SCORE Luncheon Remarks

Greater Rochester Region

Leading the Way to Economic Success

Mark S. Peterson
Managing Director
Greater Rochester Enterprise

11:45 A.M., Friday, March 14, 2008
Oak Hill Country Club

Greater Rochester Enterprise’s Mission

Greater Rochester Enterprise (GRE) supports business attraction and expansion, as well as entrepreneurship and innovation.

GRE collaborates with businesses, universities, not-for-profit organizations and government leaders to ensure a unified approach to regional economic development.

Finger Lakes Region

• Population:            1,196,334
• Total Workforce:              611,800  
• Geographic Size:          9-county Finger Lakes Region 
• Genesee, Livingston, Monroe, Ontario, Orleans, Seneca, Wayne,             Wyoming and Yates

            The area offers a unique combination of big city opportunities

             coupled with a small town lifestyle

Home to Many Major Corporations

Reasons To Be Proud of Our Region

Innovation

• Our region has highest number of patents/ worker
• From mass photography to apple juice, many great inventions were created in our region

We Each Play Critical Roles

We must assume key roles to help energize the Rochester Region

Ambassadors promoting the Rochester Region

Matchmakers connecting businesses with resources to thrive in Rochester Region

Rainmakers leading initiatives to increase resources for new and established       businesses

GRE’s Strategic Direction

Four pillars to drive economic growth

• Attract new companies to our region
• Support new emerging companies in our region
• Retain and expand existing companies in our region
• Position Rochester Region as a “must see” destination built on community strengths

GRE’s Strategic Thrusts: Target business attraction efforts that leverage Rochester Region’s core assets

• Optics, Photonics and Imaging
• Biotech/Medical Devices
• Food and Beverage Manufacturing
• Alternative Energy and Green Technology

Maximize the use of assets – plant, property or human resources – to be an economic driver for Rochester

Measurements of Economic Success

• Recent Capital Investments – nearly $1.5 billion
• $500 million to upgrade RG&E’s Russell Station
• $350 million for renovations of public schools
• $250 million for expansion of URMC
• $60 million for creation of Golisano Institute of Sustainability at RIT
• $96 million for Barilla America’s pasta facility
• $50 million for University of Rochester’s Clinical and Translational Research Institute
• $144 million for Unity Health System’s renovation and expansion of Unity Hospital
• $50 million state investment coupled with PAETEC’s plans to spend $40 million to $100 million on new corporate headquarters
• $50 million investment for new ESL headquarters

Emerging Business: Foster Right Climate

• Create more startups in Rochester Region

• Increase success rate of startups through mentoring and access to capital

• Expedite university spin out process

• Promote Rochester Region as entrepreneurial hot spot

Emerging Business: Activities for Right Climate

• GRE facilitated the formation of Rochester Angel Network (RAN) to fill void in early stage funding
• 37 companies presented to Angels; 8 investments in 6 companies; 3 under consideration
• More than $2.6 million invested; supports 82 jobs
• GRE collaborates with economic development and other partners to organize events to support and stimulate more startups and increase success rate
• Golden Horseshoe Business Challenge awarded $100,000 to Wakonda Technologies, solar company
• Pre-Seed Workshop; Rochester Entrepreneurship Conference
• Eyes on the Future Economic Summit
• These events reach more than 1,500 people

Annual Business Attraction Realities

• Annually there are approximately 1,011 corporate facility expansions/relocations that involve 100+ jobs

• The number falls to 106 corporate facility expansions/relocations that involve 500+ jobs

• When you consider that there are an estimated 40,000+ economic development groups competing for this limited pie, it is a tough marketplace

Source: The Conway Data New Plant Database, 2006

GRE’s Approach to Business Attraction

• Leverage local business leaders’ connections to companies likely to expand in key industry sectors
• Local leaders serve as matchmakers; GRE then delivers capstone presentations to senior executives
• Proactively cultivate stronger relationship with site selectors
• Implemented online mapping system to address requests for sites, buildings as well as “dot on a map” specific labor and wage data

