DRAFT 8/5/20
CITY OF NEW ALBANY
ECONOMIC DEVELOPMENT PLAN UPDATE
FEBRUARY 2021
PREPARED BY:
PO Box 3547
Saratoga Springs, NY 12866
518.899.2608
www.camoinassociates.com
Submitted to:
City of New Albany
99 W. Main Street, PO Box 188
New Albany, OH 43054
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
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ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
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ACKNOWLEDGEMENTS
Thank you to the following individuals and organizations for their
participation in the creation of this Economic Plan Update:
CITY OF NEW ALBANY LEADERSHIP AND STAFF
Sloan Spalding
Mayor
Community Development Director
Joseph Stefanov
City Manager
Economic Development Specialist
Colleen Briscoe
New Albany City Council Representative
Development Services Coordinator
COMMUNITY IMPROVEMENT CORPORATION
Philip Smith, President of CIC
Global & National Audit Leader-Industrial Manufacturing, KPMG
President and CEO, SafeAuto
Jim Baron
Executive Vice President, Huntington Bancshares
Senior Vice President and Treasurer, Abercrombie & Fitch
REGIONAL AND COMMUNITY ORGANIZATIONS
Kenny McDonald, CEcD
President & CEO, One ColumbusUS
Kristy Campbell
Chief Operating Officer, Rev1 Ventures
Neil Collins
Onsite Leader, Innovate New Albany
THE CONSULTING TEAM ALSO THANKS THE LEADERS
OF THE NEW ALBANY BUSINESSES WHO INTERVIEWED
DIRECTLY WITH OUR TEAM
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
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CONSULTANT TEAM
Camoin 310 has provided economic development consulting services to municipalities, economic development agencies, and private
enterprises since 1999. Through the services offered, Camoin 310 has had the opportunity to serve EDOs and local and state
governments from Maine to California; corporations and organizations that include Lowes Home Improvement, FedEx, Amazon, Volvo
(Nova Bus) and the New York Islanders; as well as private developers proposing projects in excess of $6 billion. Our reputation for
detailed, place-specific, and accurate analysis has led to projects in over 40 states and garnered attention from national media outlets
including Marketplace (NPR), Forbes magazine, The New York Times, and The Wall Street Journal. Additionally, our marketing strategies
have helped our clients gain both national and local media coverage for their projects in order to build public support and leverage
additional funding. We are based in Saratoga Springs, NY, with regional offices in Portland, ME; Boston, MA; Richmond, VA and
Brattleboro, VT. To learn more about our experience and projects in all of our service lines, please visit our website at
www.camoinassociates.com.
Rachel Selsky, Vice President
Project Principal
Victoria Storrs, Development Finance Practice Leader
Project Manager and Lead Analyst
Jessica Tagliafierro, Senior Analyst
Project Researcher and Analyst
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
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EXECUTIVE SUMMARY
OBJECTIVES
The City of New Albany has been proactively pursuing economic development initiatives for well over a decade, guided by the 2006 Economic
Development Plan and within the city’s updated Strategic Plan. With the many changes in the regional and national economy since then, and the
successful implementation of the original 2006 recommendations, the city sought to develop an updated plan to identify opportunities for growth
in a way that aligns with the larger community goals, especially as presented in the Engage New Albany plan that is also underway.
New Albany is in a position of strength. The vision, the drive, the reputation for excellence, and the commitment to partnership throughout the
business and resident community are in place. The city’s economic development team has demonstrated the value of deliberate planning,
communication, and exceptional follow-through, in keeping with city’s overall Strategic Plan. A major goal of the Economic Development Plan Update
is to keep the city moving forward with a plan for implementing specific initiatives that are derived from up to date research and analysis on the
economic conditions, businesses, and city assets that have fostered growth. Another, equally important, goal is to create a framework that will prepare
the city and its economic development team to manage these activities deliberately, and to choose when to lead and when to act in collaboration
with partners. The organizational guidance reflects the city’s existing expertise, deep understanding of economic development, and effective
communication style that have all played a critical role in the recent successes in New Albany.
The New Albany Economic Development Plan Update reflects five overarching principals:
♦ Apply proactive goal setting, activity and outcome planning, partnerships, and organizational
techniques to compete for businesses and maximize the effectiveness of New Albany’s
economic development team.
♦ Enhance New Albany’s competitiveness as a location both for residents and for a wider array of
business sizes and industries, including encouraging “Main Street” and small business that
contribute to the community’s quality of life. A Main Street business is a small business that is
often locally-owned and located in a commercial district or downtown center.
♦ Actively promote Main Street and small business creation, growth, and retention through
stronger partnerships in the region’s innovation ecosystem.
♦ Maintain competitiveness for existing industry sectors and remain selective in competing for new
companies.
♦ Identify new industry cluster opportunities and continue to be a competitive location for
businesses in the targeted sectors.
Work on this Economic Development Plan
Update was completed during a period of
economic uncertainty created by the
COVID-19 pandemic and related business
restrictions. Throughout this report trends
related to COVID-19 are acknowledged,
and strategies are developed with the
intent of creating an even more diverse
economy that will continue to be resilient
in the face of inevitable future economic
disruptions.
COVID-19
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
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WORK COMPLETED
To fully understand New Albany’s successes since the completion of the 2006 plan, and to inform strategies that will further expand and diversify the
city’s economy, the Camoin 310 team completed an Economic Baseline Analysis, an Economic Drivers Inventory, and an Industry Cluster Analysis.
These documents are included in the full report with key findings included below. A series of six stakeholder interviews with business and
entrepreneurship leaders along with a number of roundtable discussions with economic development staff were conducted to inform the data and
better understand New Albany’s strengths and opportunities. The Economic Development Plan Update includes the following research:
♦ The Economic Baseline Analysis provides an understanding of the foundation of New Albany’s growth, its position as a competitive location
for major industries, and the regional workforce that powers its economy through three sections: the Socioeconomic Analysis, the Industry Trend
Analysis, and the Workforce and Skills Analysis.
♦ The Economic Drivers Inventory outlines the community factors that play a role in supporting or deterring growth.
♦ The Industry Cluster Analysis highlights competitive trends in existing industry clusters and presents forward looking industry opportunities.
♦ Finally, the Action Matrix is informed by all the previous work and recommends goals, strategies, and tactics for the City of New Albany and its
partners.
ECONOMIC BASELINE ANALYSIS
The Economic Baseline Analysis is designed as a snapshot, with history and estimated projections, of the city’s socioeconomic, industry, and workforce
trends and assets. It is a foundation for deeper analysis of the city’s industry clusters, and for the recommendations and planned activities that will
be the capstone of the Economic Development Plan Update. The Economic Baseline Analysis includes three sections: the Socioeconomic Analysis, the
Industry Trend Analysis, and the Workforce and Skills Analysis.
This report was written during a time of great uncertainty about what economic and employment changes will arise from the Novel Coronavirus, or
COVID-19, pandemic, yet the nature of data collection is to lag current events by months or longer. When data series are fully updated over the next
several months to a year, the sources used here may show an inflection point in the spring of 2020, for better, worse, or just for change, but that
inflection is not yet visible in time series data. Furthermore, projections based on data prior to March of 2020 will certainly be wide of the mark.
Given this uncertainty, it’s reasonable to ask whether it’s productive to look backward or consider estimates based on history. A plan that is strongly
tied to the demands of a particular environment may not be adaptable enough, or relevant enough, to continue implementing over a three or five
year period.
The first answer is that understanding what New Albany has experienced in its jobs and industries is critical to understanding why it has been growing
successfully, and what the core economic assets are; this knowledge is essential to frame a path forward. It also shows what New Albany can directly
affect, and what results from macroeconomic and other forces.
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Second, forward-looking estimates based on the recent past serve as a baseline for what can be achieved – or could have been – without the
economic disruptions. They can be a baseline and touchstone to measure what is changing, and where the effects are felt most strongly.
These both provide critical intelligence and perspective for managing any period of change or turmoil; the best-prepared plan is always implemented
over time and changing conditions.
Finally, the basic purpose of the Economic Baseline Analysis remains the same, despite the continuing unknowns. It provides knowledge to share and
launches the discussion that is the core of the report. Key findings are summarized below with supporting data and tables in Chapter 2.
KEY FINDINGS
PREPAREDNESS AND RESILIENCE
♦ New Albany has been highly successful in attracting and retaining businesses, workers, and residents. The city demonstrates a high degree of
preparedness, commitment, and engagement, that will position it for continued economic growth and resilience during periods of rapid change:
♦ The regional workforce is highly educated and highly skilled, satisfying one of the most challenging demands of employers. Initiatives such as
SmartRide make jobs in New Albany accessible for workers who live throughout the Columbus metro area. 98% of workers commute into the
city for work from places like Columbus, Newark, Reynoldsburg, and Gahanna, while 2% of workers are residents of New Albany.
♦ The business climate is intentionally friendly and supportive, and a community that already has a history of working with employers is best
positioned to identify and implement strategies to maximize their ability – and willingness – to stay and to retain as many employees as possible.
♦ The Columbus region will remain an important, economically diverse metropolitan area and potentially grow in importance, as new concerns
about the most densely populated cities accelerate recent trends among younger workers and families to seek a better balance of satisfying
work and quality of life and cost of living.
SOCIOECONOMIC – A FOUNDATION FOR CONTINUED GROWTH
♦ New Albany is growing. New Albany’s population is growing at a faster rate than the Columbus MSA and the state. The city’s population has
increased by 29% since 2010, compared with the MSA’s 11% This growth is expected to slow to 12% by 2024, but still be higher than the MSA’s
5% and the 1% estimated for the State of Ohio.
♦ Families are prevalent in New Albany. New Albany’s average household size of 3.12 is higher than the surrounding region. The city has a higher
proportion of children in the age 5-19 range and adults in the 45-59 range than the MSA and the state.
♦ New Albany households have comfortable incomes. New Albany’s median household income of $166,580 is more than double that of the MSA.
More than 42% of households have income in excess of $200,000.
♦ New Albany’s population is well educated. At least 40% of residents have a Bachelor’s degree and over 33% have obtained a graduate or
professional degree.
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INDUSTRY TRENDS – NEW ALBANY IS COMPETITIVE AS A LOCATION FOR REGION’S MAJOR INDUSTRIES, AND ITS RESIDENTS ARE IN DEMAND TO
FILL JOBS IN THE MSA
♦ Health Care and Social Assistance is the top private sector in the Columbus MSA, comprising 16% of the region’s total jobs. This is followed by
Retail Trade (9% of jobs) and Accommodation and Food Services (8% of jobs).
♦ New Albany’s economy includes large companies that operate in well-paying sectors. Many businesses in the city are in Management of
Companies and Enterprises, Finance and Insurance, , and Information Technology sectors. Based on regional data, average earnings per job in
these sectors are higher than the average earnings per job of all jobs in the MSA ($64,908).
♦ The regional economy is growing. Nearly 86,000 jobs have been added to the Columbus MSA since 2014- an 8% growth rate. Transportation
and Warehousing and Health Care and Social Assistance are the top growing sectors by far, with each adding over 17,000 jobs. Growth is
projected to continue over the next several years.
♦ Management of Companies and Enterprises, Transportation and Warehousing, and Finance and Insurance are the most highly concentrated
sectors in the region. Major companies in these sectors are located in New Albany.
♦ New Albany is a jobs driver in the region. New Albany has been successful at attracting and retaining large companies like Abercrombie & Fitch
and Discover that bring substantial jobs to the city. The Business Park houses more than 15,000 jobs, compared with a population of just over
10,000 residents. 98% of the jobs are filled by commuters.
♦ New Albany residents are in demand to fill jobs throughout the MSA. 92% of working New Albany residents have jobs in other communities in
the region.
WORKFORCE AND SKILLS – NEW ALBANY’S CLUSTERS ARE POWERED BY A STRONG REGIONAL WORKFORCE
♦ Office and Administrative Support Occupations are the most prevalent jobs in the region. These roles account for 16% of jobs in the Columbus
MSA. This is followed by Sales and Related Occupations which comprise 9% of jobs.
♦ The top occupations in the MSA require minimal work and educational experience. These occupations include Food Preparation, Laborers, and
Retail Salespersons. An Associate’s degree is the most common educational credential specified by job postings.
♦ Regional employers seek skills across a variety of levels. The top hard skills being sought are selling techniques and merchandising. The top
common skills are communications, management, customer service, sales, leadership, and operations.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
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ECONOMIC DRIVERS INVENTORY
The Economic Drivers Inventory complements the Economic Baseline by providing a description of the community factors that play an important role
in supporting or deterring growth. These factors include the relative mix of public and private sector activity in the economy, local approaches to
working with existing and potential businesses, land use and master planning, and innovation and entrepreneurship assets. Identifying which drivers
are working well, and which may need adjustment, is part of the groundwork for building a targeted plan with specific tasks. This segment begins
the transition from the largely data-driven, quantitative analyses in the Economic Drivers Analysis to using research in developing the Action Matrix.
Key findings are summarized below with additional details and analysis included in Chapter 3 of the full report.
KEY FINDINGS
♦ A supportive business environment and strong private sector have made New Albany an attractive place for businesses. The following economic
drivers contribute to making New Albany a desirable place to do business:
♦ Deliberate planning and development have created a strong, business-friendly foundation. The New Albany International Business Park is the
centerpiece of these efforts, but the values of planning and looking forward inform decisions and practices throughout the community.
♦ A comprehensive incentive offering has helped to induce investment in the Business Park. Incentive packages are crafted to ensure new
investment is balanced with meeting community fiscal goals.
♦ Large companies are job drivers in the region but small companies are becoming increasingly prevalent in the region, creating a diversity of
business and network opportunities.
♦ Access to regional labor pools and transportation networks support New Albany’s industries.
♦ By working with partners to plan for the infrastructure needs for new and emerging industry clusters, New Albany has supported business
attraction and development.
♦ Regional job opportunities coupled with a high quality of life in New Albany attract residents to the city.
♦ Some COVID-19 related disruption is expected in the commercial and industrial real estate markets, however New Albany’s suburban location
and strong manufacturing presence are expected to temper this risk, relative to the larger region.
♦ Businesses in New Albany access a regional workforce that is growing, but skills needed for manufacturing, customer service, and data centers
are demanded by many employers. As further discussed in the later Industry Cluster Analysis, skills such as SQL, agile software development,
auditing, and java are frequently sought after by data center, corporate office, and manufacturing cluster employers.
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INDUSTRY CLUSTER ANALYSIS
PURPOSE OF THE CLUSTER ANALYSIS
New Albany uses a cluster strategy as one of its tools to gain a competitive advantage in
attracting, supporting, and growing businesses that are a good fit for the community and are
likely to thrive. This understanding of existing and potential industry clusters was created
through research on specific industries and on trends that cross industries, such as workforce.
Quantitative data collection and analysis was paired with qualitative information including
interviews with existing New Albany companies.
Over the past 15 – 20 years, clusters have been fostered in Corporate Office and Research &
Development, Personal Care and Beauty (Beauty Campus), Information Technology and Mission
Critical, and High-Tech Manufacturing and Logistics. A Healthcare Services cluster has also been
growing and is included here as an emerging cluster. As part of the Economic Development Plan
Update, these clusters are evaluated to assess their continuing competitiveness, including:
♦ Confirming that these are the right industries to embrace for the next 3, 5, or 10 years.
♦ Looking for subsectors that have matured into their clusters in their own right.
♦ Recognizing emerging subsector opportunities within existing clusters.
♦ Identifying an aspirational cluster for additional diversification.
The Industry Cluster Analysis begins with a short overview of two trends that are critical to
understanding near- to mid-term workforce needs. It then reviews each of New Albany’s existing
clusters and evaluates two emerging opportunities: recognizing and building Healthcare
Services as a full cluster, and within Logistics focusing on the crossover with IT. Key findings from the analysis are summarized below.
Information Technology and Mission Critical Personal Care and Beauty Campus
Corporate Office and R&D EMERGING Healthcare Services
High-Tech Manufacturing and Logistics
The Brookings Institution on why clusters
matter: ‟Regional economies grow and
decline based on their ability to specialize in
high-value industries and then evolve those
specializations over time. The practice of
cluster-based economic development aims
to capture the economic advantages that
accrue for firms when they cluster together
in place -
what academics call
agglomeration. Agglomeration helps firms
be more productive through three
mechanisms: sharing tailored facilities,
infrastructure, and suppliers; matching
workers productively through deep labor
markets; and learning through dense,
knowledge-rich environments that facilitate
knowledge exchange and innovation
between interdependent firms.”
Donahue, Parilla, and McDearman. (2018).
Rethinking Cluster Initiatives. Metropolitan
Policy Program at Brookings.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
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KEY FINDINGS
♦ New Albany’s clusters are well served by the city’s competitive assets. Each industry cluster in this report includes a list of competitive factors
and supporting assets in New Albany. The table below shows six critical assets that the city has proactively built and nurtured over time, and that
serve multiple clusters. Continuing to invest in these assets is essential to maintaining the health of the existing clusters and the city’s economic
base.
♦ Corporate Office and R&D have been combined as a cluster in response to the dual nature of existing major companies. As R&D has grown and
become more distinct, it is becoming a cluster in its own right. While R&D would remain connected to each industry conducting the activities,
recognizing it as a cluster can enable the city to identify and monitor shared critical assets such as proximity to a research university such as Ohio
State, skilled lab workers and researchers, and space for clean rooms and specialized equipment. A robust innovation ecosystem provides
opportunities to share ideas across industries and businesses.
♦ High Tech Manufacturing and Logistics have also been combined, since manufacturing supply chains and distribution of finished products must
be stored, managed, and moved. Most logistics activities are currently undertaken by the parent company in New Albany, but nationally third-
party logistics firms are increasingly serving companies of all sizes and enabling those companies to focus on their core business. A second trend
is for information technology to play a greater role, expanding the industry beyond warehouses and transportation and into sophisticated
tracking, scheduling, and inventory and supply chain management. Information technology-driven logistics is identified as an emerging
opportunity for New Albany because it connects local manufacturing needs to the resources of the Information Technology cluster.
♦ It is important to recognize where the city’s economy diverges from the national aggregate results, and to continue to focus on what makes
industries do well regionally. For example, manufacturing’s contribution to Columbus MSA GRP grew 14% and jobs grew 5% (3,360 new jobs) in
the five years ending in 2019, despite contraction in many parts of the U.S. Another example is the demand for office space: according to national
research from CBRE, the first quarter of 2020 showed positive absorption of space and stable vacancy rates, with 79% of leasing volume in the
suburbs. The second quarter proved resilient and new projects continue to be built, especially in suburban markets
1
.
