2011 Ice Wine, 2009 Syrah and 2008 Malbec. Silver medals were awarded for the 2011 Sauvignon Blanc and 2010 President’s Blend, along with a bronze medal for the 2010 Scholarship Red. The college’s 2011 Chardonnay won gold and its 2011 Semillon won bronze in the Northwest Wine Summit awards, which covers Alaska, Alberta, British Columbia, Idaho, Montana, Oregon, and Washington. The 7th Annual Seattle Wine Awards is Washington State’s largest and most comprehensive independent wine recognition program. On April 21 & 22, local and national wine professionals gathered to taste and evaluate 982 Washington wines in a single-blind format (meaning grape variety or style is known, but not price or producer) and awarded the top wines by consensus with Double Gold, Gold, Silver and Bronze Grand Awards of Excellence.
Water & Environmental Center 2010 Governor’s Workforce and Economic Development Best Practice Award
90 construction jobs 27 additional jobs created associated with Center Expansion At least 250 direct and indirect jobs created, according to Earth Economics 129 graduates in 9 years with $414,336 increased lifetime earnings for each graduate Water & Environmental Center Jobs Created and Enhanced
Economic Impact of Establishing 1,000 Acres Of Vineyard Production in the Walla Walla Valley