Rochester 20/20 Vision
By Mark Peterson, Managing Director of Greater Rochester Enterprise.
A Clear Shared Vision for Greater Rochester Region
Goal: Gain 20/20 Vision for Rochester
Clear vision for Rochester Region’s future success
Gain clarity around best roadmap to achieve success
Our Shared Vision
Must promote a true collaboration among government, business and community organizations committed to creating a vibrant, thriving environment for existing and new businesses.
We Each Play Critical Roles
Our community grows stronger only with inclusiveness and real collaboration
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
Rochester Employment Situation
Total number of Rochester jobs as of September 2005 decreased -0.9% versus September 2004
September 2004: 510,100 jobs
September 2005: 505,600 jobs
Total number of jobs in U.S. grew +1.7% during same period
Rochester Region goal is to see growth rates on par with U.S. average
Estimated annual increase of 5,100 jobs
Roadmap To Create Economic Growth
Three pillars to drive economic growth
Retain and expand existing companies in our region
Attract new companies to our region
Support new emerging companies in our region
Consider a fourth pillar
Position Rochester Region as a “must see” destination built on community strengths
Proactive Retention Initiative
Develop data modeling approach with Sigma Marketing 1Q2006
Target local companies that have potential to expand in or defect from Rochester Region
Determine why companies expand within or leave Rochester Region
Key Deliverable:
Ranking of companies with high likelihood of expansion
Ranking of companies with high likelihood of defection
Ongoing – Share data with governmental agencies
Collaborate on best approach for each ranked company
Proactively deliver resources that insure expansion in Rochester Region, not defection to another region
Annual Business Attraction Realities
In 2004, there were 1,201 corporate facility expansions/relocations that involved 100+ jobs
The number falls to 148 corporate facility expansions/relocations that involved 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.
Rochester Must Still Pursue Business Attraction
Strategic Direction: Target business attraction efforts that leverage Rochester Region’s core assets
Optics, Photonics and Imaging
Healthcare/Biotech
Food and Beverage Manufacturing
“Smart Energy”
Maximize the use of assets – plant, property or human resources – to be an economic driver for Rochester Region
Key Factors For Site Selection
Quantitative research study among fuel cell, biotech and optics business leaders shows most important factors when considering expansion location:
Highly Skilled Labor at Competitive Wages (29%)
Proximity to Customers (21%)
Quality of Life (17%)
Tax Incentives for new businesses (11%)
Prime real estate at leasing cost below national average (9%)
Not sure (9%)
Varies by Project (2%)
Combination of all of these factors (2%)
World Leader In Optics, Photonics & Imaging
Rochester Region Assets:
55% of all optics degrees conferred in U.S. have been conferred by UR
UR’s Institute of Optics and Laboratory for Laser Energetics
RIT’s Imaging and Photonics Research Laboratory World-class research labs and facilities
Birthplace of the Optical Society of America (OSA); boasts the largest OSA chapter in U.S.
More than 50 optics companies in Rochester Region, employing nearly 30,000
University/Business Partnerships:
Infotonics Technology Center — Microsystems Center of Excellence for applied R&D and
commercialization of photonics and microsystems
Center for Advanced Technology in Electronic Imaging Systems NYSTAR — Develops and
transfers technology to industry for commercialization
Top Firms: Kodak; Xerox; B&L; Corning Tropel; JML Optical Industries; QED Technologies
Healthcare - Biotech Market Is Booming
Situational Analysis:
Biotech industry projected to grow at annual rate 13% higher than other industries through 2012
Biotech wages average $62K versus $36K national average
No wonder 40 states have programs to target this industry!