1
CBRE Market Overview, Columbus Office, Q1 2020 and Q2 2020
Competitive Factor New Albany Asset
Information
Technology and
Mission Critical
Corporate Office
and R&D
High Tech
Manufacturing
and Logistics
Emerging:
Logistics
Information
Technology
International
Beauty Campus/
Personal Care
Healthcare
Services Delivery
Emerging:
Telehealth
Talent Pool and Training Columbus MSA
Experienced Executives City Quality of Life
Suitable Sites, Rapid Local Processes City Master Plan, Business Park
Cost Effective, Reliable Electricity AEP Transmission Network
Fiber Broadband Municipal Fiber Optic Network
Capital Investment Incentives Well Designed, Directly from City
Competitive Assets by Existing and Emerging Industry Cluster
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
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ACTION MATRIX
The New Albany Economic Development Plan establishes strategies and supports each with a rationale, specific initiatives, priority, city role, timeframe
and outcomes. These are gathered in the Action Matrix. While the format is linear, the strategies are closely interrelated, for example maintaining
New Albany’s attractiveness to new business is its own strategy, but the Business Expansion and Retention initiatives also support those goals in
addition to promoting the health of a wider array of businesses. These strategies and initiatives are not prescriptive, and the first, “Create a decision
framework for the city’s economic development activities,” is specifically intended to help the city’s economic development team remain flexible and
responsive over time. Details for each of these goals and strategies are included in matrix form in Chapter 5, including description, detailed tactics,
priority level, partners, and more.
COVID RESPONSE: Take Immediate Action to Address COVID Related Impacts
Rationale: The City of New Albany Economic Development Plan Update has been written during a period of immense economic
disruption and upheaval as the COVID-19 pandemic continues to wreak havoc around the world. The economic and public health
landscape are changing on a daily basis and the full impact of the pandemic is yet to be known. The majority of the New Albany Economic
Development Plan is future forward and assumes some level of normalcy will return, however there are critical steps that need to be
taken immediately in order to support existing businesses and build resiliency within the economy.
Establish a six-month intensive BRE program focused on major employers and office users.
Maintain an inventory of resources and partners for businesses to access.
Develop technical assistance for businesses in a post-COVID reality.
1. Create a Decision Framework for the City’s Economic Development Activities.
Rationale: Being able to retain current flexibility and the ability to pivot during changing economies and for unique opportunities will
build resilience and strength for the city. With a framework, individual activities and decisions are understood through desired outcomes
and priorities can be set, successes and gaps understood, and decisions made about when to act directly and when to use a partner or
hire a specialist.
Initiative 1.1: Identify the Best Role for Economic Development across Different Service Areas.
Initiative 1.2: Identify Gaps in Financial Incentives and Establish Performance Metrics.
Initiative 1.3: Assess the City’s Goals for the Innovate New Albany Incubator and Other Innovation Activities.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
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2. Maintain New Albany’s Leadership as a Competitive Location for Existing and New Businesses.
Rationale: New Albany has successfully attracted and fostered major businesses in several industry clusters. For industry growth and
continued diversification, the next steps are to select additional medium-term targets and review the potential advantages of
disaggregating large existing clusters. Remaining a leader in the region and state for enabling businesses to thrive requires maintaining
access to a competitive workforce, growing the small business sector, and pursuing collaboration.
Initiative 2.1: Promote Continued Expansion and Retention of a Competitive Workforce.
Initiative 2.2: Bring Small Businesses into the Conversation.
Initiative 2.3: Prepare for Continued Growth and Emerging Opportunities in Existing Industry Clusters and for Potential
New Industries.
3. Upgrade to a Smart, Data-Driven BR&E Program and a Proactive Attraction Program.
Rationale: Business retention and expansion efforts play a crucial role in sustaining existing companies as well as generating leads for
new projects and gathering business intelligence to inform attraction efforts. New Albany is attentive to its existing businesses, but the
process and intelligence gathering has not been fully planned or formalized. The next step is to create a system that continues good
practices, identifies service gaps, and reaches more companies. Building off the success of recent attraction and expansion efforts, New
Albany now has the ability to be much more selective and proactive when it comes to attracting new businesses and investment. New
Albany is recognized as a premier place to do business and should use this position to direct growth in a way that will have the greatest
return on investment and most positive impact.
Initiative 3.1: Establish a More Formalized Business Retention & Expansion Program.
Initiative 3.2: Continue to be Selective in Attracting Businesses to New Albany.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
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4. Integrate Innovation and Entrepreneurship with Existing Businesses and Resources.
Rationale: The City of New Albany and the Columbus region show strengths in services offered around networking, market validation,
and access to capital for high-growth technology companies. Gaps exist in financial literacy, investment knowledge, and overall support
for Main Street and small businesses. Encouraging the innovation ecosystem to open up to more participants will increase idea exchange
and energy. It will promote the idea that innovation can come from many places. Integrating activities with existing business resources
provides more support for business growth and retention within New Albany.
Initiative 4.1: Assess the Innovation Ecosystem.
Initiative 4.2: Increase Recognition of Entrepreneurs and Innovation and Promote Retention in New Albany.
Initiative 4.3: Add New Pathways to Entrepreneurship.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
CONTENTS
CHAPTER 1: INTRODUCTION TO THE PLAN ............................................................................................................................... 1
CHAPTER 2: ECONOMIC BASELINE ANALYSIS ........................................................................................................................... 4
CHAPTER 3: ECONOMIC DRIVERS INVENTORY ....................................................................................................................... 37
CHAPTER 4: INDUSTRY CLUSTER ANALYSIS ............................................................................................................................. 54
Information Technology and Mission Critical .................................................................................................. 60
Corporate Office and R&D ...................................................................................................................................... 67
High Tech Manufacturing And Logistics ............................................................................................................ 75
International Personal Care and Beauty Campus ........................................................................................... 83
Emerging Cluster: Healthcare Services Delivery .............................................................................................. 83
CHAPTER 5: ACTION MATRIX .......................................................................................................................................................... 96
METHODOLOGY AND DATA SOURCES ................................................................................................................................... 115
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
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CHAPTER 1: INTRODUCTION TO THE PLAN
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
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In early 2020, the City of New Albany began an economic development planning process that focused on the identification of key opportunities to
expand and diversify the city’s economy. This process served to update the city’s 2006 Economic Development Plan, which was developed in
partnership with Camoin 310 to serve as a framework and a guide for economic development activity.
Since the completion of the 2006 plan, the City of New Albany has continued to be a place where businesses and individuals want to locate, through
strategies of managed growth, business attraction and business expansion. Central to the economic success of the city has been the New Albany
International Business Park, which today is anchored by five major industry clusters and represents nearly 11 million square feet, over $4 billion in
private investment, and more than 15,000 employees.
This economic development plan update process began with economic and demographic data analysis to understand New Albany in its regional
context and included stakeholder interviews, a review of the city’s economic drivers, cluster research, and regular communication with New
Albany’s economic development team.
This Economic Development Plan builds its Action Matrix for New Albany from comprehensive economic, demographic, and business research, paired
with interviews, roundtable discussions, and working group sessions with the city’s economic development team and Community Improvement
Corporation. The city’s economic development team already engages in nationally-recognized good practices, and others were evaluated and
integrated where they fit with the community’s character and vision. Camoin 310’s research, findings, and proposed strategies and initiatives were
thoroughly reviewed by the city’s team, and the final report reflects their insight and deep commitment to the City of New Albany.
There are four components to this report.
1. The Economic Baseline Analysis provides an understanding of the foundation of New
Albany’s growth, its position as a competitive location for major industries, and the regional
workforce that powers its economy. A notable conclusion is that the city and region have a
stable to slightly growing manufacturing base, when many regions throughout the nation are
seeing that sector shrink.
2. The Economic Drivers Inventory outlines the community factors that play a role in supporting
or deterring growth, blending an understanding of why these factors are important generally
with how they specifically contribute to New Albany’s past successes. The municipal
broadband infrastructure has been essential, and will continue to be a major resource for
businesses. The Inventory begins the transition to strategy development by showing how
current activities and resources promote competitiveness and suggesting what new actions
could build on them.
3. The Industry Cluster Analysis confirms that the city has been engaging the right mix of
industries for its community and resources, and enjoys a position of strength that will enable
Work on this Economic Development Plan
Update was completed during a period of
economic uncertainty created by the
COVID-19 pandemic and related business
restrictions. Throughout this report trends
related to COVID-19 are acknowledged,
and strategies are developed with the
intent of creating an even more diverse
economy that will continue to be resilient
in the face of inevitable future economic
disruptions.
COVID-19
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
3
it to be more selective in matching business and community character in the future. It highlights competitive trends in current industry
clusters such as information technology and personal care, so the city can continue to help them thrive. The analysis also identifies forward
looking opportunities, in sectors that are emerging from existing strengths in New Albany and the City of Columbus region.
4. The Action Matrix lays out the goals, strategies, and initiatives developed through the research and discussions, and provides a rationale
for why each strategy and initiative will move the city forward. It lists specific initiatives to undertake and timelines, roles for the city and
partners, and anticipated outcomes.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
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CHAPTER 2: ECONOMIC BASELINE ANALYSIS
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
5
ECONOMIC BASELINE ANALYSIS: SOCIOECONOMIC ANALYSIS
Geographies Studied: City of New Albany, Columbus MSA, State of Ohio
The demographics of the City of New Albany are analyzed in a regional
context to provide a baseline for understanding the local economy of the
community. Throughout this section, New Albany’s data is pulled
specifically for the municipality (not the ZIP code).
The Socioeconomic Analysis section of the Economic Baseline Analysis provides a descriptive overview of local and regional demographic
characteristics. Insights gleaned from this analysis are used to frame the subsequent sections and the development of forward-looking
strategies for the city.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
6
DEMOGRAPHIC SUMMARY
New Albany is growing faster
than the surrounding region.
New Albany’s population has
increased by 29% since 2010.
Growth is expected to slow but
continue, adding 1,300
residents, or 12%, by 2024.
With a median age of 40.0 in
2019, New Albany is slightly
older than the Columbus MSA.
Households in New Albany are
larger than in the larger region.
New Albany’s average
household size of 3.12
illustrates its continued appeal
to families.
New Albany’s median
household income of $166,580
in 2019 is more than double
that in the Columbus MSA and
the state.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
7
POPULATION
New Albany’s population has a higher proportion of kids in
the age 5-19 range and adults in the 45-59 range than the
comparison geographies. Mid- and later - career workers
who often have earned skills and experience are more likely
to live in New Albany, while developing workers are more
likely to be drawn from the MSA overall.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
8
HOUSEHOLD INCOME
Household incomes are higher in the City of New Albany than the comparison
geographies. Over 42% of households in New Albany have incomes of $200,000 or
greater. The MSA and state have a greater percentage of households with incomes below
$100,000 than New Albany.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
9
EDUCATIONAL ATTAINMENT
New Albany’s residents are well educated – nearly 40.0% hold at least a Bachelor’s
degree. Over 33.0% have attained some form of a graduate or professional degree. This is
compared to just over 23.0% of people in the MSA and nearly 18.0% of people in the
state possessing a Bachelor’s degree.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
10
RACE AND ETHNICITY
New Albany’s racial
distribution is similar to the
comparison geographies, with
the majority of residents
identifying as white.
A smaller portion of New
Albany’s population identifies
as Black/African American
than the MSA and state, while
a higher portion identifies as
Asian.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
11
COMMUTE PATTERNS
Of New Albany’s workers, the
majority (98%) commute into the
city from other municipalities.
A small portion of New Albany’s
residents who work both live and
work in the city (8.2%), while most
resident workers (91.8%) commute
out of the city to work.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
12
LABOR SHED
Most of New Albany’s workers commute from within 10 to 24 miles to get to work
(48.8%). This is followed by 33.1% of workers who commute less than 10 miles to get to
work. The remainder commute from 25 to 50 miles (7.1%) or greater than 50 miles
(11.0%).
Most of New Albany’s workers commute from west of the city. A sizable portion of
workers commute to New Albany from Columbus (37.2%). Other top cities where New
Albany’s workers live include Newark, Reynoldsburg, Gahanna, and Westerville.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
13
LABOR SHED
1
Source: Federal Reserve Bank of St. Louis. Civilian Labor Force as of April 2020 is 1,068,761. Labor Force as of February 2020 was 1,116,485, the highest recorded.
New Albany’s economy is powered by a regional workforce drawn from the Columbus
metro area and beyond. The Columbus MSA includes nearly 1.1 million workers.
1
PLACE OF RESIDENCE OF NEW ALBANY’S WORKERS, 2017
Source: U.S. Census OnTheMap
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
14
ECONOMIC BASELINE ANALYSIS: INDUSTRY TREND ANALYSIS
Geographies Studied: Columbus MSA
Industry trends in the Columbus MSA are studied to uncover opportunities
for New Albany to leverage regional strengths.
Companies report data under their primary NAICS code. As a result, when analyzing industry trends there can be misalignments between the
industry data and the business functions that are occurring within a geography.
For example, manufacturing is recognized to be a key component to New Albany’s economy. Many large companies, including Abercrombie &
Fitch, have substantial manufacturing facilities within New Albany. Data for many of these companies is reported under Retail Trade, which does
not accurately reflect the operations that are occurring specifically within the city. Therefore, employment in sectors such as Retail Trade is
overstated while employment in Manufacturing is understated. Where relevant, connections between the data and a qualitative understanding
of New Albany’s industry makeup are made.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
15
EMPLOYMENT BY SECTOR, 2-DIGIT NAICS
Based on 2019 employment,
Government is the top sector in the
MSA, accounting for over 16% of jobs.
This includes state and local government
employees and public-school jobs. The
strength of this sector is unsurprising
given the City of Columbus’ location in
the region. This sector is followed by
Health Care and Social Assistance (13%
of jobs), Retail Trade (9% of jobs), and
Accommodation and Food Services (8%
of jobs. Average earnings per job are
nearly $65,000.
Qualitatively, New Albany’s economy
includes large companies with functions
in the Manufacturing, Finance and
Insurance, Management of Companies
and Enterprises, and Information sectors.
Based on regional data, average
earnings per job in these sectors are
higher than the regional average of all
jobs.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
16
NEW ALBANY INTERNATIONAL BUSINESS PARK
The business park is a
driver of jobs for the
region, with more than
15,000 jobs. By
comparison, the City of
New Albany is home to
10,745 residents.
Clusters are encouraged
to grow and share
knowledge in information
technology (data centers)
healthcare,
manufacturing, corporate
office, and beauty and
personal care products
development and
manufacturing.
Companies such as
Discover and
Abercrombie and Fitch
each contribute over
2,000 jobs to the city’s
economy.
BUSINESS PARK OCCUPANTS
CORPORATE OFFICE AND R&D
Abercrombie & Fitch / Aetna / American Regent (Luitpold Pharmaceuticals)
ATG Business Travel Mgt / Bob Evans / Commercial Vehicle Group / Homeside
Financial / iQor / Lane Bryant / Red Roof / State Farm
Insurance / Wallick Communities
PERSONAL CARE AND BEAUTY CAMPUS
Accel / Alene Candles / Amcor / Anomatic / Aromair Fine Fragrance / Axium
Plastics / Bocchi / CCL / KDC|One / Mast Global – Bath & Bodyworks /
Onyx Packaging / Reike Packaging Systems / VeePak
INFORMATION TECHNOLOGY AND MISSION CRITICAL
AEP Data Center / AEP Mission Critical / AEP Transmissions / Amazon Web
Services / Discover Data Center / Facebook Data Center / Enova Data
Center / Nationwide Data Center / PCM / TJX Data Center
HIGH - TECH MANUFACTURING AND LOGISTICS
Abercrombie & Fitch / Accel / Axium Plastics / Bocchi Labs / Exhibitpro /
KDC / Tri-Tech / Magnanni / Mast Global / Bath & Body Works
HEALTHCARE SERVICES DELIVERY
Mount Carmel Surgical Hospital / Central Ohio Surgical Institute / New Albany Health
Campus
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
17
HISTORIC EMPLOYMENT GROWTH BY SECTOR
The Columbus MSA has added nearly 86,000 jobs since 2014 (9%). Transportation and Warehousing and Health Care
and Social Assistance are the top growing sectors by far, adding 17,620 and 17,289 jobs, respectively.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
18
PROJECTED EMPLOYMENT GROWTH BY SECTOR
Before disruptions from the Novel Coronavirus pandemic, the number of jobs in the MSA were projected to increase by
another 5% through 2024, with nearly all industries growing. Projected job losses were minimal, with Retail Trade being
expected to shed the most jobs.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
19
SECTOR CONCENTRATION
The MSA is most concentrated in
Management of Companies and Enterprises,
Transportation and Warehousing, and
Finance and Insurance. This concentration
aligns with New Albany’s industry clusters.
Location Quotient
Location Quotient (LQ) is a measure of industry
concentration, indicating how concentrated a certain
sector is in a given area of study, relative to the nation,
It can reveal what makes a region “unique” in
comparison with the national average. A location
quotient greater than 1 indicates that sector
employment in the study area is more concentrated
than it is at the national level.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
20
SECTOR OUTPUT
*Gross Regional Product (GRP) is the GDP of the MSA. It is the sum of total industry earnings, taxes on production and imports, and profits, less subsidies.
Excluding Government, Finance and Insurance was the biggest contributor to the MSA’s Gross Regional Product (GRP) in 2019 (12.6%). This is
followed by Over the last five years, Finance and Insurance and Transportation and Warehousing saw the biggest dollar value change in GRP
(excluding Government). On a percentage basis, Transportation and Warehousing has the biggest increase - 47% since 2014.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
21
INDUSTRY EMPLOYMENT – 4-DIGIT NAICS
The top industry at the 4-digit NAICS level is Restaurants and Other Eating Places. This is followed by state and local
Education and Hospitals, which comprise the bulk of public employment. Six of the top 20 industries, including
Management of Companies and Enterprises and Insurance Carrier, have earnings in excess of $100,000.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
22
INDUSTRY CONCENTRATION
Nonscheduled Air
Transportation is the top
concentrated industry, with an
LQ of 12.16. This includes
freight and chartered
passenger flights, for example
for executive use. New
Albany’s manufacturers and
corporate headquarters create
demand for this industry.
Warehousing and Storage,
Insurance Carriers, and
Management of Companies
and Enterprises – some of the
top industries by job count –
are also concentrated in the
region.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
23
INDUSTRY JOB CHANGE
Since 2014,
Warehousing and
Storage has added the
most jobs, adding
10,444. This is followed
by General Medical and
Surgical Hospitals
(4,904).
Management of
Companies and
Enterprises has also
continued to grow,
adding 2,409 jobs over
this period.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
24
JOB POSTINGS BY INDUSTRY
In 2019, there were the most job postings in the Administrative and Support and Waste
Management and Remediation industry. Management of Companies and Enterprises had
the least job postings indicating that this sector, which is a jobs driver for the region, has
low turnover.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
25
JOB POSTINGS BY LOCATION
*A “unique” job posting indicates that a job will be filled. It eliminates duplicated
postings, for example because of multiple publication sources or repeated
advertising of the same job because it is not yet filled.
The City of New Albany had the eleventh
highest number of job postings in 2019
among cities in the MSA. Of the
companies with the most job postings*
over that year, two were in New Albany.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
26
INNOVATION – VENTURE CAPITAL INVESTMENT
Venture Capital
Venture capital (VC) investment can
be used as a proxy for innovation
within a geography. Venture capital
investments transform innovation
into economic growth by providing
funding to grow companie
s and
therefore grow the economy.
Since 2014, 10 companies in the City of New
Albany have received VC funding through 14
completed deals. Total capital invested
through these deals is approximately $13.59
million. This represents 4% of the 348 deals
and 1% of the nearly $1.3 billion in investment
in the MSA over this time.
