Making the Most of Statewide Business Retention, Expansion, and Modernization Efforts (cont.)

In an effort to answer some of these questions, we have identified four examples of BR&E programs that are proactive by design, and that bring together a wide range of services in order to maximize their effectiveness for small to mid-sized manufacturing firms. The common theme across each of these models is that they serve manufacturing customers in their respective states.

In addition to providing direct service, each of these models has a “catalyzing” and “brokering” function – that is, they work across organizational lines to bring appropriate resources to manufacturing firms. Each has a different organizational structure and level of authority, so they use different means for creating synergies between relevant BR&E players. These four models also vary by geographic scope, age and funding sources.

Four models

• The Strategic Early Warning Network – SEWN (Western Pennsylvania)
The Pennsylvania Steel Valley Authority’s Strategic Early Warning Network (SEWN) is a sub-state, nonprofit layoffaversion contractor. SEWN was launched in 1993 to monitor industries in southwestern Pennsylvania and develop strategies to retain key manufacturers and other businesses when they appear to be at risk of closure or major downsizing. The network provides confidential, efficient operational and financial restructuring, turnaround, buyout and labor management services to firms in distress. SEWN is unique in its strategy to bridge private market solutions with public resources: It implements market solutions supported but not dictated by public economic development assistance for troubled firms.

Since 1993, SEWN has worked with approximately 450 companies representing over 25,000 full-time employees. The network has contributed to the retention or creation of 12,400 jobs over this period. In addition, SEWN has saved the Commonwealth of Pennsylvania hundreds of millions of dollars in wages that would otherwise have been lost, plus taxes and required income supports. The network, which got its start in 10 counties, grew to 21 countries and was recently expanded by the Rendell Administration to cover a total of 49 counties.

• Foundations for Growth (Alabama)
Foundations for Growth is a statewide program that was initiated by the Economic Development Partnership of Alabama Foundation (EDPA Foundation) to help strengthen programs and policies for Alabama’s existing industry. The initiative employs a state-of-the-art software application along with a consistent set of business visitation procedures to enhance BR&E efforts throughout the state.

EDPA Foundation purchased a master license for the Synchronist business retention and expansion software program. Access to the software is made available to any local or regional economic development organization in the state through licensing agreements. The program’s approach to data collection is to sell local communities on the concept and then provide the necessary support elements (software and training).

Representatives at the county, multi-county or regional level organize themselves and contact EDPA to work out agreements. This helps to create new and better relationships and provide effective follow-through on issues and problems raised in the interviews. The program has two key goals: to help local economic developers create a consistent approach for building relationships in their respective communities, and to help the economic development community analyze and understand trends both in their local regions and statewide.

In 2004, the EDPA Foundation offered Foundations for Growth to all 67 counties in Alabama. In less than one year, more than half of the state’s counties had signed on to this system. Today, 52 Alabama counties are participating. In its first year of operation alone, the program had positively impacted more than 300 Alabama businesses.

• Westside Industrial Retention and Expansion Network – WIRE-Net (Cleveland, Ohio)
The Westside Industrial Retention and Expansion Network (WIRE-Net) is a membership-based economic development organization that seeks to retain, grow, and attract manufacturing- related businesses and to link leaders to each other and to Cleveland’s west side community. WIRE-Net’s approach to the issue of industrial retention is to combine labor force programs with direct assistance to member firms.

With local manufacturers as its primary constituency, WIRE-Net offers a number of programs, including manufacturing and technology assistance, peer-to-peer learning, inter-firm collaboration, manufacturing advocacy, and an array of business consulting services. As a pioneer of “neighborhood- based industrial cooperation,” WIRE-Net acts as an intermediary between businesses and the community. WIRENet’s membership structure creates a unique environment of collaboration between companies and economic developers, allowing the retention efforts of WIRE-Net to reach beyond traditional “outside the plant gate” issues such as workforce and infrastructure to inside issues such as management assistance and strategic planning.

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