When many of us think of economic development we think of the new companies coming to town bringing new jobs and capital investment to the region.While new business contributes to the economic health of a community, retaining and growing existing business is equally vital to a vibrant economy.
Many economic development authorities focus primarily on business attraction which remains a high stakes endeavor as each year the competition among states rises while the number of companies relocating continues to fall.
EDAWN dedicates significant resources to recruiting quality companies to the region promoting our highly attractive pro-business climate.
Simultaneously,we look for ways to differentiate our region from others across the country with companies considering relocation and expansion and let them know once they're here we want them to stay.
One of those key points of differentiation is EDAWN's business retention and expansion program that offers companies looking to move here from other states, and those companies that are currently here, assistance with their expansion projects.
Once a company that we have worked with has moved to the region, we connect it to the business services department for continued follow-up from a business expansion perspective.
The message we're sending to companies that bring high-paying jobs to the region is "We want your business, and when you're here,we won't forget about you." In 2002, EDAWN transformed its operation to commit to a comprehensive business retention and expansion program that has become one of the first of its kind in the United States.
EDAWN's business services department developed a program which is considered by many economic development organizations as a model for business retention in Nevada and the United States.
Through Business Builders, a group of more than 160 certified trained volunteers, EDAWN assists primary companies in the area with their retention and expansion projects.
Primary companies are defined as those companies that export 50 percent or more of their goods and services out of the state thereby bringing new dollars to our community.
In the past three years, the department has worked with more than 20 companies on retention and expansion projects ranging in size from an economic impact of $3 million to more than $66 million.
It is important to note that the economic impact generated from expansion projects calculates only the number of jobs added and the amount of capital and square footage added not the impact of the entire operation as it is measured for new companies moving into the area.A recent example is RR Donnelley, a global printer with a division located in Stead.
The company recently expanded adding 26 high-paying jobs and investing nearly $37 million in new equipment.
The expansion had a $4 million impact on the region.
Our community benefits from quality companies like RR Donnelly staying and expanding instead of leaving the area and taking with it vital employment opportunities and financial investment in our area worth tens of millions.
Since July 2004, EDAWN has worked with a total of 36 companies of which 33 percent are expansion and retention projects representing 15 percent of the nearly $250 million economic impact to the region.
Both the number of companies assisted as well as the impact generated is significant when you consider EDAWN did not have a formal retention and expansion focus just three years ago.
With each year, both the number of companies assisted as well as the impacts generated will continue to grow as the program continues to reach out to local businesses and gains greater exposure.
The success of a business retention and expansion program depends on a number of key strategic initiatives that include member volunteers, a targeted focus on primary businesses, an innovative web-based program and strong community partnerships.
* Member volunteers: We encourage our members to join the Business Builders committee.
This is a working committee where member volunteers agree to help staff conduct confidential business surveys.
Each member volunteer must first attend an EDAWN Business Builder certification class.
* Quarterly business surveys: Each quarter a different primary industry is targeted for interviews to identify key opportunities, issue or trends within the industry.
The industry sectors are: finance, insurance, logistics, transportation/distribution; tourism, hospitality and recreation; manufacturing; and call centers,medical, pharmaceuticals and technology.
*Web-based program: Business Builders utilizes an innovative web-based program that allows our volunteers to choose companies to interview and maintain online data on the status of each company, its expansion and/or retention efforts and identify opportunities to follow up.
The interview data is entered into a software program, Synchronist, designed specifically for retention and expansion management.
Staff then responds utilizing many of our partner agencies to the individual needs of companies.
A series of reports are generated from the software program that allows us to be proactive with respect to business concerns and issues.
The Synchronist master license for the State of Nevada was funded by a grant from the Nevada Commission on Economic Development in 2001.
EDAWN was the first economic development authority in the state to purchase the sub license to use the software locally.
* Partnerships: Since 2002, EDAWN has assisted other economic development authorities to launch business retention and expansion programs of their own, including the Northern Nevada Development Authority.
Additionally, EDAWN, in conjunction with the Nevada Commission of Economic Development, has assisted the Nevada Development Authority in Las Vegas and local government entities to begin a cooperative program in Clark County.
When it comes to economic development healthy communities are those that take care of what they have by growing the business in their own backyard.
Gail Conkey is director of business services for the Economic Development Authority of Western Nevada.