Companies receiving VC funding include:
• Cube4
• Gungenics
• Knox Energy
• Myonexus Therapeutics
• Ohio Crafted Malt House
• Optimized Care Network
• PTS Physicians
• Revolution Experiment
• RoamHR
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
27
INNOVATION – VENTURE CAPITAL INVESTMENT
Over the 2014-2019 period,
five of the 14 VC deals
occurred in the Information
Technology industry.
Companies in the Business
Products and Services Industry
received the most capital
($4.59 million) through VC
deals. This was followed by
the Information Technology
Industry with $4.4 million
raised.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
28
ECONOMIC BASELINE ANALYSIS: WORKFORCE AND SKILLS ANALYSIS
Geographies Studied: Columbus MSA
New Albany’s employers are competing for talent across a regional labor
shed. Therefore, this is analyzed at the regional level.
The purpose of the workforce analysis is to provide a baseline of understanding of New Albany’s regional labor pool. This analysis presents the
information for the labor pool as a whole; more detailed cluster-specific workforce and skills information is included in the Industry Cluster
Analysis section of this report.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
29
OCCUPATIONS BY 2-DIGIT SOC
16% of jobs in the MSA are
Office and Administrative
Support. This is a broad
category of workers in
industries such as finance,
customer service, freight
and delivery, production
support, and healthcare.
This is followed by Sales
and Related Occupations,
which comprise 9% of jobs
in the MSA.
Food Preparation and
Serving as well as
Transportation and
Material Moving
Occupations each make up
8% of the MSA’s jobs.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
30
OCCUPATIONS BY 6-DIGIT SOC
The top occupations in the MSA require minimal experience. These occupations,
including Food Preparation, Laborers, and Retail Salespersons, do not require work
experience and very few require a high school diploma. Registered Nurses is the only top
occupation in the MSA requiring a Bachelor’s degree.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
31
TOP POSTED OCCUPATIONS
Most 2019 job postings in the Columbus MSA were recruiting for
Heavy and Tractor-Trailer Truck Drivers and Registered Nurses.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
32
TOP POSTED JOB TITLES
Truck Drivers were
the top posted roles
in 2019 by far, with
over twice as many
more unique
postings than
Commercial Driver’s
License (CDL) Drivers
and Customer
Service
Representatives, the
next two most
popular roles.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
33
EDUCATION AND SKILL REQUIREMENTS
Where specified, an
Associates’ degree is the
most common
education credential
specified by job
postings, occurring in
22% of postings. Most
job postings (17%)
require 0-1 years of
experience.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
34
IN-DEMAND HARD SKILLS
Selling Techniques and Merchandising appear most frequently in postings for jobs in the MSA. Other
skills being requested most frequently in Columbus MSA job postings include Restaurant Operation,
Auditing, Accounting, and Warehousing.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
35
IN-DEMAND COMMON SKILLS
The common skills most frequently sought by employers in the MSA
include Communications, Management, Customer Service, Sales, and
Leadership.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
36
IN-DEMAND JOB QUALIFICATIONS
A Commercial Driver’s
License (CDL) is the most
common qualification that
appears in job postings.
This appears in more than
eight times the postings
than Licensed Practical
Nurse and Master of
Business Administration
(MBA), the next most
common qualifications.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
37
CHAPTER 3: ECONOMIC DRIVERS INVENTORY
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
38
BUSINESS DEVELOPMENT AND PRIVATE SECTOR INVESTMENTS
New Albany has created an environment that is supportive of businesses. The city has become a place where businesses want to locate and to grow.
In a regional context, private sector investment has been increasing. Gross regional product (GRP), which can be used to illustrate investment, has
increased by 11% in the Columbus MSA’s private sector over the five-year period from 2014-2019.
Within the private sector, the Finance and Insurance sector has experienced the largest dollar value increase in GRP over this five-year period. This is
followed by the Transportation and Warehousing and the Health Care and Social Assistance sectors. Companies like Nationwide and Discover, which
located their data centers in New Albany, contribute to the strong regional GRP of the Finance and Insurance sector and demonstrate the city’s, as
well as the region’s, ability to support multiple functions within a specific industry sector.
The Government sector includes federal and state and local governments, as well as school districts and publicly-owned hospitals.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
39
Looking Ahead
The Industry Cluster Analysis provides detail of the existing major sectors for the City of New Albany as of 2020. Emerging opportunities for the near-
term and longer-term planning for new sectors are recommended based on several factors, including the contribution of the sector, such as
Professional, Scientific, and Technical Services, to the regional GRP. This includes subsectors growing in importance, such as the Logistics component
of Transportation and Warehousing.
NAICS Description
2014 GRP 2019 GRP
2014-2019
Change
2014-2019
% Change
52 Finance and Insurance $12,208,983,852 $15,778,502,635
$3,569,518,783 29%
31 Manufacturing $11,349,834,085 $12,983,614,804
$1,633,780,720 14%
62 Health Care and Social Assistance $8,325,576,790 $10,457,080,410
$2,131,503,620 26%
54 Professional, Scientific, and Technical Services $7,938,122,789 $9,464,646,941
$1,526,524,151 19%
42 Wholesale Trade $7,036,010,584 $8,407,642,100
$1,371,631,516 19%
44 Retail Trade $6,671,684,194 $7,262,440,091
$590,755,896 9%
48 Transportation and Warehousing $4,707,013,116 $6,936,702,918
$2,229,689,802 47%
55 Management of Companies and Enterprises $4,763,938,553 $5,707,974,268
$944,035,715 20%
23 Construction $3,651,587,569 $5,150,661,935
$1,499,074,366 41%
51 Information $4,569,021,389 $4,927,291,670
$358,270,282 8%
56
Administrative and Support and Waste
Management and Remediation Services
$4,040,709,771 $4,807,250,473 $766,540,702 19%
53 Real Estate and Rental and Leasing $3,366,848,803 $4,212,485,802
$845,636,999 25%
72 Accommodation and Food Services $2,740,326,063 $3,532,728,310
$792,402,247 29%
81 Other Services (except Public Administration) $2,108,786,889 $2,603,625,851 $494,838,962 23%
22 Utilities $1,607,805,825 $2,472,053,490
$864,247,665 54%
61 Educational Services $1,143,739,922 $1,217,630,095
$73,890,172 6%
71 Arts, Entertainment, and Recreation $784,263,806 $1,103,548,694
$319,284,888 41%
21 Mining, Quarrying, and Oil and Gas Extraction $776,646,383 $527,731,888
($248,914,495) -32%
11 Agriculture, Forestry, Fishing and Hunting $594,355,481 $498,480,848
($95,874,633) -16%
Source: Emsi
Private Sector GRP, Columbus MSA, 2019, Sorted by Size of Contribution in 2019
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
40
LAND USE, STRATEGIC AND MASTER PLANNING, AND CITY GROWTH
The City of New Albany adopted its first strategic plan in 1996, and has
updated it every five years, using it as a tool to communicate and listen
as well as a strategy for managing growth. The strategic plan
encompasses the entire city, including the Business Park. Engage New
Albany, the 2020 update, is being prepared at the same time as this
Economic Development Plan Update. The original four pillars continue
to inform the city’s vision:
Lifelong Learning
Arts and Culture
Health and Wellness
Environmental Sustainability
A strategic plan prioritizes community needs, provides a direct forum
for residents and businesses to talk with each other as well as with city
leadership and staff. It creates greater certainty for new and existing
businesses, organizations, residents, and service providers such as the
school district. A well designed process will:
♦ Create regular forums where residents and businesses take a role
in creating the community’s future and directing growth;
♦ Provide broad direction and guidelines for those looking to build
or grow in a community, communicating desired goals, values,
and outcomes as well as design and land use. This helps the
builder/developer to “get it right the first time;”
♦ Help to secure funding, such as grants, by demonstrating local
commitment and support for a project; and
♦ Enable a community to say no to growth it does not want, in an
objective, consistent, and defensible manner.
The process can improve communication about how growth is likely
to affect community life, transforming the discussion from abstract
worries to concrete impacts on specific neighborhoods. For example,
reports from the public engagement portion of the Engage New
Albany Plan reflect discussion of very specific concerns and
suggestions, such as improved transportation to bypass the Village
Center for vehicles not stopping. This can be compared with
stakeholders only expressing a generalized concern that traffic on
Route 161 causes local congestion.
ENGAGE NEW ALBANY AND THE STRATEGIC PLAN APPROACH
Plans don’t “sit on a shelf” in New Albany, and are actively used to
guide decisions. The city’s periodic update process is a critical element
for plan success, preventing initiatives from becoming stale as the
community evolves, and bringing in new ideas from residents,
businesses, and advisors. Ten basic principals inform all of the plans:
The Strategic Plan’s Ten Cornerstones
1. A Compelling Environment
2. An Exciting Destination
3. People Take Precedence
4. Connected Community
5. Carefully Considered
6. A Commitment to Quality
7. Recognizable Community
8. Comprehensive Sustainability
9. Collaborate Growth
10. Accessible Participation
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
41
The City of New Albany has developed individual strategies for
geographic areas including the Village Center and the Rose Run
Greenway Corridor. There are also well developed strategies for
specific initiatives and resources such as the bicycle and leisure trails,
parks, and economic and industry growth, which is updated in this
report.
As described in the Community Open House held July 9, 2020,
2
the
current Engage New Albany strategic plan will:
♦ Guide future land use, infrastructure, and development patterns;
♦ Coordinate physical planning needs, goals, and policies;
♦ Guide city policy, allocation of resources, and investment in the
city; and
♦ Establish expectations for community character, site planning,
architecture, and overall quality of development.
CITY GEOGRAPHIC GROWTH
All of the development, both residential and commercial, throughout
the city is directed by careful planning, particularly for water and sewer
infrastructure availability. The city is surrounded by unincorporated
parcels and annexes approximately 100 acres per year through a
regular process that lets the community grow where there is, or will
be, supporting infrastructure. The City of New Albany purchases water
and sewer services through an exclusive long-term master agreement
with the City of Columbus. The boundaries for future water and sewer
2
Slide deck available online at
https://documentcloud.adobe.com/link/track?uri=urn:aaid:scds:US:8a052069
-36a2-40d3-910e-c5786746ce8e#pageNum=3, Accessed 9/21/20
infrastructure growth are determined through this agreement and the
plan, referred to as the Columbus 208 Plan, is approved by the Ohio
EPA.
Supporting infrastructure also includes schools, roads, and fiber-optic
communications. With the formation of the New Albany Community
Authority (NACA), one of the primary funding priorities was to ensure
local public schools would be competitive enough to appeal to the
new businesses considering locating in New Albany, and education
capacity continues to be important to ongoing planning. A history of
NACA and its objectives is provided in more detail below under “The
Business Environment and Economic Development Funding – The
Economic Development Fund.”
As an economic driver, “careful, deliberate planning” is
subtle; its absence is cited as a drag on attracting desired
commercial and residential development more often than
it is celebrated as a reason for business and civic success.
It is, literally, the groundwork that, because it’s in place,
has allowed other factors such as the talented workforce
and innovation assets to be at the forefront.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
42
THE NEW ALBANY COMPANY PARTNERSHIP
The New Albany Company (NACo) provides a competitive advantage
when competing for potential businesses. Success stems from both its
relationship with the city, and its carefully designed master plan.
The NACo is a real estate development company created in the 1980s
to implement a master plan developed by nationally acclaimed land
planners, architects and landscape architects. The goal of the NACo
master plan was to build a unique community unlike typical housing
developments or subdivisions.
To date, the NACo master plan includes approximately 10,000 acres –
of which 75% has been sold and developed. The NACo is a legacy
developer and plays a large role in the philanthropic and civic success
of the community.
NEW ALBANY INTERNATIONAL BUSINESS PARK PLANNING
The Business Park is governed by the city’s strategic plan and includes
an additional layer of master planning guidelines developed by NACo.
The NACo master plan includes specific land use recommendations,
infrastructure placement, transportation access, and is complimentary
with the city’s strategic plans.
Both the city strategic plan and the NACo master plan establish
consistent recommendations and requirements for design criteria for
commercial and residential uses and for common facilities such as
signs, lighting, and recreational trails. The recommendations in both
the city strategic plan and the NACo master plan are consistent
throughout the community, resulting in a high quality and unique
environment for commercial and industrial development. The core
3
See the Economic Baseline, “New Albany’s Business Park” above for details.
community attributes are consistent throughout and knit the
community together.
The Business Park’s detailed level of planning is a major competitive
advantage when working with potential businesses because it can
shorten the time from first look by a business to operation in a finished
building. The New Albany Company remains the majority landowner,
although it does not own 100% of the ground available for
development.
Six Fortune 500 companies are located in the Business Park, and
together with other companies (including some suppliers) provided
approximately 15,707 jobs in 2019.
3
New Albany continues to attract
new businesses, and parcels remain available.
Business Park Master Plan
Core Community Attributes
♦ Pedestrian-friendly
♦ Connectivity
♦ Mixed use and diversity
♦ Versatile residential choices
♦ Quality architecture
♦ Traditional neighborhoods
♦ Sustainability
♦
Quality of life
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
43
THE BUSINESS ENVIRONMENT AND ECONOMIC DEVELOPMENT FUNDING
This economic driver is not just what a community does, but how its
activities are perceived. The experience of working with a municipality
through a complex transaction is at least as important as any financial
incentives being offered. How existing businesses are treated is a good
predictor of what a new business can expect over the long term.
This section of the Economic Drivers Inventory is not intended to be a
comprehensive survey of actions and services, but highlights activities
and values that make New Albany stand out and succeed.
WORKING WITH THE CITY OF NEW ALBANY
The city’s Strategic Marketing Plan, updated in the late fall of 2019,
included interviews with corporate executives and site selection
consultants that had/have experience in New Albany. That act of
reaching out proactively as part of strategy development is a hallmark
of New Albany’s approach to economic development. Aspects of
working with City of New Albany have become important economic
drivers because they create goodwill and show understanding of the
priorities of business leaders, include:
♦ A collaborative location and investment process
♦ Sophisticated local partners
♦ Quick, streamlined processes
♦ Joining a diverse mix of industries
The city regularly responds to inquiries from site selection consultants,
and monitors its economic drivers to ensure that competitive assets,
such as the Innovate New Albany entrepreneurship incubator, are
available.
In 2018 and 2019, the city received an average of 70 inquiries per year,
and responded to an average of 21. Most of the site selection inquiries
are generated by the state’s economic development organization,
JobsOhio, and the regional economic development organization One
Columbus.
NACA AND THE ECONOMIC DEVELOPMENT FUND
NACA Formation and Purpose
In 1992, the New Albany Community Authority (NACA) was founded
to fund public education and infrastructure investments that would
catalyze both residential and commercial development in the
community. The NACA is governed by a Board of Trustees comprised
of public and private members.
The NACA is authorized to collect a Community Development Charge
(CDC) on parcels within the New Albany Plain Local School District and
parcels annexed to either the City of New Albany or the City of
Columbus. Improvements to the schools were financed with thirty (30)
year bonds paid back through the CDC. The CDC charge expires when
the bonds are retired. As more businesses locate in the park, the CDC
rate has been reduced because the cost repaying the bonds is shared
by more companies.
In 1998, the City of New Albany used the NACA to finance the
construction of water, sewer and road infrastructure to create shovel-
ready sites within the nascent Business Park. The New Albany
Company pledged a letter of credit to support the city’s financing. The
city agreed to pledge 30% of collected income within the Business
Park to the NACA to repay the infrastructure debt service. The
agreement further provided any excess revenue beyond the debt
service payment (up to $750,000 annually) be deposited into a
separate fund for future economic development projects within the
Business Park.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
44
The excess revenue collected by NACA and not required for
infrastructure debt service became the Economic Development Fund.
NACA expends Economic Development Fund monies as directed by
the city.
Economic Development Fund
The Economic Development Fund is used to ensure the
competitiveness of the city in attracting, growing, and retaining
businesses. Use of Economic Development Fund monies is
geographically limited to activities within the Business Park that
support ongoing economic development related priorities and
initiatives:
♦ Infrastructure, such as water and sewer for expansion and the fiber
optic network, and also transportation initiatives such as
SmartRide New Albany, which coordinates with the Central Ohio
Transit Authority (COTA)to bring workers from around the region
to the Business Park;
♦ Contractual professional services, such as marketing, strategic
planning, and other economic development goals;
♦ Entrepreneurship and business success, such as the Innovate New
Albany incubator and services; and
♦ Direct incentives, such as tax abatements, on a case by case basis
to encourage private investment.
Additional Support
A municipal New Community Authority was formed in the portion of
the city located in Licking County. The NAECA is authorized to collect
a CDC which is not tied to specific projects or debt. The NAECA is
governed by a Board of Trustees and expends funds at the direction
of the city.
A separate Community Improvement Corporation (CIC), was created
to promote specific economic development related purposes of the
city.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
45
BUSINESS INVESTMENT INCENTIVES
City Approach to Incentives
The city currently offers incentives that are flexible, results-based, and
tailored to the needs of specific industries. At the core is the concept
that businesses can and should make a measurable contribution to the
community, through tax revenue, jobs, and capital investment. The city
regularly reviews the performance of each incentive package for
compliance with these requirements. Clawback provisions hold
recipients responsible for adhering to promised investment.
Tax abatements are the most important financial incentive, as they are
in many municipalities throughout Ohio. Abatement calculations use
a benchmark target revenue per square foot of development, instead
of a “percent tax reduction” that is common in many communities
nationwide.
4
This creates a more productive beginning to the creation of a financial
incentives package because the city has calculated up front what its
revenue needs are, and has set an objective goal to achieve them. The
discussion is reframed away from “giving a break” to a company,
toward ensuring that community fiscal goals can be met while still
inducing new investment.
Additional available incentives include tax credits for job creation and
adhering to green building practices, infrastructure loans and grants,
and workforce development and training web resources and grants, as
well as abatements of real property taxes. The city publishes details of
its own incentives and links to regional and state resources.
4
Often state law prescribes the form of tax reduction, limiting community
ability to innovate and negotiate.
Demand Drivers for Financial Assistance
Economic disruptions often increase demand for direct financial
assistance. The nature of assistance needed also changes as factors
internal to the city, an industry, and the regional and national economy
occur. Local assistance can be integrated with state and federal
support programs, potentially making the customization of a package
more complex and heightening the importance of sound decision-
making in awarding such assistance.
This is an area where the city is a national leader in good practices. A
targeted discussion of incentive goals and demand was held with city
economic development staff as part of this Economic Development
Plan Update. Initiative 1.2, in the Action Matrix below, was designed to
develop a framework to help the city continue make good decisions
and preserve its existing flexibility and business accountability.
New Albany’s Investment Incentives
New Albany has been successful at positioning itself as a
business-friendly city, thoughtfully applying economic
incentives that balance the city’s revenue needs with the
provision of targeted, meaningful assistance to business.
