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Creating an Impact Rethinking your Modus Operandi (mode of operation)

Creating an Impact Rethinking your Modus Operandi (mode of operation). Jeremy Hill, Director CEDBR.org. -Sylvania, GA - The Azalea & Dogwood City Pop 2,956 -Plains, KS – Widest Main Street in the USA Pop 1,146. Overview. How do you determine value in a declining economy?

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Creating an Impact Rethinking your Modus Operandi (mode of operation)

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  1. Creating an Impact Rethinking your Modus Operandi (mode of operation) Jeremy Hill, Director CEDBR.org -Sylvania, GA - The Azalea & Dogwood City Pop 2,956 -Plains, KS – Widest Main Street in the USA Pop 1,146

  2. Overview • How do you determine value in a declining economy? • Is it an endless spiraling tunnel? • Creation of wealth • Where does that cash come from? • Shifting landscape • by the numbers • Comparative advantage • Not just targeting -> resourcing

  3. How do you determine value in a declining economy?Is it an endless spiraling tunnel?

  4. Do large cities support small cities? • Demand • Clusters • Knowledge base • Efficiencies • Innovation • Larger private firms • Spill over to small cities

  5. Do small cities support large cities? • Resources • Natural • Labor • Cheaper • Land • Capital • Labor • Innovation • Efficient • Support large cities

  6. Mobility of CapitalFirms (cash & Labor) move in and out • Firms ARE mobile • Economies are complex – intricate/intertangled structures

  7. Creation of wealthWhere does that cash come from?

  8. Growth/Wealth Creation $1 • Core -> Demand • Demand from areas outside your local economy. • Maximize Growth/value - Innovation & Resource exploitation • Multipliers • (minus) savings and leakages $.75 $.50 $.25 = $2.50

  9. KS Multipliers • Commodities • Value added agriculture • Resource fitting Selected Industry Multipliers by Region – www.CEDBR.org

  10. Shifting landscape by the numbers

  11. More Concentrated Earnings Relative Expansion Relative Contraction Less Concentrated

  12. Typical Strategy • Anything alive and willing

  13. Rethinking!! • What are your assets? • What are your costs? • CEDBR has a fiscal model • What are your needs? • Planning • Concentrated/diversified workforce – reduce risk/risk adverse • Labor/output – is there excess labor supply? • Natural resource (water, energy, farm…) • Capital resources • Human capital resources – (technical colleges and universities)

  14. Comparative Advantage • Relative advantage • Relative cost of production • Labor, capital, fuel, and productivity • Relative delivered price • Expected growth • Declining sector, Long term potential, up and comer-high risk • Are you thinking only about your county? • Labor and resources go far beyond geo political boarders

  15. Jeremy Hill, Directorwww.cedbr.org

  16. Handout Material

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