Rochester Must Play In Healthcare – Biotech
Rochester Region Assets:
Rochester Region has assets for success - active research community, highly-skilled and educated workforce
70+ biotech companies based in Rochester Region concentrated in medical device manufacturing, biomedical imaging and vision science
Employ more than 7,000 people
Ranked among the Top 40 U.S. Biotech Location
Ranked 3rd for number of college graduates with Life Science degrees per capita
University/Business Partnerships:
U of R dedicated $500 million over past decade to add two state-of-the-art laboratory buildings and 80 Ph.D. researchers
Johnson & Johnson & URMC working together to support biomedical research via Discovery
Concept Fund
RIT has renowned curriculum of bioinformatics academic and research programs, along with the Center for Biotechnology Education
Top Firms: Bausch & Lomb, BioPhan Technologies, Genencor International, Kodak Health Imaging, Ortho Clinical Diagnostics, UCB Pharma
Bountiful Food and Beverage Strengths
Rochester Region Assets:
More than 100 food and beverage companies based in Rochester Region, employing nearly 6,500
Wine, frozen vegetables, snack foods, Cool Whip
Rochester Region is the #1 wine producing region in New York State with more than 90 vineyards
Rochester Region is the largest milk producing region in New York State
University/Business Partnership
The Cornell Agriculture and Tech Center established to foster agriculture, food and bio-based technologies
Collaboration between Constellation, Wegmans and RIT to develop The New York Wine and Culinary Institute, scheduled to open in 2006
Top Firms: Constellation Brands, Wegmans Food Markets, LiDestri Foods, Kraft, Birds Eye Foods,
Seneca Foods
Smart Energy Right Here, Right Now
Situational Analysis:
Global-market for fuel cells projected to be $46 billion a year by 2011
Forecasted to yield 200,000 new jobs in next 20 years
Rochester Region Assets:
Developing smart energy solutions in 3 major market sectors:
Portable, Stationary, and Transportation
Light your way; Heat your home
Power your cell phone; Power your equipment
Power your car
We’re ranked among the Top U.S. locations for general engineering and fuel cell-related R&D occupations
University/Business Partnerships:
Renewable Energy Network Entrepreneurs of WNY, collaborative effort to identify, incubate and create renewable energy companies
University of Rochester budgets more than $50 million in fuel cell-related R&D expenditures, ranking among the leading universities nationwide
RIT has created an Advanced Fuel Cell Research Lab – and 1 of only 4 Hydrogen Technology
Learning Centers in the country funded by the U.S. Department of Energy
Billions Available For Smart Energy Projects
Seize Rochester’s portion of the $4.0 billion Federal Energy Bill – $1.3 billion earmarked for fuel cell demonstration projects
Create the Emerald City – building on emerging leadership in smart energy
Create Hydrogen Village adjacent to High Falls
Demonstration projects for Renaissance Square
Expand our smart energy R&D activities
Proactive Approach to Smart Energy
Proactive Next Steps:
Share leads with our economic development partners and create an attraction plan for each lead
Plan to include input from Fuel Cell leadership, government officials and economic development agencies
Proactively and aggressively approach each high-priority lead to achieve personal visits by a Rochester team for recruitment or partnership purpose
Continue to pursue data on remaining companies that have not yet responded to direct mail campaign
Entire Rochester Region Wins
Smart Energy Initiatives Are Win/Win For Region
Create construction jobs to rebuild city
Redeploy local manufacturing expertise into emerging industry
Build a platform for attracting new smart energy companies
Create a “must see” destination that will attract visitors
Rochester Creates Energy Independence – a whole new lifestyle
Other Communities Are Enjoying Success
Columbia, SC – Focus on Smart Energy
Political, business and research leaders created action plan to develop and commercialize use of fuel cells
In less than 5 years they expect:
Fuel cell shuttle to run from airport to university
University of South Carolina’s Innovista will be home to advanced research teams focused on smart energy
Florida – Focus on Smart Energy
Created Florida Hydrogen Business Partnership – taskforce of public and private sector
Developed commercialization strategy with detailed steps for attracting hydrogen- related business
Florida has funded 15 demonstration projects to exhibit hydrogen’s potential (e.g. shuttle bus, car)
San Francisco, CA – Focus on biotech
Clustering of 400+ biotech companies that collectively spot strategic shifts; share same scientific and business development needs for space, equipment, personnel
CA State estimates this clustering effect has created 85,000 jobs, $4.1 billion in worldwide sales
Albany, NY – Focus on nanotechnology
NY State invested $500 million in nanotech industry to transform beyond dependency on government and rust belt industries
July 2005 secured $600 million in mix of state, federal and private sector funding
Resulted in estimated 500 jobs with projected growth to 1,700 jobs in 2006
Foster Right Climate For Emerging Businesses
Create more start ups in Rochester Region
Increase success rate of start ups through mentoring and access to capital
Expedite university spin out process
Promote Rochester Region as entrepreneurial hot spot
Activities To Create Right Climate
Pre-Seed Workshop
Six "ideas" from UR and RIT through pre-seed process. Four teams are pursuing formation of companies.
Formation of Rochester Angel Network (RAN)
29 business plans reviewed; 12 presentations to Angels; 3 deals funded; 5 under discussion
Business Plan Competition
International competition in development with involvement from “Golden Horseshoe” region
National Association of Seed and Venture Funds
Won opportunity to host 2006 Annual Conference bringing 300+ Venture Capitalist professionals to Rochester
Opportunity to Support Emerging Business
$15 million WIRED (Workforce Innovation in Regional Economic Development) grant from U.S. Department of Labor
Collaborative effort among government, university and economic development groups
Supports programs focused on entrepreneurial community
Champion Rochester Region’s quest for 1 of 10 available New York State Foundation for Science, Technology, and Innovation partnerships
Supports job creation
Supports economic growth and advances in fields of science, technology, and innovation
Facilitate commercialization of scientific and other innovations
We’ve Only Just Begun To Get National Recognition
Top 20 Tech Cities in the US Popular Science, 2005
America’s 50 Hottest Cities for Business Expansion/Relocation Expansion Management, 2006
Best Places for Business and Careers Forbes, 2005
Entrepreneur's Hot 100 Company List
5 Firms among “Inner City 100: Fastest Growing Co’s in America’s Inner Cities” Inc., 2004
Let’s Chart A New Course Together
What can we all do to realize 20/20 vision for Rochester?
Our Shared Vision
Must promote a true collaboration among government, business and community organizations committed to creating a vibrant, thriving environment for existing and new businesses.