The most powerful tool the city uses is abatement of
real property taxes through the Community
Reinvestment Area (CRA) Program
CRA incentives include the Ohio Community Reinvestment
Area Program, New Albany Job Creation Tax Credit
Program, New Albany Green Building Incentive Program,
Infrastructure Loans and Grants, and Workforce
Development and Training.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
46
BUSINESS RETENTION AND EXPANSION
A major focus over the past several years has been attracting new
businesses and fostering expansion. Business Expansion and Retention
(BR&E) already play a crucial role in sustaining existing companies as
well as generating leads for new projects and gathering business
intelligence to inform attraction efforts.
Current BR&E activities are largely undertaken informally through
connections in the community, taking advantage of relationships
developed through casual interactions at businesses in the Village
Center as well as direct discussions. The city is accomplishing major
tasks of a BR&E program by meeting regularly with all of the
businesses in the Business Park and bringing regional and state
partners to the table when appropriate. Much of the city’s growth over
the last five years has come from expansions, in large part attributable
to staying active with businesses on a regular basis.
New Albany is attentive, but the process and intelligence gathering
has not yet been fully planned or formalized. The next step is to create
a system that continues good practices, identifies service gaps, and
reaches more companies. A strategy to formalize BR&E to maximize
the outcomes of the city’s efforts was an initial goal of this Economic
Plan Update and the subject of a direct information and idea exchange
meeting with the city. The initiatives and tasks in Strategy 3, “Upgrade
to a Smart, Data Driven BR&E Program” resulted from this targeted
discussion.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
47
INNOVATION AND ENTREPRENEURSHIP ASSETS
INNOVATION TRENDS
New Albany has been successful at attracting large
companies to establish operations within the city. New
Albany’s business park is filled with national names such
as Abercrombie & Fitch, Amazon, and Facebook among
others, all of which contribute substantial amounts of
jobs to the economy. That being said, trends in the
regional economy illustrate that smaller companies are
also contributors to the economy and should not be
overlooked.
Regionally, most businesses in the Columbus MSA are
categorized as “small” businesses, with 66.7% of
businesses falling into this category. For this analysis,
small businesses are defined as having two to nine
employees. This is followed by small-medium sized
companies (10-99 employees) with 19.2% of businesses.
Mid-size businesses with 100-499 employees make up
only 1.4% of establishments while large companies with
500+ employees represent 0.2% of companies. The
distribution of establishments by size has remained
relatively consistent since 2005.
At the same time, small-medium size companies are the
largest contributor to jobs in the Columbus MSA. These
companies account for 35.3% of total jobs. This is
followed by large companies, with 23.3% of total jobs.
Notably, the portion of jobs attributed to small
companies has increased nearly 4% since 2005, while
mid-size and large companies’ portion of total jobs has
declined.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
48
In addition to measuring jobs by establishment size, venture
capital investment can be used as a proxy for innovation in
measuring the extent to which entrepreneurial ecosystems exist
within a geography. Venture capital investments transform
innovation into economic growth by providing funding to grow
companies, and therefore grow the economy.
Between 2014 and 2019, 14 venture capital deals were completed
in the City of New Albany, representing $13.59 million in
investment in companies in the city. This activity accounts for 4%
of venture capital deals in the MSA and 1% of venture capital
investment. Nearly $1.3 billion was invested in regional companies
through venture capital transactions during this period - a level of
investment which indicates that there is the potential for New
Albany to capture more of this activity.
To put this in context, New Albany’s 10,745 residents comprise
0.5% of the population of the Columbus MSA, which is 2.1 million
5
.
The rate of VC investment in the city greatly outstrips its size, with
twice as much investment per capita as in the MSA, or $1,264.77
per capita compared with $629.95.
5
Source: Esri. See the Economic Baseline, p. 7 for a demographic summary.
New Albany
Columbus MSA
Population 10,745 2,019,197
VC Invested ($m)
$13.59 $1,271.99
VC Investment Per Capita ($) $1,264.77 $629.95
Sources: Esri, Pitchbook
VC Per Capita, New Albany and the Columbus MSA
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
49
INNOVATION ECOSYSTEM
Looking Ahead
Better integrating innovation with support for established companies will multiply points of entry for new ideas and businesses, and diversify the
economy. New Albany’s deep bench of management expertise is both a source of expertise and a potential pool of serial entrepreneurs.
Innovate
New
Albany
Rev1
Venutures
Office and
Coworking
Space
New
Albany
TechStart
Expert
Office
Hours
Tiger Talks
Tiger Tales
Tiger
Workshops
New Albany currently sits within a regional
innovation ecosystem. Innovate New Albany, the
city’s incubator for technology startups,
entrepreneurs and small businesses sits at the
center of this ecosystem and connects startups
with the infrastructure (space and utilities),
programming (“Tiger” series), and partnerships
(Rev1 Ventures) they need to be set up for success.
Additional information on these resources can be
found at:
Innovate New Albany:
https://innovatenewalbany.org/about/
Tiger Events:
https://innovatenewalbany.org/events/tiger-
events-means-tiger/
Rev1 Ventures: https://www.rev1ventures.com/
INNOVATION ECOSYSTEM
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
50
SUPPORTING FACTORS
New Albany is a desirable place for businesses to locate and residents to live. There are a variety of supporting factors that contribute to New Albany’s
desirability among both of these groups.
BUSINESSES
♦ New Albany is home to the 5,000-acre New Albany International
Business Park, the largest master-planned business park in Ohio.
Approximately 1,500 acres of this park are still available.
♦ Businesses have access to a diverse regional labor pool from which
to draw workers.
♦ New Albany and the business park are centrally located to ground and
air transportation. The park is adjacent to State Route 161, accessible
from four highway interchanges, 10 minutes from John Glenn
Columbus International airport and 20 minutes from Rickenbacker
International Port Authority (a cargo-dedicated airport). Regionally,
cargo rail is also accessible. CSX and Norfolk Southern, which serve
major Atlantic ports, connect to the Midwest via Chicago, among other
cities.
♦ New Albany is home to a robust and affordable fiber optic network
that provides reliable, high-speed connectivity to businesses.
♦ New Albany has a reputation for taking a collaborative approach to
development and forming supportive partnerships with businesses
to help them meet their needs.
RESIDENTS
♦ Residents of New Albany are afforded an abundance of
regional job opportunities throughout the Columbus metro
area.
♦ Commute times for residents are low. 83.5% of resident
workers travel 24 miles or less to get to work.
6
♦ The Village Center, a pedestrian-friendly center anchors the
city. The library, restaurants, and retail shops are all located in
this vibrant space, which is connected by leisure trails to
neighborhoods and the business park.
♦ Residents have access to a strong school system. The New
Albany-Plain Local School District has continued to receive
high rankings from the state of Ohio. The 200-acre school
campus is filled with amenities, including an 80-acre nature
preserve.
♦ An abundance of leisure trails and parks contribute to a high
quality of life for residents. 600 acres of parkland and 54+
miles of leisure trails are available for residents to use.
6
2017, U.S. Census OnTheMap.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
51
MARKET POSITION: RESIDENTIAL, COMMERCIAL/OFFICE, AND INDUSTRIAL
RESIDENTIAL
New Albany’s housing stock is primarily owner occupied, with a low
percentage of vacant units. As of 2019, nearly 81% of units were owner
occupied, while only 4% of units were vacant. The number of vacant
residential units has declined by 45% since 2010, when vacant units
represented nearly 9% of all units. According to data from Esri, the
total number of housing units in the city has increased by nearly 650
since 2010.
COMMERCIAL/OFFICE
Regionally the office market is characterized by less overall activity
through the second quarter of 2020. Positive absorption levels in the
Columbus market were recorded in Q2, due largely to expansions and
new office completions in suburban submarkets, year-to-date
absorption is significantly down compared to previous years. While
most of this activity occurred in Dublin, OH, this is a positive sign for
New Albany as well. Within the Columbus market, the suburban
submarket has been more robust than the urban, accounting for 92%
of leasing volume in the second quarter of 2020.
7
COVID-19 related economic disruption and a trend towards remote
work are having an impact on New Albany. Office vacancy rates within
7
Columbus Office, Q2 2020 Marketview, CBRE.
the city increased from 4.5% in Q1 to 8.2% in Q2. Though this is a
significant jump, New Albany is in a stronger position than the overall
Columbus market where the vacancy rate is 14.8%. Nearly one year
into the pandemic, worker safety remains the primary factor in remote
work policies. When this is addressed, it is expected that remote work
will continue, but there is no consensus on how extensively it will be
used.
INDUSTRIAL
According to CBRE the regional industrial market is characterized by
positive absorption rates. Q2 2020 was the twentieth consecutive
quarter of positive absorption in the Columbus industrial market.
Manufacturing and bulk warehousing are driving strong leasing
volume in the Columbus market., Developers continue to move
forward with construction work throughout the market area. Within
New Albany specifically, site work on the new warehouse for Alene
Candles continued. This project is 268,156 SF and is expected to
complete in Q3 2020.
8
Following two major waves of COVID-19 related shutdowns and the
high economic costs and job losses that resulted, policymakers
continue to grapple with balancing safety and economic activity. With
many manufacturing and warehousing businesses demonstrating an
ability to adapt to changes in product demand and goods delivery
systems, there is less risk to this market than the office market. Some
sectors are expected to experience growth as a result of shifts in
consumer demand, as noted in the section on businesses in the
Personal Care and Beauty Campus. However, the health of the market
overall will continue to be affected by consumer confidence, which is
affected by views on the prospects for controlling the virus.
8
CBRE.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
52
INFRASTRUCTURE OUTLOOK
New Albany has been successful in generating public and private
partnerships and investment to create technology and shovel-ready
commercial sites that meet the needs of today’s businesses. New
Albany continues to invest in improvements to utility systems that will
allow them to accommodate growth and business expansion.
American Electric Power (AEP) and the Energy Cooperative provide
electric services to New Albany’s companies. Columbia Gas of Ohio,
the largest natural gas utility in the state, provides natural gas to the
city while the city’s water service features two water towers and has
recently expanded its capacity by 2 MGD. There is now a total of 3
MGD with both towers. New Albany has made substantial investment
in adding sewer and water lines to the New Albany International
Business Park. These improvements mean that water sources are dual
feed, so if one water line needs to be turned off for work, another line
will still serve the area.
9
Additionally, a robust and affordable municipal
fiber optic network was developed through a public private
partnership with American Electric Power and managed by WOW!
Business.
Recent success in the attraction of data centers to New Albany
indicates that investment in infrastructure to support these types of
businesses and operations should continue to be a priority. The
9
Sole, Sarah. New Albany Adding Sewer and Water Lines to Business Park.
This Week Community News, 19 Feb. 2019.
10
Phillips, Zachary. Google Starts Construction on $600m Data Center in
Unlikely Burgeoning Tech Hub of New Albany, Ohio. Construction Dive, 7
Nov. 2019.
electrical power infrastructure brought to New Albany by American
Electric Power (AEP) has been critical to attracting data centers to the
city.
10
Companies like Facebook have cited New Albany’s
infrastructure as a deciding factor in site selection.
11
In addition to
attracting tech companies that host their own data centers, like
Google, Facebook, and Amazon, New Albany’s infrastructure is also
attractive to wholesale data center providers. Stack Infrastructure, one
such provider, has announced plans to expand in the city, citing
affordable energy as one of the reasons for selecting this location.
12
Ohio as a whole has emerged as a strong location for data centers.
The state’s central location makes it convenient to exchange data with
big data center clusters in Northern Virginia, Chicago, and New Jersey
and sits at a point along major fiber network routes.
13
New Albany has
found success with this industry. To retain its position as a favorable
location for data centers, it is important to stay up to date on
technology changes and infrastructure needs of these companies.
New Albany’s demonstrated history of public/private partnerships and
investment in infrastructure position it well to compete with the rest
of the state to attract and retain this cluster. Additional information
regarding this cluster and New Albany’s ability to attract data centers
can be found in the later Industry Cluster Analysis section.
11
Facebook Opens New Data Center in New Albany, Ohio. DataCenterNews,
12 Feb. 2020.
12
Sverdlik, Yevgeniy. Stack Buys Real Estate in Ballooning Ohio Hyperscale
Data Center Cluster. DataCenter Knowledge, 17 Oct. 2019.
13
Sverdlik, Yevgeniy. Stack Buys Real Estate in Ballooning Ohio Hyperscale
Data Center Cluster. DataCenter Knowledge, 17 Oct. 2019.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
53
WORKFORCE ASSETS
A community’s workforce assets are a critical component of business
attraction and retention. Worker recruitment, education, and training
are costly business expenses and therefore, the availability of a skilled
labor pool is a strong determinant in business site selection. More
precisely, an alignment of industry needs with both the skills and
needs of resident workers benefits both businesses and the
community and propels a community forward economically.
New Albany has been successful in attracting companies which require
skills that align well with the local and regional workforce. Regional
employers seek skills across a variety of education levels, presenting
opportunities for workers with diverse educational backgrounds
ranging from high school graduate to Master’s degree level. Notably,
there are 60+ colleges and universities within the region, with several
located within a 30-minute drive of the city. These include The Ohio
State University, Denison University, Columbus College of Art &
Design, Capital University, Franklin University, Ohio Dominican
College, and Otterbein College.
While residents of New Albany itself are well educated, with a
significant portion of the population holding Bachelor’s and advanced
degrees, the educational attainment of the Columbus, OH MSA is
distributed across a broader spectrum of education levels. Skills being
sought include selling techniques, merchandising, communications,
management, customer service, and leadership. The regional labor
pool is well suited to a variety of roles, which has supported a number
of large companies in their location of key functions in New Albany,
including customer service, data centers, and management. To
accommodate a regional workforce the Central Ohio Transit Authority
(COTA) and the City of New Albany partnered to bring SmartRide
shuttles to the New Albany International Business Park. SmartRide
New Albany features five scheduled runs between Columbus and New
Albany during the mornings and evenings with shuttles that take
commuters to and from businesses in the business park.
In addition, the quality of life and other benefits afforded by New
Albany have attracted many upper level, management, and executive
level employees to live within the city. This concentration of career
experience and skills amongst residents is unique for a city of New
Albany’s size, and is an attractive asset of readily available skilled labor
and knowledge for companies considering the area.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
54
CHAPTER 4: INDUSTRY CLUSTER ANALYSIS
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
55
WORKFORCE TRENDS AFFECTING NEW ALBANY’S CLUSTERS
The large, skilled workforce of the Columbus MSA is a major asset for New Albany, and the city has proactively increased access by its employers to
this workforce through its Smartride program. A regional Workforce and Skills Analysis is part of the Economic Baseline Analysis and can be found
above beginning on page 30.
The cluster analysis opens with workforce because it continues to be one of the most important factors when employers make decisions about where
to locate, and where to expand. An analysis of industry specific workforce needs and New Albany and Columbus MSA assets is provided for each
industry sector. Before individual industries are presented, two workforce trends that will affect New Albany businesses in the near- and long-term
are discussed. These trends include the ongoing skills vs credential debate and the increase in remote work.
SKILLS VS. CREDENTIALS DEBATE
The difference between skills and credentials has been increasingly clarified as historically low unemployment nationwide and worker shortages in
some regions revealed the downsides of a skill building system that had become very focused on four-year-college attainment as an indicator of
worker value. The cost of formal four- or even two-year academic programs, including lost work time, poses the question of what is genuinely needed
to become work-ready for different jobs. Cost / wage increase to the worker must be in balance, and factors that tip it one way or the other will
affect the labor pool for employers. While college graduates generally earn more than those who completed only high school, college costs have
been outstripping wage increases for decades. Compared with 1987 costs, 2016 costs at a public university increased 183% while early career salaries
increased by 3% and minimum wage by 20%.
14
Resiliency is increased when the workforce can access cost-effective learning and training even during periods of recession or economic uncertainty.
Reconnecting displaced and demoralized workers, expanding workforce in areas with low to no population growth, and creating opportunities for a
broader group of potential workers was gaining attention as an economic development goal as companies sought to fill vacancies or new jobs. Skills
certificates and other shorter term, less costly training sources, especially in manufacturing and trades, have been increasingly welcomed by
employers and indicate a shift away from classroom-based credentials to work-based learning. Since 2018 the U.S. Department of Labor expanded
its support for apprenticeships as well and broadened the eligible job types.
15
The skills vs. credentials debate is essentially about where a company finds employees, and what can be demanded while still filling jobs. Economic
disruption and change will heighten the debate, whether from external factors such as a public health crisis that sidelines workers and closes schools,
a technological advancement that replaces human workers, or a new service that requires human interaction.
14
Adjusted for inflation. www.marketwatch.com/graphics/college-debt-now-and-then, Accessed 9/10/20.
15
www.apprenticeship.gov, Accessed 9/10/20.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
56
REMOTE WORK TRENDS
Within the United States, remote work has been growing as a competitive advantage for companies when attracting and retaining employees for
whom the standard 40-hour per week on-site job became too challenging. Family scheduling conflicts and long commutes to reach affordable
communities can be mitigated by the telecommuting enabled by faster computers, broadband communications, and new software tools for
collaboration from any location.
The years leading up to 2020 saw multiple experiments in all-remote and partial-remote jobs and workplaces, sometimes with the same company
switching back and forth to find the right approach. New businesses developed to meet the needs of workers without designated offices, such as
co-working spaces and concierge services such as phone answering and mailing addresses for senior professionals and very small companies.
Software developers moved quickly to create conference and connection platforms for professionals.
Developing and updating employee location strategies is not new, but does come into stronger focus when other business risks like recession
emerge. Work locations for many employees can be disrupted by external and internal factors, and for varying periods of time. Examples include
natural disasters, rapidly rising cost of living that causes employee departures, cost-driven offshoring or relocation to a less expensive state within
the U.S., and technological advances such as automation that change the skill sets needed by businesses.
When the 2020 COVID-19 pandemic began in March of 2020 and proximity to other people was seen as a health risk, the experiment that had
previously been conducted on a smaller scale by companies, regions, or sectors, became akin to a nationwide “double blind” study with participants
suddenly assigned to remote, on-site, and hybrid work locations, with results still being collected and evaluated.
As of this writing, many employees have been working remotely for six months, providing insight about what types of jobs, companies, and individuals
have been successful so far, and what challenges have been identified or are now appearing. It is too early to predict what will happen in a particular
company or community, how decisions will be made, and how they may ripple through the economy. For example, after 6 months of remote work,
JPMorgan traders and salespersons were asked to return to their Manhattan office. Despite successful transaction activity, “Trading floors thrive on
shoptalk, banter, and elaborate technology setups.”
16
Emerging qualitative information suggests that the effects on workers, companies, and communities have been highly individual, and the most
important early lesson may well be for economic development professionals and community leaders to continue to be in close touch with businesses.
Ask, listen, and repeat, as businesses seek solutions tailored to their needs.
While local business intelligence is critical, understanding where the risks are highest for long term job dispersion is important. The industries,
locations, and positions most likely to be making decisions about worker location can be estimated. Just as the risk of automation has been evaluated
by industry and job, remote work is now being studied as a potential risk to communities and business. Economic data provider Chmura recently
published a data-oriented analysis of occupations that are more or less likely to be conducted remotely.