GRE’s Approach to Business Attraction

• Foster relationship with senior industry experts to make connections in key industries
• Hired DCI and Quanstar to secure face-to-face meetings with senior executives within Fortune 500 and international companies
• Increase outreach efforts within targeted industries
• GRE team attending 30 trade shows and conferences during 2007; Secure face-to-face meetings at each show with senior executives responsible for expansion projects
• Leverage Internet to raise awareness of  our region via cost per click advertising

Coordinated and Timely Response is Critical 

• GRE provides project management in response to site selection RFP’s for the entire 9-county region
• Seamless and timely process; response time typically within 72 hours

• A few current examples:
• “Spyglass,” international manufacturing company considering consolidation of operations; could hire 480 to start and grow to 680 at full build out
• “Roads,” leading global financial services company seeking a shared service center to house 500 to 1000 employees
• “Lighter,” manufacturer and distributor of high-end fashion accessories and jewelry; projected to invest $23 million and create 400 jobs

More Projects 

• “South,” manufacturer of consumer paper products seeks facility to service east coast customer base; projected to invest $5.7 M and create 135 jobs
• “Greenstone,” California based company that produces “Green” building products looking for manufacturing location; projected to create up to 100 jobs

Build Destination Through Alternative Energy

• Create smart energy initiatives in downtown Rochester to revitalize central core
• Utilize High Falls in Downtown Rochester to produce Hydrogen for transportation, educational center, entertainment venues
• Implement US Green Building Council’s “Greenprint Rochester” which includes “Green Dozen” of initiatives
• Incentives for all new buildings to be LEED certified – Monroe County just announced such a program
• Make ‘green energy’ power sources visible to public – RGRTA just purchased hybrid bus fleet
• Consider demonstration project at Renaissance Square
• Other Ideas:
• Alternative Energy fueling stations
• Fuel cell school buses that every child rides

Imagine the Possibilities

Destination: Entire Rochester Region Wins

Each of Us Must Be An Ambassador

• GRE is creating messaging inclusive of assets from all 9 Counties – from Orleans to Yates and every county in between
• Instill a sense of pride in our entire local community
• Recognize the sum of the whole is greater than each individual county
• Move collaboration to action

Rochester Region’s Many Accolades

• Rochester Ranked 1st for Utility Patents Issued to Companies/Individuals per 1,000 Workers Metropolitan New Economy Index, 2001
• Rochester boasts 2.33 patents per 1,000 workers vs. U.S. average of 0.40 patents per 1,000 workers        
• One of the Top 20 Tech Cities in the country  Popular Science, 2005
• America’s 50 Hottest Cities for Business Expansion/Relocation Expansion Management, 2006
• Home to Two of the Best Public High Schools in America Newsweek, 2007

Recent Rankings Raise Region’s Profile

Rochester Region’s public schools ranked 6th nationally among major metropolitan areas        Expansion Management, 2007

Rochester, NY was rated #1 for the best quality of life among major U.S. cities Expansion Management, 2007

Rochester was named the 6th most livable city in the U.S. Places Rated Almanac, 2007

How We’re Promoting Pride in Rochester

• GRE’s Talk It Up print advertising campaign
• Print Ads every week in the Democrat & Chronicle reach at least 160,000 readers each week
• TV Ads and News Interviews on WROC TV

What You Can Do To Help

• Be an Ambassador -- Be positive about our region and the many reasons you live and work here when interacting with clients and colleagues outside this region.

• Be a Matchmaker -- Connect businesses with resources to thrive in the Greater Rochester Region.
• Do you have a client in another region who is expanding? Ask them to consider Rochester.

• Be a Rainmaker – leading initiatives to increase resources for new and established businesses.
• Look for a local supplier before partnering   with someone outside the region

Goal: Gain 20/20 Vision for Rochester

Clear vision for Rochester Region’s future success

Rochester is the most collaborative community in the world, creating outstanding economic success