16
“JPMorgan Top Brass Tell Trading-Floor Staff to Come Back to the Office,” Wall Street Journal, 9/10/20.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
57
According to Chmura, about 12% of all U.S.
employment can be classified as remote job
occupations. 26% of occupations are partial-remote
occupations while 62% are non-remote
occupations.
17
The map to the right displays all the MSAs in the
United States by Chmura’s Remote Work Index. The
index compares the mix of remote-work
employment in the region versus the average in the
nation. An index of 100 means the region has the
exact same mix as the nation. The Columbus MSA’s
index of 106.58 means that the region has 6.58%
more remote jobs than average for a region of its
size.
While the impacts of remote work will not be fully
realized until the economy moves out of the COVID-
19 phase, baseline data suggests that nationally,
higher education will be a strong pathway to remote
jobs. 87% of remote work jobs typically require at
least a two-year degree, compared to 35% of all jobs
requiring this education level.
18
17
Note that these classifications were created pre-COVID-19. During COVID-19, occupations that were not previously considered to be remote roles (such as
school teachers) wound up being performed remotely. Classifications are considered to be an average of an occupation, and can be used for baseline and trend
analysis. Source: Chmura.
18
Chmura.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
58
How do these trends impact New Albany?
Remote Work
Within New Albany’s existing industries, there is overlap in some of the top occupations (in terms of number of jobs) between clusters. The following
table displays the occupations that are significant job contributors to more than one of the city’s existing clusters. Of these thirteen occupations only
customer service representatives is categorized
19
as a non-remote work role. Given the Columbus MSA’s Remote Work Index value and the prevalence
of remote work ability across clusters, it will be important for New Albany to continue to communicate regularly with businesses to stay informed on
their work arrangement plans.
19
Remote work ability classifications are for the occupations on average; not every single job that falls within an occupation will necessarily be the same. For
example, while software developers are categorized as a remote occupation, this does not imply that every single software developer position can be performed
fully remotely; rather this means that, on average, software developer jobs can be performed remotely. Not every job will fall in line with the overall occupation
category designation. Source: Chmura
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
59
Skill Gaps
Across clusters there are differences between the skills that employers seek and those possessed by job seekers. Hard skills in particular appear much
more frequently in job postings for occupations within New Albany’s clusters than they do in job applicant profiles. The table below displays the five
hard skills and the five common skills that appear most frequently in job postings in the Columbus MSA for each cluster. Also displayed is the percent
of job applicant profiles that the skills are listed in.
Red highlights indicate those skills and clusters for which the skill appears more frequently in job postings than in job applicant profiles. In such
cases there is a probable mismatch between the skills desired by employers and those held by job applicants.
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INFORMATION TECHNOLOGY AND MISSION CRITICAL
NATIONAL INDUSTRY OVERVIEW
This industry provides infrastructure used for a variety of information
technology-related activities, ranging from web hosting to automated data
entry services to data storage. Within this industry some larger technology
companies foster their own substantial IT teams to build and support these
processes in-house. Smaller companies generally outsource these functions to specific
providers or lease equipment space within professionally managed multi-tenant data centers.
Both of these uses have been growing rapidly in the United States for several years, and the
trend of managing data in the cloud rather than on proprietary servers will continue to drive
demand.
New Albany’s current data centers are company-specific rather than multi-tenant.
Additional growth in the city in this sector is likely to come at least in part from co-location of data centers or mission critical facilities with
corporate headquarters and regional offices.
CLUSTER FACTS AND NEW ALBANY COMPETITIVE FACTORS
American Electric Power (AEP) has been a catalyst for development in the Business Park overall, and a foundational business in this cluster. Availability
of cost-effective electricity has made New Albany a highly competitive location for data centers, which continue to locate and expand in the Park.
AEP itself is a major presence, with its own data center, transmission operations, and a mission critical software unit that gives the cluster its name.
While this is one cluster because of a shared demand for technology and communication resources, company purpose and workforce requirements
do differ. AEP’s mission critical transmission activities require high levels of formal education and nearly 1,400 workers, while data centers may employ
only a few dozen per facility but have similar qualification levels. New Albany is also competitive in this sector because it supplies major business
needs:
Competitive Factor
New Albany Asset for this Sector
♦ Cost effective, reliable electricity
♦ AEP transmission network
♦
Fiber broadband
♦
Municipal fiber optic network, plus third party fiber
♦
Talent pool
♦
Ability to bring in workers from throughout Columbus MSA
♦
Capital investment incentives
♦
Real property tax, Green Building, Job Creation Tax Credits
♦
Community acceptance
♦
Suitable sites
Cluster Facts
♦ Mission critical is AEP.
♦ Data centers companies include Amazon
Web Services, Facebook, Google,
Discover, Nationwide, TJX, Motorists, and
AEP.
♦ 3,107,000 SF of space.
♦ $3.3 billion initial investment since 2008,
including expansions.
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♦ Machinery and equipment tax relief
♦ Tax reduction through State of Ohio
♦
Geological and weather stability
♦
Region less subject to severe storms and earthquakes
Finally, businesses with mission critical and data center needs frequently conduct national searches for new locations. Support for the sector from
the State of Ohio is very important. New Albany itself has maintained a high profile in this sector through its business attraction efforts and growing
portfolio of successful companies.
INDUSTRY OUTLOOK
This industry is within its growth stage and has demonstrated the potential to continue, as it is a critical element to the success of other businesses.
It serves multiple sectors, giving it a relatively stable customer base. Technology has progressed and today’s businesses need to store an increasing
amount of data. New products, such as cloud computing, continue to benefit industry operators.
GROWTH FACTORS
♦ An increase in the percentage of corporate services conducted online necessitates greater data use, increasing demand for industry services.
♦ An increase in the number of mobile internet connections means that demand for the services that use these connections will continue to
increase.
♦ Large companies, even those with internal IT teams, have found that more resources are required to manage increasing amounts of data.
♦ Continued remote working among many companies may require
increased amount of data storage and cloud computing capabilities and
as a result increase demand for these information technology-related
activities.
♦ Digital companies such as Facebook and Google, and other similar
companies are experiencing an increased demand due to people
spending more time at home. Demand from these industries may help
to drive growth in this industry in the near term, while longer term work
and leisure trends will remain uncertain through 2021 or longer.
SENSITIVITIES
♦ Broad trends affecting multiple industries, such as recessions, decrease
corporate profits and may reduce business spending on services and
technology and therefore demand for both mission critical software
development and data services.
Looking Ahead – Workforce Critical
Global and national economic trends will drive industry
growth and profitability, but workforce is an essential
resource that communities can affect. This industry relies
on an educated
and flexible workforce. This helps
companies adapt to the constant changes in techniques
and equipment capacity. The Columbus region’s large,
highly educated workforce is an asset, and continued
attention should be paid to ensuring talent finds it
attractive to work, and to live, in New Albany.
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♦ Growth in global connectivity has facilitated greater offshoring in part due to lower labor costs. Tempering this trend are data security
concerns, particularly among financial services companies. New Albany businesses Discover, Nationwide, and Motorists are in this sector.
♦ Consolidation is anticipated among the largest providers, particularly those with multiple locations. New Albany’s proprietary data centers
should be less sensitive to this trend.
WORKFORCE ANALYSIS
In the Columbus MSA, the most common occupations in this cluster include Software Developers and Software Quality Assurance Analysts
and Testers; Computer Systems Analysts; and Computer User Support Specialists. The number of IT/data center/mission critical
occupations is increasing in the region; however the rate of growth is projected to be slower than that of the nation.
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Change in Information Technology/Data Center/Mission Critical Occupations
Source: Emsi
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In 2019, there were nearly 11,900 job openings posted
20
for roles in the top occupations
21
present in this cluster. Regionally, the number
of relevant degree completions exceeds the number of annual openings
22
for occupations where some form of higher education is
required by nearly 2,600. This indicates that the educational pipeline within the region could support future growth of this cluster.
Occupations such as Project Management Specialists and Business Operations Specialists, Software Developers and Software Quality
Assurance Analysts and Testers, and Computer Occupations had a surplus of job openings compared to graduates with relevant degrees
within the MSA.
20
Job opening figures are inclusive of all jobs in a specified occupation and are not limited to a specific industry or cluster.
21
Top occupations include those with at least 400 jobs in the Information Technology/Data Center/Mission Critical industries in the Columbus MSA.
22
Annual openings represent openings for the occupation across all industries and are not specific to the given cluster.
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Academic programs that power these occupations include Business Administration and Management, Computer Systems Networking and
Telecommunications, Computer Engineering, Computer and Information Systems Security/Information Assurance, and Operations
Management.
23
The education attainment required for these occupations is varied. At the award level, Bachelor’s degrees are the most common degree
completion among the relevant academic programs (32.9% of completions). This is followed by awards of less than one year (certificate
programs) at 30.2% of completions, and Master’s degrees with 22.5% of completions.
23
Emsi.
Regional Completions by Award Level, Information Technology/Data Center/Mission Critical Occupation Degrees
Source: Emsi
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From a skills perspective, many of the hard skills being sought by employers are not prevalent among job seekers. Agile software
development, for example, is listed as a required skill in 14% of cluster job postings. This skill however appears in only 7% of job seeker
profiles. The same is true for other top employer desired skills including SQL, Java, and JavaScript programming languages, as well as
automation indicating a need to focus workforce development programs around these programming languages to meet this need. In
terms of common skills, communications and problem solving are listed more frequently in job postings than in job seeker profiles.
Management, customer service, and sales however are listed more frequently in job seeker profiles than in job postings.
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CORPORATE OFFICE AND R&D
NATIONAL INDUSTRY OVERVIEW
Corporate Office and R&D as configured in New Albany is
unique and is not a “national” industry sector or cluster.
However, components of business needs do fall generally
into corporate management and office building
management.
Although in different sectors, companies in New Albany’s cluster do manage
the operations of corporations across a variety of industries. Across the
country, major functions may include strategic or organizational planning
and decision-making, as well as establishing and monitoring corporate
governance efforts, policy execution, and management of employees.
Office buildings in New Albany that are leased to more than one tenant are commercial real estate sector businesses, since the building owner must
manage marketing, lease rates and terms, and renovation and maintenance activity. These buildings need access to tenants directly or through
partners in real estate, marketing, and site selection. A common factor is the need for space, and up to date facilities.
CLUSTER FACTS AND NEW ALBANY COMPETITIVE FACTORS
This is New Albany’s largest “cluster” but it differs from others because it is less driven by the benefits of sharing, matching, and learning than clusters
as defined by a particular industry such as Information Technology.
Corporate office and headquarters grew over time, beginning with the arrival of Abercrombie & Fitch, a clothing retailer, followed by insurance giant
Aetna, financial services firm Discover and many other firms, including more recently lodging chain Red Roof Inn. Call centers and regional
headquarters are also considered part of this cluster in New Albany.
New Albany’s fashion retailers also house designers locally rather than relying on talent in New York City or Los Angeles, adding an element of
creativity not always present in a “company headquarters” location. Along with product development at the Beauty Campus this has led to the
inclusion of R&D in the Corporate Office cluster even though its business needs differ. With continued growth and diversification, R&D could reach
the point where it should be handled as its own cluster within the next 2-4 years.
Because these firms are in very different industries, shared factors that group them as a cluster have less to do with the products designed, produced,
and sold than with the services and support required for high-level corporate decisions and management activities. For New Albany, understanding
that C-Suite executives of Fortune 500 companies expect a higher level of responsiveness and partnership from the community, and delivering it,
was as much a competitive factor as suitable land or transportation. Time is a major cost center for an “executive department,” and facilitating
Cluster Facts
♦ Corporate offices of Abercrombie & Fitch, Bob Evans
Food, Red Roof Inn, Discover, and Aetna.
♦ 2,601,786 SF of space.
♦ $560.3 million initial investment since 2008.
♦ 9,042 initial jobs.
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location and expansion with readily available information about the community, a master planned Business Park, efficient site planning and
zoning, and dedicated economic development staff all reduce that cost.
Competitive Factor
New Albany Asset for this Sector
♦ Experienced executives
♦ Nearby major companies
♦ Available space to customize
♦ Rapid decision-to-occupancy for
new business and expansions
♦ Proximity and ease of travel to Columbus, a 20-minute drive
♦ Availability of executive housing and community culture and
quality of life
♦ Business Park vacant land
♦ Pre-zoned sites, site planning, quick permitting process,
partnership with New Albany
♦ Quality of life
♦ Master planned community, strong schools, open space
INDUSTRY OUTLOOK
It is important to note that companies with offices in New Albany grow or decline during different economic environments. For example, demand
for consumer products such as clothing (Abercrombie) and personal care (Mast Global’s Bath & Body Works brand) can respond differently to
consumer spending shifts. Personal care includes hygiene essentials as well as luxury body wash. Agility and the ability to pivot to meet markets such
as online shoppers drove Abercrombie’s online revenue growth of 56% for the second quarter of 2020.
24
Also recently, Red Roof Inn and Bob Evans
(hospitality and food) have downsized. Ascena, which manages nationally branded women’s clothing such as Ann Taylor, Justice, and Catherines filed
for bankruptcy after 5 years of declining sales and net losses.
Differentiating factors important to business stability and growth are the market served, cost sensitivity and how that drives manufacturing location,
and the cost and importance of the R&D cycle to delivering desired products.
Growth factors and sensitivity described below address corporate office and buildings generally, not specific retail, financial, or hospitality sectors.
GROWTH FACTORS
♦ Low inflation, steady job growth, strong consumer spending- overall strong economic factors increase business spending on management
and facilities. Demand is driven by business activity and potential ROI. Profitability depends on efficient operations.
♦ Technology and professional services will continue to drive demand for office space, although the type and size may be affected by
company choices around remote work. Buildings that can be modified or are in particularly attractive communities will fare better.
SENSITIVITIES
♦ For all large companies, the globalization of business- expanding to overseas markets. Multinational corporations are becoming
increasingly common, with an HQ in the US and other offices/branches internationally.
24
“Abercrombie & Fitch shares are soaring as the retailer profits amid online sales boom,” CNBC, 8/27/2020, Accessed online 9/10/20.
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♦ Also for all companies, the pace of technological change and industry disruption requires agility, and responsive decision-making.
ACTUAL TRENDS VS. REPORTING
As of the second quarter of 2020, despite the economic disruption created by the COVID-19 pandemic, development of new office space continues
in the Columbus MSA, both downtown and in surrounding suburbs.
25
Observe actual trends and changes in the use of office space and consider what types of community and business are most affected. For example,
for the past few years demand for office space has been reportedly declining, but suburban areas of major metros have seen growth. For example,
whether creative/innovation-based companies become more likely to re-occupy space than legal services or corporate management.
WORKFORCE ANALYSIS
Within the Columbus MSA region, top occupations
26
in the Corporate Office and R&D industries require a mix of education levels. These range from
Customer Service Representatives and Insurance Sales Agents, which require a high school diploma or equivalent credential, to Software Developers,
Accountants and Auditors, and Computer Systems Analysts, which require at least a Bachelor’s degree. Within the MSA, the number of job openings
in the cluster’s top occupations that require at least some college education exceeded the number of degrees completed within the region just
slightly, by approximately 192. Promisingly, in many occupations for which advanced degrees are required there was a surplus of degree completions
to annual openings. This indicates that there is an educational pipeline that is sufficient to support new growth within this cluster, including giving
employers multiple options. Occupations experiencing a strong education pipeline include General and Operations Managers; Management Analysts;
Computer Systems Analysts; Financial Managers; Financial and Investment Analysts, Financial Risk Specialists, and Financial Specialists; Computer
and Information Systems Managers, Loan Officers, and Insurance Underwriters, all of which have sufficient completions to fill the annual openings.
25
CBRE Columbus Office MarketView Q2 2020, https://www.cbre.us/research-and-reports/Columbus-Office-MarketView-Q2-2020,
26
Top occupations include those with at least 1,000 jobs in the Corporate Office and R&D industries in the Columbus MSA.
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Of the most common education programs required for these occupations, Computer Systems Networking and Telecommunications, Finance,
and Computer and Information Systems Security/Information Assurance have experienced strong increases in degree completions over the
last five years.
Regional Completions by Degree Program, Corporate Office and R&D
Source: Emsi
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Most of these degree completions are at the Bachelor’s degree level (51%). This is followed by Master’s degree awards (19.1% of completions)
and awards of less than one academic year (certificate programs, 18.4% of completions).
The number of jobs in the Corporate Office and R&D cluster’s occupations continues to grow. Growth in these occupations in the regional MSA
significantly outpaces growth in the state of Ohio, indicating that the MSA has the opportunity to continue to capture talent and graduates from the
regional academic programs.
Regional Completions by Award Level, Corporate Office and R&D Occupation Degrees
Source: Emsi
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Change in Corporate Office and R&D Occupations
Source: Emsi
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The skills of job seekers in this cluster are relatively well aligned with the skills being sought by employers. In terms of hard skills, accounting
and auditing appear only slightly more frequently in job postings than they do in applicant profiles. There is a slightly larger gap between
the number of postings that require SQL, agile software development, and selling techniques and the number of applicant profiles that
have these skills, however the difference is not as pronounced as it is in some of the other clusters. On the soft skills side, with the exception
of communications, job applicants possess the top skills listed in Corporate Office and R&D occupation job postings.
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HIGH TECH MANUFACTURING AND LOGISTICS
NATIONAL INDUSTRY OVERVIEW
The manufacturing and logistics cluster is broad, encompassing a variety of operators that are engaged in the transformation of raw
inputs into new products using mechanical, physical or chemical processes. This also includes the assembly of component parts into
new, complex goods. Businesses frequently locate these activities in the same community as corporate headquarters and R&D.
This industry is in the mature stage, with sector products widely accepted. Foreign competition remains the biggest threat to the sector, although
reshoring as countries that previously competed on cost saw input prices such as labor rise, reducing their advantage. The COVID-19 public health
crisis also exposed the vulnerability of critical supply chains for medical and pharmaceutical inputs to international disruptions. This has increased
concern that future disruptions may come from geopolitical or natural disaster events, creating another incentive for manufacturers to review supply
chains for weaknesses that are not within their control.
CLUSTER FACTS AND NEW ALBANY COMPETITIVE FACTORS
New Albany’s manufacturing and logistics cluster spans a variety of industries, including those in the Personal Care and Beauty Campus and Corporate
Office and R&D since manufacturing companies also have major management
presence as well. It links with warehousing/logistics, as moving production
inputs and finished goods requires infrastructure and, increasingly, technology.
For manufacturing, the shared or similar resources that make this a cluster are
manufacturing processes and facilities, matching labor skills, and the potential
for learning about both even when actual production and assembly is offshored
as it is for much of Abercrombie’s clothing. For the latter, the concentration of
corporate headquarters and regional offices also makes this behave as a cluster
rather than separate industry sectors.
The warehousing and logistics elements are integrated because New Albany’s larger companies handle their own facilities and transport
arrangements and don’t generally use third-party providers. This makes the activity less visible statistically, but it is nevertheless highly important to
corporate operations.
Products produced in New Albany include candles, shampoos, body washes, and soaps, and bottles and other packaging. During the public health
crises associated with COVID-19, manufacturers demonstrated flexibility and adaptability by converting quickly to produce health necessities such
as face shields, hand sanitizer, and more soaps and cleansers. In some cases they ramped up production lines and in others changed their lines to
accommodate new products.
Cluster Facts
♦ Companies include Abercrombie & Fitch, Hims/Hers,
Alene Candles, Axium Plastics, Magnanni.
♦ 1,879,150 SF of space.
♦ $61.2 million initial investment.
♦ 837 initial jobs.
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Competitive Factor
New Albany Asset for this Sector
♦ Central location for transportation
♦ Central to Ohio and within a 2-day drive of 2/3 of the U.S. population
♦
International air cargo
♦ Electric, water infrastructure
♦ Capital investment incentives
♦ Large labor force
♦ Relevant training
♦
Rickenbacker International Airport
♦ Municipal fiber communications, capacity to build more water/sewer
♦ Real property tax, Green Building, Job Creation Tax Credits
♦ 1.3 million within 45 miles
♦ Ohio State’s supply chain and logistics program
INDUSTRY OUTLOOK
Manufacturing
In recent years the manufacturing industry has been shaped by trade and technology. As lower-cost production has been driven by other countries,
US manufacturers have responded through technological advancement. Although the value of exports has declined in recent years, the strength of
the US dollar has ensured that international trade remains more important to the performance of the sector than it has historically. This has resulted
in an additional layer of supply chain complexity for manufacturers. Those that are situated well to compete with international competition are
expected to be successful in the coming years.
Additionally, as products become more integrated with connectivity and software, manufacturing processes will likely shift. Greater software focus
in products will likely necessitate shifts in company structure, employment dynamics, and value chains.
Logistics
Logistics finds itself increasingly connected to technology and data management. In the coming years, transportation and logistics companies are
expected to become even more technology oriented. From using machine learning and artificial intelligence techniques to improve routing to
leveraging cloud technology for more flexible business models and scalability the potential for transformation and growth in this industry is
substantial.
The shift toward technology is accompanied by an increasing focus on client-tailored solutions that require greater integration with a client’s business
and access to data on production, inventory, workforce, and other factors in order to optimize transportation. This puts pressure on third-party
logistics operators (3PL) to innovate, to seek long-term client contracts with strong companies, and to find and maintain a workforce that excels in
both technology and client relationship management.
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GROWTH FACTORS
♦ Exports will be a key component of manufacturing revenue growth over the next five years. The trade-weighted index (TWI) which measures
the strength of the US dollar against other major currencies is expected to rise, indicating that the relative cost of US goods increases for
foreign consumers. This represents a potential opportunity for the industry.
♦ Existing automation and safety and sanitation protocols such as those clean rooms give manufacturers, an edge in adapting quickly to keep
workers safe and productive
♦ Technological advancements will drive change in the structure of both manufacturing and transportation and logistics.
♦ For logistics, e-commerce consumer demands for fast delivery and package tracking have been increasing with shifts in retail to shopping
online but seeking experiences and entertainment in person. 20.5% of revenue comes from retail and wholesale markets.
SENSITIVITIES
♦ Companies will cut manufacturing operations, including furloughs, layoffs, or plant closures due to lack of demand.
♦ Rising oil prices increase supply chain and product distribution costs, and manufacturers using petroleum-based materials such as plastics
are also affected.
♦ Meeting growing environmental and worker health and safety requirements can be costly, and location and expansion decisions must also
factor in community acceptance of the facility itself as well as the use of roads for truck transport.
♦ Multiple industries require highly skilled information technology workers, including several already in New Albany, but concerns about
competition among local companies can be mitigated with proactive strategies and tactics.
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LOOKING AHEAD - EMERGING SUBSECTOR IN LOGISTICS INFORMATION TECHNOLOGY
Modern-day logistics differs from warehousing and distribution, and intersects closely with information technology. Information-based logistics
management, an emerging subsector nationwide, does not require co-located warehouse space or increase the traffic in a community. It does
require a skilled workforce with data and information technology expertise, which New Albany has gathered for its Information
Technology/Mission Critical companies. New Albany companies’ experience in corporate management, high-tech manufacturing, and methods of
managing the movement of products and supplies represent an existing core of expertise.
New Albany’s warehousing and logistics is most often undertaken by the manufacturer, but it is not necessarily cost effective for smaller companies
to use this model. 3PL offer integrated supply chain services such as finding resources for, organizing, and managing schedules for warehousing,
forwarding, packing, and transportation arrangement and documentation. 3PL providers enable a company to focus on its core business while still
having its supply chain and end product handled efficiently. The graphic below shows the drivers of success in this industry, revealing the industry
sectors it touches most closely. Not surprisingly, E-commerce sales are a major driver.
Similarly, supply chain management is intersecting with technology to reduce inefficiencies, identify risks and weaknesses, assess outcomes, and
apply information to guide operational decisions.
Source for graphic: IbisWorld Third-Party Logistics Industry Report, February 2020
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WORKFORCE ANALYSIS
High tech manufacturing and logistics cluster jobs are a mix of those that require higher education degrees and those that do not. Of the
top occupations
27
in the cluster, roles such as management analysts, market research analysts, project management specialists and
software developers require at least a Bachelor’s degree. Other occupations, such as customer service representatives and sales
representatives require only a high school diploma or equivalent credential.
Of the occupations in the cluster that require higher education, project management specialists and business operations specialists have the biggest
deficit of regional degree completions to job openings. There are 1,404 annual job openings for these occupations, but only 85 related degree
completions within the Columbus MSA. Of the regional educational institutions, Ohio State University and Franklin University had the most degree
completions relevant to jobs within this cluster in 2019.
28
27
Top occupations include occupations in the cluster that had more than 40 jobs in the Columbus MSA in 2019.
28
Emsi.
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Within the MSA, the City of Columbus had the most job postings in the cluster in 2019. With 1,087 jobs postings in 2019, New Albany had the
fifth most jobs postings for the top occupations in the advanced manufacturing and logistics cluster. The median posting duration of 34 days
for roles in New Albany is on the higher end of cities in the MSA.
The number of jobs within this cluster has grown at a more rapid pace in the MSA than it has in the state. Since 2010, the number of jobs in the
advanced manufacturing and logistics top occupations has increased by 31% in the MSA compared to 28% in the state. Growth in both geographies
is projected to flatten in the coming years.
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Change in High Tech Manufacturing and Logistics Cluster Occupations
Source: Emsi
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Among job applicants, the biggest skill deficits are in agile software development (hard skill) and communications (common skill). 10% of
job postings for top occupations in this cluster require agile software development skills while only 4% of applicants to these occupations
possess this skill. Similarly, 36% of these occupations list communications as a required skill while only 13% of job seekers list this in their
profile.
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INTERNATIONAL PERSONAL CARE AND BEAUTY CAMPUS
NATIONAL INDUSTRY OVERVIEW
Manufacturing of personal care and beauty products as an industry is in the mature stage of its life cycle. Product segments are
well defined, but the number of industry companies is growing. Consumer preferences are driving innovation and demand for
new product lines.
As noted above on page 70 in the Corporate Office and R&D cluster, it is important to note that consumer product company revenue depends on
the end market and grows or declines during different economic environments. This is important enough to the Beauty Campus to repeat here.
Personal care includes hygiene essentials as well as luxury body wash. As part of this study, a representative of KDC One, which supplies Mast Global’s
Bath & Body Works brand, reported that COVID-19 induced demand for sanitation already equaled that expected for holiday shopping season, the
busiest time for production and sales.
CLUSTER FACTS AND NEW ALBANY COMPETITIVE FACTORS
New Albany and the Columbus region are home to a highly-integrated supply
chain hub for this industry, comprised of manufacturing, distribution, and
retail talent. Functions include developing beauty and personal care products,
manufacturing packaging for these products, and distributing the finished
product. Businesses in the region collaborate with each other for ease of
movement through the supply chain.
A section of New Albany’s Business Park, designated as the International
Beauty Campus, houses most of these companies along with a few other
businesses. This industry sector has adopted the most cluster activities such as interaction among innovators and vertical integration of suppliers
with finished product assembly and shipping. According to One Columbus, “The New Albany International Beauty Campus is an on-shoring solution
that maximizes efficiencies and minimizes expenditures. The campus is innovating the personal care and beauty manufacturing process- with
products traveling just 1.9 miles from concept to distribution.” As noted above on page 77, manufacturers in the beauty campus demonstrated the
ability to pivot quickly to ramp up production and new products in response to sudden, unexpected demand.
Competitive factors are shared with Corporate Office and R&D and High-Tech Manufacturing and Logistics. A selection is presented below.
Cluster Facts
♦ Companies include Accel, KDC/One, and Alene Candles.
♦ 2,871,000 SF of space.
♦ $263.7 million initial investment.
♦ 3,177 initial jobs.
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Competitive Factor
New Albany Asset for this Sector
♦ Central location for transportation
♦ Central to Ohio and within a 2-day drive of 2/3 of the U.S. population
♦
International air cargo
♦ Capital investment incentives
♦ Large labor force
♦ Available space to customize
♦
Rickenbacker International Airport
♦ Real property tax, Green Building, Job Creation Tax Credits
♦ 1.3 million within 45 miles
♦ Vacant land in Business Park
♦ Agile, experienced executives
♦ Proximity to Columbus, 20-minute drive away
INDUSTRY OUTLOOK
GROWTH FACTORS
♦ Historical (5-year) trends in consumer confidence and rising disposable
incomes supported the industry over the last few years.
♦ Diversification such as an increasing consumer preference for organic
ingredients and an awareness of innovative products has promoted new
research and development.
♦ Do-it-yourself and self-care trends can catalyze product innovation, as can a new trend to use beauty care as a recreational activity instead
of shopping for goods.
SENSITIVITIES
♦ Just in time inventory and offshore production can make the supply chain vulnerable to external events.
♦ Increasing input costs have contributed to declining profit for industry operators.
♦ Current and projected trends point to declining consumer confidence and decreasing per capita disposable income. Since most industry
goods are considered discretionary, individuals are be less likely to purchase when confidence is low and when they have less ability to spend
on luxury non-essentials. This is part of the sector’s economic life cycle. When consumer spending rises, discretionary purchases increase,
and the ability to respond with new products can capture more of the growth.
♦ Competition within the industry is high. New players continue to enter the industry to take advantage of consumer demand for niche and
luxury products. Additionally, the industry has become more globalized in recent years and operators compete with low-cost imports from
China and Mexico as well as high-end products from France and Italy.
♦ Direct to consumer and e-commerce has not been the largest sales channel for personal care and beauty products
Looking Ahead
The efficient product development enabled by the
Beauty Campus should continue to make it an attractive
location for companies as they respond to changes in
consumer demand.
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WORKFORCE ANALYSIS
The international beauty campus cluster is growing much more rapidly in the Columbus MSA than in the state and the nation. Since 2010,
the number of jobs in occupations related to this cluster increased by 30% in the region, compared to 18% in the state and 20% in the nation.
Change in International Beauty Campus Cluster Occupations
Source: Emsi
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Top occupations
29
in this cluster include laborers and material movers, packers and packagers, and production workers. Of the job postings
for occupations in this cluster, only 16% require a Bachelor’s or a Master’s degree. 31% of job postings require only a high school diploma
or GED. Therefore, it makes sense that the number of annual job openings for these occupations is much higher than the number of
educational completions within the region.
The top hard skills listed in beauty cluster occupation job postings appear more frequently in job postings than in job applicant profiles. Warehousing
for example is listed in 17% of postings but only 5% of profiles. Soft skills are more closely aligned between job postings and applicant profiles.
29
Top occupations include occupations in the cluster that had more than 100 jobs in the Columbus MSA in 2019.
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EMERGING CLUSTER: HEALTHCARE SERVICES DELIVERY
NATIONAL INDUSTRY OVERVIEW
Hospitals and medical facilities play an important role in a community’s quality of life and business landscape, and access to good
medical care is a competitive factor in attracting and retaining both businesses and residents. Industry operators provide surgical and
nonsurgical diagnostic and medical treatment to inpatients and outpatients, including pathology, clinical laboratory, diagnostic X-
ray, and operating room services.
Within the broad healthcare industry, telehealth is becoming increasingly popular. It uses digital technology to deliver health-related services and
information by connecting multiple users in different locations. These services primarily occur between patient and healthcare provider and include
the transmission of diagnoses, exchanging health education, monitoring medical conditions and providing health advice. Doctor to doctor
consultations are also facilitated. Telecommunication methods include the use of electrical devices, such as phones, web cameras, videoconference
systems and the internet.
At the federal level, increasing the use of telehealth has been incentivized for several years. For example, the 2010 Patient Protection and Affordable
Care Act permits physicians to use telehealth to determine the need for home healthcare and in-home medical equipment, and directs the provision
of telehealth services to medically underserved areas.
NEW ALBANY ACTIVITY AND COMPETITIVE FACTORS
Every major metro area has a health services cluster, simply to serve the
community. New Albany is relatively small in terms of residents to have a
growing presence of its own, outside of Columbus. The Business Park plays a
role in that, as does the quality of life in the city that appeals to highly skilled
medical practitioners and administrators as it does to other professionals.
In particular, the healthcare labor force is bolstered by Columbus State
Community College’s health information management program and The Ohio
State University’s data analytics and biomedical informatics programs as well as its College of Medicine. Additionally, the labor market’s concentration
of IT workers in healthcare positions this cluster to easily adapt to telehealth and other new technologies.
A differentiating factor for New Albany is its municipal fiber communication network and the reliable, cost-competitive electricity provided by AEP.
Patient care continues to rely more on technology for diagnostic and therapeutic equipment, and for maintaining and sharing records as patients
visit different providers. This factor has laid the groundwork for the emerging opportunity in telehealth, described below.
Cluster Facts
♦ Companies include the Mount Carmel Surgical Hospital
and the Central Ohio Surgical Institute.
♦ 369,000 SF of space.
♦ $71.5 million initial investment.
♦ 833 initial jobs.
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Competitive Factor
New Albany Asset for this Sector
♦
Trained doctors, nurses, and other direct care providers
♦ IT professionals and innovators
♦
Ohio State College of Medicine, Columbus State Community College
♦ Ohio State University’s data analytics and biomedical informatics programs
♦
Capital investment incentives
♦ Electric and communication infrastructure
♦
Real property tax, Green Building, Job Creation Tax Credits
♦ AEP electric, municipal fiber network
INDUSTRY OUTLOOK
Demand for services provided by this industry has grown over the past five years, as healthcare reform legislation broadened insurance coverage
and lower unemployment resulted in higher disposable income. This industry is in the growth stage, as technology expands the array of services
offered and is increasing capital expenditures.
GROWTH FACTORS
♦ Demand for healthcare continues to increase as federal funding for Medicare and Medicaid continues to rise.
♦ The number of adults aged 65 and over is expected to increase. Demand for healthcare will rise as a result, as this group tends to need more
medical care.
♦ Electronic health records (EHR) will become standard practice as a way to increase efficiency in hospitals.
♦ Greater demand for medical services and a shortage of doctors will drive demand for telehealth services.
♦ Advances in medical technology (ex. wearable devices, digital scans) have created new opportunities for telemedicine.
SENSITIVITIES
♦ Labor is the biggest risk. To remain competitive, hospitals seek skilled professionals which in turn puts pressure on labor costs. Additionally,
nurse and physician shortages have made it hard to recruit qualified personnel, further increasing labor costs.
♦ The number of people with private health insurance is expected to decrease in 2020, leading to less frequent use of healthcare services
♦ EHR pose a hacking risk. As a result, hospitals will need to invest more heavily in IT security software and cybersecurity.
♦ Supply disruptions caused by externalities such as domestic public health crises; suppliers located internationally to reduce costs are also
sensitive to global geopolitical events and national disasters.
EMERGING OPPORTUNITY IN TELEHEALTH
Before COVID-19, telehealth services were already being adopted by the healthcare industry, as states began allowing the practice of medicine to
cross borders. New technological advances and research validating the efficacy of telehealth have strongly driven growth and adoption of these
tools in healthcare.
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Patient-centric rather than facility centric approaches to service delivery identified telehealth as an effective tool to meet some of the needs of an
aging population that will need more medical care, despite a shortage of primary care doctors, limited availability of specialists in many regions, and
increasing healthcare costs. Telehealth also sometimes often considered first as a method of delivery to underserved populations, or to all populations
with greater efficiency.
The provider-centric perspective is equally important for telehealth. For example, practitioners locating to New Albany as accompanying partners
could use the platform to remain productive before, or instead of, finding a facility-based position locally. Dislocations of staff because of workforce
restructuring may also be mitigated.
Telehealth has demonstrated capacity to fill unexpected gaps in traditional care. As part of the COVID-19 pandemic response, public health agencies
have encouraged people to use telehealth services wherever possible, and hospitals and other healthcare providers are finding ways to utilize
telehealth technology. Though this was occurring before the virus outbreak, COVID-19 has increased the pace of adoption of telehealth services and
technologies. As with remote work, the experiment accelerated, early successes.
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WORKFORCE ANALYSIS
Within the region, the top occupations in this cluster include Customer Service Representatives, Home Health and Personal Care Aides,
Office Clerks, Registered Nurses, and Nursing Assistants. The number of healthcare/medical occupations in the Columbus MSA is on the
rise and growing at a faster pace than in the state and nation.
In 2019, there were 1,101 job openings posted for roles in this cluster’s top occupations. Among the other top cities in the MSA where companies
are hiring for similar roles, New Albany’s median posting duration of 36 days was the lengthiest and indicates that it may be more difficult to attract
Change in Healthcare/Medical Cluster Occupations
Source: Emsi
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talent to these roles in New Albany than in other nearby cities. The median posting duration
among other cities ranges from 21 days in Worthington to 29 days in Columbus and 34 days
in Dublin.
As the number of jobs in this cluster increases, it is important to understand if the regional
workforce is equipped to support this growth. Annually, there are over 22,700 job openings
in the cluster’s top occupations.
30
This is compared to regional degree completions relevant
to these occupations of only approximately 8,000. However, of the occupations that require
education beyond a high school diploma, there is a surplus of 1,546 completions to job
openings. With the lengthy job posting data highlighted above and the strong cluster job
growth in the region, job seekers have their choice of position and have the option to choose
jobs outside of New Albany. Job seekers make decisions based on a wide range of factors,
including transportation, proximity to housing, childcare, wages, or any other number of
reasons. Identifying what is most important to job seekers and working with employers to
mitigate any issues within their control will help support the New Albany Healthcare/Medical
cluster.
30
Top occupations include occupations in the cluster that had more than 1,000 jobs in the Columbus MSA in 2019.
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Regional institutions that are producing the most graduates to fill these roles
include Ohio State University, Columbus State Community College, Hondros
College of Nursing, and Central Ohio Technical College.
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From a skills perspective, there is a difference between the hard
skills that employers seek and those that are possessed by job
seekers. Of the top five hard skills sought by employers in this
cluster, the frequency that these skills appear in job postings
exceeds the frequency with which they appear in job candidate
profiles. For example, 23% of postings list nursing skills as a
requirement, but only 12% of job seeker profiles list these skills.
On the soft skills side, employers are faced with a sufficient number
of candidates who possess skills such as customer service,
management, sales, and leadership.
The mismatch in hard skills required and possessed by job seekers
indicates that the region may have difficulty in keeping pace with
the growing demand for talent in this industry. To ease workforce
pressures, a focus should be placed on partnering with educational
institutions to further develop relevant healthcare degree and
certificate programs and market these programs to attract new
students and future workers.
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SOURCES
GENERAL
Donahue, R., Parilla, J., McDearman, B., Rethinking Cluster Initiatives. Metropolitan Policy Program at Brookings, July 2018.
EXISTING CLUSTERS
Boland, B., De Smet, A., Palter, R., and Sanghvi, A. Reimagining the Office and Work Life After COVID-19. McKinsey & Company, 8 June 2020.
Curran, Jack. Industry Report 62211: Hospitals in the US. IBISWorld, March 2020.
Curran, Jack. Industry Report OD5775: Telehealth Services. IBISWorld, Oct. 2019.
Gerstell, E., Marchessou, S., Schmidt, J., and Spagnuolo, M. How COVID-19 Is Changing the World of Beauty. McKinsey & Company, 5 May 2020.
Kirk, Patricia. What’s the Outlook for the U.S. Office Market in the Year Ahead? National Real Estate Investor, 23 Dec. 2019.
Savaskan, Devin. Industry Report 31-33: Manufacturing in the US. IBISWorld, May 2020.
Sverdlik, Yevgeniy. Stack Buys Real Estate in Ballooning Ohio Hyperscale Data Center Cluster. DataCenter Knowledge, 17 Oct. 2019.
POTENTIAL CLUSTERS
Cook, Dan. Industry Report OD5504: Third-Party Logistics. IBISWorld, February 2020.
Robinson, Adam. The State of Logistics Management. Expansion Solutions, 7 Jan. 2020.
Tipping, A. and Kauschke, P. Shifting Patterns: The Future of the Logistics Industry. PWC, 2016.
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CHAPTER 5: ACTION MATRIX
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INTRODUCTION
The City of New Albany Economic Development Plan Update has been developed to help the city pursue opportunities and mitigate challenges
identified through the research and data collection process. Current successful practices form strong foundation for new endeavors and are therefore
also highlighted as essential activities and expanded where advisable.
The Economic Development Plan and Action Matrix strives to reflect the five overarching principals of:
♦ Apply proactive goal setting, activity and outcome planning, partnerships, and organizational techniques to compete for businesses and
maximize the effectiveness of New Albany’s economic development team.
♦ Enhance New Albany’s competitiveness as a location both for residents and for a wider array of business sizes and industries, including
encouraging Main Street and small business that contribute to the community’s quality of life.
♦ Actively promote small business creation, growth, and retention through stronger partnerships in the region’s innovation ecosystem.
♦ Maintain competitiveness for existing industry sectors and remain selective in competing for new companies.
♦ Identify new industry cluster opportunities and continue to be a competitive location for businesses in the targeted sectors.
♦ These initiatives are intended to act as a work plan for the City of New Albany and partner organizations, therefore task status should be reviewed
regularly for progress-to-completion or a need to change course. While these are important goals and objectives right now, the ever-changing
economy, as well as fluctuating state and national priorities, are likely to dictate adjustments to the plan.
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COVID Response: Take Immediate Action to Address COVID Related Impacts
Rationale: The City of New Albany Economic Development Plan Update has been written during a period of immense economic disruption and
upheaval as the COVID-19 pandemic continues to wreak havoc around the world. The economic and public health landscape are changing on a
daily basis and the full impact of the pandemic is yet to be known. The majority of the New Albany Economic Development Plan is future forward
and assumes some level of normalcy will return, however there are critical steps that need to be taken immediately in order to support existing
businesses and build resiliency within the economy.
Take steps to address the needs of existing businesses in New Albany to Build Resiliency
i. Establish a six month intensive BR&E program focused on regular communication with major employers and major office users in New Albany. Continue
to connect on a regular basis with executives to understand their plan for the near and short term, identify any issues they may be struggling with,
and provide support as able. Provide frequent communications to all businesses with updates on resources and role the City of New Albany and
partner organizations are assuming during recovery. Build findings into CRM and use as part of ongoing BR&E program.
ii. Maintain an inventory of resources available to businesses during this time and connect businesses to providers of training and assistance. Navigating
state and federal resources will be key to deploying funds to businesses. Businesses are preoccupied with maintaining operations, and therefore lack
the time to search for resources. The city can assist by communicating what resources are available to businesses, and following up to learn which
have been most useful.
iii. Develop technical assistance for businesses in a post-COVID reality. Preparing guides, technical assistance, and/or other resources to help businesses
with additional safety protocol procedures, customer management, or digital presence will be key to ensuring that existing businesses can adapt to
the after effects of the pandemic. Intelligence from ongoing communication with businesses throughout the crisis will help develop the initial list of
business needs.
Priority: High
Roles for City and Partners: City to lead.
Timeline: Immediate and Ongoing
Outcomes: Businesses retained and supported through COVID crisis.
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Strategy 1: Create a Decision Framework for the City’s Economic Development Activities.
Rationale: Being able to retain current flexibility and the ability to pivot during changing economies and for unique opportunities will build
resilience and strength for the city. With a framework, individual activities and decisions are understood through desired outcomes and priorities
can be set, successes and gaps understood, and decisions made about when to act directly and when to use a partner or hire a specialist.
Initiative 1.1: Identify the Best Role for Economic Development across Different Service Areas.
1.1.A
Conduct a self-
analysis with staff
working
independently and
then meeting as a
group.
i. List goals for economic development activities. For example, increase jobs, grow commercial tax base, retain
existing businesses, participation by small businesses in economic development programs, and others.
ii. List existing activities and match them against the goals identified in a matrix form, noting which activities
promote multiple goals, and which goals are supported by multiple activities.
iii. Note staff skills, qualifications, and capacity needed and resources used.
iv. List existing partners.
v. Identify resources used and typical and desired outcomes of each activity.
vi. Measure the balance of resources and outcomes on a simple scale or a quadrant matrix with low to high
resources and low to high outcome or impact.
vii. Identify imbalances such as activities that don’t deliver outcomes in keeping with the resources used, or
activities that have a strong impact with low/moderate effort. Consider what the outcome might be if the
resources were reduced or increased.
viii. Identify gaps suggested by the list, and activities that should be undertaken that aren’t.
ix. Revisit and update at least annually, and on an interim basis when a new activity is added.
Priority: High
Roles for City and Partners: City to lead. A
consultant may be considered to development
and implement.
Timeline: Near Term
Outcomes: Increased effectiveness for all tasks, clear priorities for the use of resources.
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1.1.B
Establish a process
for managing and
evaluating
relationships with
partner
organizations.
i. Create a list of existing organizations the city regularly engages with for advice or assistance and their tasks and
capabilities. Add them to the analysis of goals and activities begun in 1.1.A, above. View these partners as a
potential “external team.”
ii. Add to this list individuals and organizations who are not currently partners but have a mission or activities that
suggest they could be in the future. These are potential new external team members.
iii. For activities the city chooses not to undertake directly, match needs and outcomes with partner capabilities.
Recruit partners and become comfortable delegating. Establish an internal script: “We do this because… and we
don’t do this because… but we will find a partner.” Focus on the desired outcome and identify the best leader.
iv. Invite a representative from each existing partner organization to review the finished economic development plan
and identify areas where they can assist, lead, or support. Ask for concrete tactics, set deadlines, and follow up.
v. Meet with local and regional partners at least annually to facilitate interaction with each other, increase
collaboration with the city, analyze results, and share challenges and successes. Short brainstorming breakout
sessions may be used to increase engagement and encourage sharing of ideas across specialties.
Priority: High
Roles for City and Partners: City to lead.
Timeline: Near Term
Outcomes: Improved ability to share and delegate tasks, and increased capacity at city to focus on highest
priorities.
Initiative 1.2: Identify Gaps in Financial Incentives and Establish Performance Metrics.
1.2.A
Identify gaps in
financial assistance
by comparing goals
for the city and for
businesses.
This study did not
identify current gaps
in financial incentives.
The city should
prepare to identify
and address potential
future gaps.
i. Create a list of desired outcomes for each current incentive, such as minimum tax revenue, job growth, job
retention, capital investment, or adaptive reuse.
ii. List businesses using incentives by size and sector. Determine whether a targeted type or sector is not
participating, such as small but growing Main Street businesses. Use BR&E to learn whether this is because they are
unaware of incentives or need a different form of support from what is offered.
iii. Evaluate the use of each incentive in practice against the city’s desired outcomes. Consider whether it (a) is
performing as planned and should continue as is (b) doesn’t fit the original intent but is still valuable for other
goals, (c) can be adjusted for better alignment, or (d) should be phased out.
iv. Conduct a short survey at least one year after the award and ask each business how well the incentives performed
for them by supporting their business plan. Ask whether they would use the same tool again or if an adjustment or
different program would work better.
v. Establish a process for determining whether and how to address a possible gap with a new or adjusted incentive.
Criteria should include (a) measurable positive and potential negative outcomes for the city; (b) resources needed
such as staff and funding; (c) availability of expertise at the city or through partners; and (d) how a similar gap was
successfully addressed by another community.
Priority: Medium
Roles for City and Partners: City to lead.
Timeline: Review by end of 2021, update annually
Outcomes: Improved ability to meet business needs and balance with community needs.
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1.2.B
Establish metrics and
regularly evaluate
incentives
quantitatively.
Measuring the outcome of an incentive enables the city to determine what is succeeding and what may need
adjustment so the portfolio of incentives continues to serve the needs of the community and businesses. Sharing
metrics with community leaders and residents builds confidence in the city’s actions and shows benefits such as new
jobs.
i. Select success metrics for incentives overall: new and retained jobs, wage increases, capital investment, increased
commercial tax base, and new income tax revenue generated. Measure cumulatively and on an annual basis.
Capital investment and tax revenue can be calculated per household or per capita as well. Where possible, include
backward-looking information to identify trends.
ii. For each widely-used incentive, implement two or more metrics. For tax abatements, track capital investment, net
new property and income tax revenue, and new jobs by business and in aggregate. Ask the company for the data
and update annually.
iii. Design a dashboard or short report for results and trends to use internally and to and share with key stakeholders
such as elected leaders, CIC, others. Make it visually interesting and update at least annually.
iv.
Begin to incorporate economic and fiscal impact modeling into decision process associated with any large financial
assistance provided. Use this report to calculate the return on investment for the impacted jurisdictions, inform the
decision, and assure the public of the reasonableness of incentive given.
Priority: Medium
Roles for City and Partners: City to lead.
Timeline: Near term, update annually
Outcomes: Improved ability to communicate what role incentives have in community outcome; community
support maintained.
1.2.C
Continue to gather
business intelligence
about how
incentives are used
and perceived.
i. Incorporate questions about incentives into BR&E activities. Listen for gaps in knowledge about what’s available,
particularly among small and Main Street businesses. Be sure to communicate what is available to Main Street and
small businesses during BR&E visits, general communication, and in the press and encourage participation.
ii. Develop partners and resources for Main Street and small businesses that may not traditionally have access to
larger incentive programs or professional business services. Consider partners and local mentors to provide
training and ongoing advice around marketing, human resources, accounting, and more that can enhance Main
Street and small businesses’ ability to remain viable and expand.
iii. Listen for business challenges that could be mitigated with direct incentives not currently offered, or not offered to
that business size or sector. For example, if a small business wishes to expand its capacity but is not making a
capital investment in a new building or renovation, there may be a short term need for funding assistance before
additional revenue is realized.
iv. Identify partners for activities where direct city action is not the most effective choice. When connecting a business
to another resource such as a Small Business Administration loan, follow up on outcomes.
Priority: Medium and Ongoing
Roles for City and Partners: City to lead.
Timeline: With Initiative 3.1 on BR&E
Outcomes: Existing well-tailored incentives maintained and ability to pivot as business needs change increased.
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Initiative 1.3: Assess the City’s Goals for the Innovate New Albany Incubator and Other Innovation Activities.
1.3.A
Formalize the city’s
goals in providing
support for Innovate
New Albany.
i. Internally, list what the city hopes the incubator and ecosystem will achieve and note the importance of each. For
example, new business formation, current business expansion, new capital investment or jobs, maintaining the
city’s regional and national profile.
ii. List which incubator and ecosystem activities directly promote these goals and note what reporting currently exists
to track progress.
iii. Gather data on incubator outcomes such as businesses graduated from the space, businesses retained in the city
or the region, business failures.
iv. For each partner, clearly define and communicate the city’s role and expectations. Maintain regular conversations
on this topic and periodically evaluate whether the city’s role should remain the same, increase, or be adjusted.
Strategy 4, below, provides additional innovation and entrepreneurship activities.
Priority: High
Roles for City and Partners: City to lead.
Timeline: Near term
Outcomes: Clear role for city, justification of resource use.
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Strategy 2: Maintain New Albany’s Leadership as a Competitive Location for Existing and New Businesses.
Rationale: New Albany has successfully attracted and fostered major businesses in several industry clusters. For industry growth and continued
diversification, the next steps are to select additional medium-term targets and review the potential advantages of disaggregating large existing
clusters. Remaining a leader in the region and state for enabling businesses to thrive requires maintaining access to a competitive workforce,
growing the small business sector, and pursuing collaboration.
Initiative 2.1: Promote Continued Expansion and Retention of a Competitive Workforce.
2.1.A
Establish paths for
continuous
information
exchange on worker
skills and training.
i.
List of who in the region is managing workforce related issues and resources and ensure New Albany staff, website,
and collateral is up to date and consistent. Work collaboratively to create informative websites, materials, and
“road shows” to gather and disseminate information to industry and workers.
ii. Incorporate workforce into discussions with employers and seek specific problems or solutions. Transform thinking
from “I just can’t find skilled workers” to “Certified welders stay for 2 years and then get other offers elsewhere.”
iii. Conduct a workforce preparedness analysis to assess the match between training opportunities, hard and soft skills
taught, apprenticeships and on-the-job training, internships, and employer needs in existing clusters and emerging
cluster opportunities. Keep updated and identify gaps and resources most in demand. Note: this can be delegated
to a partner organization or performed by a consultant.
iv. Conduct a survey of HR professionals of issues they face in attracting employees, length of job posting, reasons
applicants state for not applying, and other information that might suggest solutions.
v. Ask partners to assist with a national review of innovative or successful programs that address workforce needs for
New Albany’s industry clusters, existing and emerging.
Priority: High
Roles for City and Partners: City to identify
partners, share/delegate.
Timeline: Near to Mid Term
Outcomes: Continued business confidence in workforce availability.
2.1.B
Encourage
discussion of skills
vs. credentials.
i. Stay up to date on research, and initiate conversations with the economic development community and businesses.
Encourage expansion of concepts into schools, youth leaders and community groups that influence worker choices.
♦ Changing standards and expectations
♦ Changing role of education
♦ Cost of credentials as a barrier to work
♦ Differing needs of mid-career workers and those rejoining the workforce after an absence
Priority: Medium
Roles for City and Partners: City to connect
with local, regional partners who can lead.
Timeline: Long Term, begin information gathering short term
Outcomes: Workforce is prepared for jobs with demanded skills; reduced cost and time barriers to training and
re-skilling.
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2.1.C
Address housing
challenges and
continue to secure
transportation
resources, directly or
with partners.
i. Solicit a regional housing needs assessment that includes workers, families, and professionals. Ohio Housing
Finance Agency annual needs assessments are a good resource for complementary information on housing costs
and burdened populations.
ii. Identify gaps between New Albany’s worker housing needs and cost, availability, and proximity. Identify and reach
out to regional housing service providers and bring them into forums and events.
iii. Include questions and discussions with businesses about transportation related issues for their workers to identify
any improvements to be made.
Priority: Medium
Roles for City and Partners: City to delegate,
monitor.
Timeline: Long term
Outcomes: More workers are residents and contribute locally.
2.1.D
Integrate childcare
into all worker
retention and needs
assessments.
i. Include workforce childcare needs among topics to talk to all businesses about during BR&E.
ii. Segment childcare needs by child age and worker schedule. Identify gaps from the point of view of the worker
such as inability to get care for shift work, before school, during long term school closures.
iii. Identify alternate locations such as vacant office space that can be repurposed for older age groups. Proximity to
business activity can promote student learning about work and entrepreneurship.
iv. Explore funding for childcare worker training and certification.
Priority: Medium
Roles for City and Partners: City to initiate,
delegate to a partner.
Timeline: Begin with BR&E activities in Initiative 3.2
Outcomes: Expanded workforce, reduced employee turnover.
Initiative 2.2: Bring Small Businesses into the Conversation.
2.2.A
Monitor and track
small businesses in
New Albany just as is
done with larger
businesses.
i. Establish unique tags in CRM to allow for tracking of information about sector, number of employees, value,
estimated annual revenues, ownership structure, location and size of facility.
ii. Regularly survey the small business group to learn about their issues, specific support they need, or how they can
be encouraged to stay and expand in New Albany.
iii. Using the survey results, establish a focused small business program providing or enabling access to financial,
technical, networking, group marketing, and other assistance.
Priority: High
Roles for City and Partners: City to lead.
Timeline: Short term, ongoing
Outcomes: Small business growth and stability, economic resiliency.
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2.2.B
Convene group of
small business
owners for
discussion,
collaboration, and
networking.
i. Facilitate, but don’t manage, a twice per year forum of small business owners to discuss workforce, childcare,
supply chains, expansion issues, and other topics that impact small businesses differently from larger ones.
ii. Follow up on issues identified, help bring together the necessary partners to address, and work on finding
solutions to support small businesses.
iii. Include language and metrics about small businesses in annual reporting content to demonstrate role that small
businesses have in creating high quality of place in New Albany.
Priority: Medium
Roles for City and Partners: City to initiate and delegate to
partner.
Timeline: Mid Term
Outcomes: Small business growth and stability, economic resiliency.
Initiative 2.3: Prepare for Continued Growth and Emerging Opportunities in Existing Industry Clusters and
Potential New Industries.
2.3.A
Continue to
encourage growth in
existing clusters and
encourage new
clusters to emerge.
i. Maintain the city’s commitment to support and expand the key competitive assets identified for each industry in
the Cluster Analysis and summarized in the Key Findings of the research overview for this report, including needed
infrastructure.
ii. Talk to current service providers of telecommunications infrastructure about extending fiber to residences and
consider having a study completed by a specialized broadband consultant to determine feasibility.
iii. Continue to discuss supply chain needs with existing businesses and ask about current or expected gaps that could
be met by businesses attracted to New Albany (or the Columbus region) or grown locally.
iv. Keep communicating with site selectors and obtain intelligence by industry sector.
v. Monitor growth in R&D, logistics, and telehealth as emerging subsectors, as discussed in the Cluster Analysis.
Request insight and data from existing companies with these activities, such as job and expenditure breakdowns,
perspectives on growth, and resource gaps.
vi. Monitor contract manufacturing within personal care/ Beauty Campus as a manufacturing subsector, such as
plastics molding. Identify areas of expertise and adaptability, such as the conversion of manufacturing capacity to
respond to increased demand for health necessities.
Priority: Medium to long-term
Roles for City and Partners: City to lead.
Timeline: Ongoing
Outcomes: Business growth, new companies.
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2.3.B
Monitor actual local
activity, not national
trends, about the use
of office space.
i. Observe local trends and changes in the use of office space and consider what types of communities and business
are affected and which are not, and share specific information to counteract national predictions of disruptive
change. For example, suburban office space is being reoccupied in the summer and fall of 2020 at a much more
rapid pace than urban areas, but vacancy in large cities such as New York set the tone for national reporting.
ii. Conduct an analysis of office space needs within the city’s targeted industries once pandemic related impacts have
flattened out to understand future needs, challenges, and opportunities.
iii. Integrate business intelligence from BR&E in New Albany and information gathered for the region by
OneColumbus. Solicit positive views as well as concerns.
iv. Look for local and regional entrepreneurs who are solving problems such as repurposing excess space, redesigning
for safety or multi-user formats, and prepare resources that can be shared.
Note: These activities can be started with a discussion session that includes businesses using office space and with
commercial real estate professionals, with the city, a partner, or a consultant facilitating.
Priority: High
Roles for City and Partners: City to lead.
Timeline: Ongoing
Outcomes: Understand actual potential for change to businesses.
2.3.C
Establish a
framework and plan
to evaluate potential
new clusters.
The Cluster Analysis section of this report identified three industries that perform well in the Columbus region but do
not have a strong presence in New Albany: pharmaceutical manufacturing, finance and insurance, and professional and
scientific services.
i. Conduct or commission a target industry cluster analysis to gain a deeper understanding of each sector’s needs
and the activities the city and partners can undertake to become more competitive regionally.
ii. Continue to discuss supply chain needs with existing businesses and ask about current or expected gaps that could
be met by a new businesses attracted to New Albany (or the Columbus region) or grown locally.
iii. Keep communicating with site selectors and where possible obtain intelligence by industry sector.
See also Initiative 3.2, “Continue to be Selective in Attracting Businesses to New Albany.”
Priority: Medium
Roles for City and Partners: City lead, with OneColumbus,
consultants as active partners.
Timeline: Fall 2020 decide who will conduct analysis, have it completed by end of 2021
Outcomes: City can actively pursue desired industry sectors.
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Strategy 3: Upgrade to a Smart, Data Driven BR&E Program and a Proactive Attraction Program.
Rationale: Business retention and expansion efforts play a crucial role in sustaining existing companies as well as generating leads for new projects
and gathering business intelligence to inform attraction efforts. New Albany is attentive to its existing businesses, but the process and intelligence
gathering has not been fully planned or formalized. The next step is to create a system that continues good practices, identifies service gaps, and
reaches more companies. Building off the success of recent attraction and expansion efforts, New Albany now has the ability to be much more
selective and proactive when it comes to attracting new businesses and investment. New Albany is recognized as a premier place to do business
and should use this position to direct growth in a way that will have the greatest return on investment and most positive impact.
Begin this effort immediately to address impacts of COVID-19 on major employers and property owners.
Initiative 3.1: Establish a More Formalized Business Retention & Expansion Program.
3.1.A
Maintain strong
relationships with all
the businesses through
formal and informal
conversations.
i.
Be the face of all business visitation efforts to demonstrate to businesses that economic development staff are
the go-to team. Continue to participate with partner organizations, but take the lead in communication and
follow up.
ii. Maintain and create personal relationships between the development team and businesses as a result of
ordinary community life, such as visiting local businesses and recreation space.
iii. Identify a designated staff point person for relationships for the near term, and use tools such as a CRM and
regular formal and informal conversations to share information with the entire development team. As resources
permit, add at least one other person to share this function.
iv. Announce via a marketing campaign that the City of New Albany is going to be working hard to improve the
local BR&E and that it will be more data driven. This will let the larger public know about the work being done
on behalf of existing companies as well as give some notice to businesses that the city might be surveying,
asking more specific questions, and taking a less casual approach.
v. Continue to be the go-to for all things New Albany for businesses. Continue to build the trust through casual
conversations, social get-togethers, and informal networking. Use the SalesForce CRM to track who is engaging
in these activities and how, and use that intelligence to plan for future outreach.
Priority: High
Roles for City and Partners: City to lead.
Timeline: Ongoing
Outcomes: Improved business intelligence, service to companies.
3.1.B
Pursue a data-driven
approach to BR&E.
i. Use the SalesForce training modules (Trailhead) to gain better skills and understanding of the tool.
ii. Within the SalesForce CRM, build an information architecture for the BR&E program, to collect data beyond
expansion and on growth trends, to include workforce, supply chain, consumers/customers, finance and funding,
business environment, etc.
iii. Upload results of COVID-19 Survey to CRM to start building baseline data.
iv. Develop a strategy for outreach to businesses. Launch the strategy with a digital survey of all businesses to
populate the information architecture, as well as in-person business visits that allow for deeper connections and
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conversations. To increase response rates, implement a calling campaign to reach more businesses and collect
additional intelligence.
v. Bring a tablet to business visits to fill in the fields during the meeting directly into the CRM. Anytime anyone on
staff interacts with a business, it should be recorded in the CRM in real time.
vi. Conduct regular surveying of businesses through SalesForce apps to gain insights about issues, track input, keep
records updated, identify critical concerns, and potential opportunities.
vii. Analyze business intelligence continuously, over time. Learn from the information and employ it to adapt
policies, programs, and marketing for attraction.
Priority: High
Roles for City and Partners: City to lead.
Timeline: Ongoing
Outcomes: Improved business intelligence, service to companies.
3.1.C
Conduct regular
reporting for internal
and external
audiences.
i.
Establish an annual report that outlines the work completed in the previous year around BR&E. Graphically
present the results of the program: number of connections made, number of jobs retained, number of
businesses, retained, and investment. Supplement the data with short-stories that show how the information
gathered was used to support the business community. Include annual report in future BR&E outreach efforts to
demonstrate value.
ii. Throughout the year collect additional content about networking efforts, consortiums, qualitative/anecdotal
information from industry, etc. Use this is as both an internal (within New Albany) marketing tool as well as for
business attraction efforts.
Priority: High
Roles for City and Partners: City to lead.
Timeline: Ongoing
Outcomes: Improved business intelligence, service to companies.
3.1.D
Conduct a review of
the current list of
businesses in the
community and ensure
a diverse selection
(size and industry) is
receiving regular
communication from
the office.
i. Continue to meet and visit the large and large-medium sized businesses on a regular and more formalized
schedule. Prioritize businesses in the growth stage.
ii. Connect with small-medium sized businesses through targeted emails that have information they will need,
regular surveying with follow-up conducted, or participation in efforts by the Chamber and other organizations
that regularly connect with these companies.
Priority: High
Roles for City and Partners: City to lead.
Timeline: Ongoing
Outcomes: Improved business intelligence, service to companies.
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Initiative 3.2: Continue to be Selective in Attracting Businesses to New Albany.
3.2.A
Identify a core set of
businesses, or business
types, that are
desirable and conduct
attraction proactively.
i. Using the target cluster analysis, identify the high paying, high skilled, high tech industries that align with
community goals and existing strengths and focus attraction efforts on those.
ii. Create a wish list of companies and begin targeted pursuit. Communicate this vision for attraction to city and
regional leaders so that they can assist and pursue as well.
iii. Maintain a list of all necessary infrastructure (including telecommunications) needs that would arise from this
type of development and take steps to complete.
iv. Be proactive in going after the companies that fit this vision, including attending conferences, scheduling
meetings with site selectors that work in this sector, and updating all necessary marketing material to speak to
the sector directly. Build from recent tech company successes in New Albany to make the case for why other
similar companies should choose New Albany through quotes, including in promotional material, and even
requesting assistance with networking.
Priority: Medium
Roles for City and Partners: City to lead.
Timeline: Mid-Term
Outcomes: Increased private investment, tax base, and average earnings per worker.
3.2.B
Review and refine the
city’s attraction
campaign.
i. Continue to evaluate the goals and outcomes of the current attraction efforts being pursued by the city,
OneColumbus, State of Ohio, and other organizations doing attraction on behalf of New Albany. See where
those efforts have been successful and where they do not align with New Albany’s goals.
ii. Continue to communicate directly with OneColumbus and the state about what their priorities are, what types of
trips, conferences, and events they are attending, and how New Albany fits into their efforts. Participate fully in
the attraction efforts that align with New Albany’s selected goals to get the name, and face of economic
development leadership as well as information about the city’s assets in front of decision makers.
iii. Focus on strategic attraction tactics such as meeting with site selectors that are most involved in the types of
industries being sought, attending specific conferences around the country that will provide face-time with the
right people, and continued partnership with the regional and state organizations.
Priority: Medium
Roles for City and Partners: City to lead with OneColumbus.
Timeline: Mid Term
Outcomes: Increased visibility and more efficient attraction efforts.
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3.2.C
Refine marketing
material and staff
development efforts.
i. Conduct a full audit of the city’s website and marketing collateral to make sure it speaks to the audience of the
selected focus industry. Keep it updated.
ii. Pursue staff development and training programs that will increase the knowledge and understanding of the
targeted industries, trends, terms/language, and needs. Use information from these trainings to design targeted
marketing collateral that aligns with each industry’s core factors when making location decisions. Nationally
recognized certifications such as Certified Economic Developer (CEcD) build networks as well as knowledge.
iii. Utilize website tracking and real-time chat to identify businesses that are visiting the website and may be
interested in locating in the city. Use this to build the CRM, create warm leads for attraction, and better
understand how businesses are using the New Albany website to gain insights.
Priority: Medium
Roles for City and Partners: City to lead.
Timeline: Mid Term (make some of the easy changes to website immediately)
Outcomes: Increased visibility and earlier engagement with prospects.
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Strategy 4: Integrate Innovation and Entrepreneurship with Existing Businesses and Resources.
Rationale: The City of New Albany and the Columbus region show strengths in services offered around networking, market validation, and access
to capital for high-growth technology companies. Gaps exist in financial literacy, investment knowledge, and overall support for small businesses.
The existing physical incubator and the deep innovation ecosystem that is available in New Albany is a competitive advantage when submitting
information to site selectors, Encouraging the innovation ecosystem to reach more participants, and embrace Main Street businesses and other
small businesses in addition to technology startups will increase idea exchange and energy. It will promote the idea that innovation can come
from many places. Integrating activities with existing business resources provides more support for business growth and retention within New
Albany.
Initiative 4.1: Assess the Innovation Ecosystem.
4.1.A
Conduct a
comprehensive
assessment of the
Innovate New Albany
incubator program
and operations.
i.
Establish a business plan that clearly shows the role of the City of New Albany and other partners and funders
such as Rev1. This can be prepared for the city by a consultant.
ii. Create a business model that is not dependent on revenue from real estate and that graduates businesses out of
the incubator while still maintaining income needed for programming. For example, large companies in the
community may be recruited to sponsor incubator space, which will also connect entrepreneurs to the business
community. Raising the visibility of entrepreneurship within the business community, and providing mentoring
opportunities are indicators of improved integration of new and established businesses.
iii. Explore expanding curriculum and programming around business basics that would be beneficial to any business
owner, such as financial literacy, operations, and marketing. Making the incubator accessible to non-traditional
tech based businesses will create a more diverse environment for those involved and strengthen the overall
network for better outcomes.
Priority: Medium
Roles for City and Partners: City to initiate, delegate plan
preparation.
Timeline: Mid Term
Outcomes: City and partners understand role, priorities.
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4.1.B
Create incubator
metrics, milestones,
and reporting.
i. Develop metrics and milestones and make sure all programs and services drive to achieve them. Establish a
dashboard for reporting on results from the incubator to the city. Including metrics such as return on investment,
jobs created, capital investment, and retention of companies in New Albany.
ii. Include Rev1 and current incubator management as partners.
iii. Review dashboard on a regular basis, adjust funding and programming as necessary to better meet goals and
industry needs.
iv. With assistance from Innovate New Albany leadership, collect information on leadership, location, and size of
incubator graduates and add to the city’s CRM.
Priority: Medium
Roles for City and Partners: City to initiate, consider
delegating.
Timeline: Mid Term
Outcomes: City and community understanding of what incubator contributes, and city can adjust
priorities and resources as needed.
4.1.C
Conduct an
entrepreneurial
ecosystem assessment.
i. Develop an understanding of the ecosystem gaps in the region and identify the unique role of New Albany. This
should be done with partners, for example Rev1.
ii. Build on past assessments and include information about how disruptions such as the 2009 financial crisis and
recession, and the COVID-19 response, have specifically affected the ecosystem. Look for trends that encourage
or discourage entrepreneurship that go beyond systemic shocks, such as demographic changes, new educational
programs, and industry- or business-specific workforce dislocations.
iii. Include in the assessment the supply/demand of the full spectrum of entrepreneurial needs, including co-
working space, incubator space, an accelerator program, and low-rent/small scale office space. Consider the
potential for a niche accelerator program to locate in New Albany that is focused on the region’s core
competencies and can use experts and institutions in the region to act as mentors, develop curriculum, and help
push companies to the next stage of their expansion.
iv. Identify gaps and using the outcomes of the self-evaluation in Initiative 1.1, select current or emerging gaps that
New Albany can fill and that can be accomplished with the city’s resources, or can be delegated to a partner.
Priority: Medium
Roles for City and Partners: City to lead, Rev1 partner.
Timeline: Mid Term
Outcomes: Increased entrepreneurial activity and retention of firms.
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Initiative 4.2: Increase Recognition of Entrepreneurs and Innovation and Promote Retention in New Albany.
4.2.A
Broadcast success
stories within the
community.
i. Showcase successful entrepreneurs and innovators in various forms of media, communication (such as BR&E),
and promotional materials. Include those involved with product development at the city’s large companies in
these showcases, as they are also good representations of innovation and entrepreneurship.
ii. Encourage and facilitate recognition at community events, engagement with primary schools, and overall
promoting entrepreneurism and innovation as a viable career path, at any age, and important to the economy.
Priority: Medium
Roles for City and Partners: City to lead.
Timeline: Mid Term
Outcomes: Better integration of innovators, community support.
4.2.B
Encourage Main Street
as well as technology
businesses to start and
stay in New Albany.
i. Create physical and psychological support for non-technical innovation. Physical support includes encouraging
use of the incubator and other resources for hospitality, services, retail businesses. Examples of psychological
support are including non-tech successes in showcase events even if the company is small.
ii. Make sure Main Street and small business owners don’t feel left out of the economic development conversation
by continuing to develop and promote programming and technical assistance to meet their needs. Include
access to training, mentors, and regional resources that can help them remain in New Albany and expand. Be
flexible about the level of formality and scheduling of webinars or events, polling the target audience about what
times, or format and length of meeting or training, work within the demands of their day to day operations.
iii. Establish milestones for success unique to small business. These can be specific to each business but should also
demonstrate the impacts that small and Main Street businesses, in aggregate, have on the community.
iv. Gather and plant entrepreneurial “seeds.” In conversations with businesses, listen for service gaps or business
needs. Find a place to plant the seed with the incubator or other resource or business.
Priority: Medium
Roles for City and Partners: City to lead through business
plan.
Timeline: Mid Term
Outcomes: Village Center businesses supported, new activities and amenities increase quality of
life.
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Initiative 4.3: Add New Pathways to Entrepreneurship.
4.3.A
Raise awareness about
entrepreneurship as a
career for youth
through the education
system.
i. Recruit a champion within the education system that can help eliminate the walls between education and
business and bring the two together.
ii. Meet with guidance counselors and curriculum developers to identify opportunities for age-appropriate
presentations, conversations, activities to bring into the regular school year.
iii. Support hosting an entrepreneurship and business plan club and competition.
iv. Where space is available, encourage hosting actual small business activity at schools.
Priority: Medium
Roles for City and Partners: City to initiate, delegate.
Timeline: Mid Term
Outcomes: Increased diversity of business startups and ownership, community appreciation of
local innovation.
4.3.B
Raise awareness about
entrepreneurship as a
second career for
experienced residents.
i.
Develop resources that would be appropriate for this segment and make them. Promote on website, in
conversations, and regionally as New Albany as a great place to start a business.
ii. Create a pool of mentors that can be dispatched to help newer entrepreneurs. Understand from the
entrepreneurs what they would find helpful, and from the mentor what they would be able to provide.
iii. Expand the pool of mentors by reaching out to junior, mid-level, and senior employees. Include skilled non-
management workers as well.
Priority: Medium
Roles for City and Partners: City to initiate, delegate.
Timeline: Mid – to Long Term
Outcomes: Increased diversity of business startups and ownership, community appreciation of
local innovation.
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METHODOLOGY AND DATA SOURCES
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METHODOLOGY
The strategies developed for this Economic Development Plan Update are grounded in research, both quantitative and qualitative. Through the
analysis of demographic and economic data, along with interviews with a selection of New Albany’s business leaders, an understanding of the existing
conditions in the city was formed. The results of this research are outlined in the Economic Baseline Analysis, Economic Drivers Inventory, and Industry
Cluster Analysis sections of this report. This information was used to inform the subsequent steps of the planning process.
DATA SOURCES
ECONOMIC MODELING SPECIALISTS INTERNATIONAL (EMSI)
To analyze the industrial makeup of a study area, industry data organized by the North American Industrial Classification System (NAICS) is assessed.
Camoin 310 subscribes to Economic Modeling Specialists Intl. (Emsi), a proprietary data provider that aggregates economic data from approximately
90 sources. Emsi industry data, in our experience, is more complete than most or perhaps all local data sources (for more information on EMSI, please
see www.economicmodeling.com). This is because local data sources typically miss significant employment counts by industry because data on sole
proprietorships and contractual employment (i.e. 1099 contractor positions) is not included and because certain employment counts are suppressed
from BLS/BEA figures for confidentiality reasons when too few establishments exist within a single NAICS code.
ESRI BUSINESS ANALYST ONLINE (BAO)
ESRI is the leading provider of location-driven market insights. It combines demographic, lifestyle, and spending data with map-based analytics to
provide market intelligence for strategic decision-making. ESRI uses proprietary statistical models and data from the U.S. Census Bureau, the U.S.
Postal Service, and various other sources to present current conditions and project future trends. Esri data are used by developers to maximize their
portfolio, retailers to understand growth opportunities, and by economic developers to attract business that fit their community. For more
information, visit www.esri.com.
PITCHBOOK
PitchBook is a leading provider of company and transaction data, including venture capital, private equity,
and M&A transactions. As part of the Morningstar brand, PitchBook tracks every aspect of the public and
private equity markets, and is trusted by financial investors and other professionals worldwide. For more
information on PitchBook, please see https://pitchbook.com/.
STUDY REGIONS
The data analysis in this report was conducted to identify demographic, socioeconomic, and business
and industry trends in the City of New Albany’s economy. In addition to data specific to the City of New
Albany, data was collected and analyzed for the Columbus, OH metropolitan statistical area (MSA) and
Ohio where appropriate.
ECONOMIC DEVELOPMENT PLAN UPDATE FOR THE CITY OF NEW ALBANY, OH
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Leading action to
grow your economy
Camoin 310
PO Box 3547
Saratoga Springs, NY 12866
518.899.2608
www.camoinassociates.com
@camoinassociate