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R-01-10-11-112A1 - 10/11/2001RESOLUTION NO. R- 01- 10- 11 -12A1 WHEREAS, on October 26, 2000 the City Council adopted Resolution No. R- 00- 10- 26 -13B1 retaining the firm of Angelou Economics to develop an Economic Development Strategic Plan, and WHEREAS, on January 25, 2001 the City Council adopted Ordinance No. G- 01- 01- 25 -9C1 which created the Economic Development Advisory Commission ( "Commission "), and WHEREAS, the purpose of this Commission was to assist Angelou Economics in developing an Economic Development Strategic Plan, and to make recommendations to the City Council on matters pertaining to economic development, and WHEREAS, the Commission and Angelou Economics have developed and recommended that the City Council accept and adopt an Economic Develop Strategic Plan, entitled Target Industry and Marketing Strategic Plan, Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the Target Industry and Marketing Strategic Plan, a copy of which is attached hereto as Exhibit "A" and incorporated herein for all purposes, is hereby accepted and adopted. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to ∎ oo" A\ WORLDOX \o, \WDOX \RESOLUTI \Riioiu i.WPD /ec the public as required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended. RESOLVED ATTEST: this llth day of October, 2001. LAND, City Secretary 2 City of Round Rock, Texas Acknowledgements Executive Summary AngelouEconomics would like to thank the sponsors of this report, the City of Round Rock and the Round Rock Chamber of Commerce, for their guidance and assistance. Special appreciation is extended to the members of the Project Advisory Commission for their dedicated participation and invaluable insights throughout this process. AE would also like to thank all members of the Round Rock community who participated in focus groups, interviews, and the online survey. This public input was vital to the development of this report. Proiect Advisory Commission Members: Roy Beard, Vara Company, Inc. Jim Boles, Summit Commercial Industrial Properties Judge John Doerfler, County Judge, Williamson County Tom Gaul, Superintendent, Round Rock I.S. D. Ray Gill, R. Gill & Associates Jim Goodwin, Business Ink Company John Gordon, Tew Electric Inc. * Ron Hagood, Brath (Advisory Commission Co- Chair) Keith Hickman, OPUS 3 Architects * Rufus Honeycut, Retired (IBM) (Advisory Commission Co- Chair) Round Rock City Council Robert Stluka, Mayor Tom Nielson, Mayor Pro Tem, Place 1 Alan McGraw, Place 2 Carrie Pitt, Place 3 Earl Palmer, Place 4 Isabel Gallahan, Place 5 Gary Coe, Place 6 Bob Bennett, City Manager Ruth Koughan, Round Rock Senior Citizens Association Andy Martinez, Permond Solutions, Inc. Mike Robinson, F. T. Woods Construction Deborah Ryle, Round Rock Medical Center Jon Sloan, First Texas Bank James Spears, Round Rock resident Mary Jane Todd, Round Rock Leader John Turner, TXU Mark Whitman, Thermo MeasureTech Staff: Nancy Yawn, City of Round Rock AngelouEconomics 8 DATE: October 5, 2001 SUBJECT: City Council Meeting — October 11, 2001 ITEM: 12.A.1. Consider a resolution adopting the Target Industry and Marketing Strategic Plan as a guide for the City's economic development efforts. The Target Industry and Marketing Strategic Plan is the same that was provided to you at the last meeting. The only change is on page 8 of the Executive Summary, which was amended as requested by Councilmetnber Gallahan. Attached is a copy of that page for your copy of the Plan. Resource: Bob Bennett, City Manager Nancy Yawn, Director Public Affairs, Business Development History: In November, 2000 the Commission began working with Angelou Economics to develop an economic development plan. The process for developing the plan has been very inclusive with much input being collected from business leaders and citizens. At the September 27, 2001 City Council meeting, a presentation was made and a recommendation to accept was made by the Economic Development Advisory Commission. Funding: Cost: $210,000 from 2001 -2002 General Operating Budget Source of funds: General Operating Budget Outside Resources: Angelou Economics ImpactBenefit: This plan will serve as a comprehensive guide for the City and Chamber's economic development efforts. It will focus the efforts on recruiting the target industries identified, provide an image (brand) for the City to be used by many entities, outline a marketing strategy, and encompass infrastructure and community development initiatives. Public Comment: N/A Sponsor: N/A Round Rock, Texas Target Industry and Marketing Strategic Plan Prepared for: The City of Round Rock and the Round Rock Chamber of Commerce Fall 2001 AngelouEconomics technology -based economic development EXHIBIT 1 ',An fi- 01- 10-11- JaRI Round Rock Target Industry and Marketing Strategic Plan: Table of Contents Executive Summary 1 Community Economic Assessment 9 Population Trends 10 Education Attainment 14 Household Income Distribution 16 Household Age Distribution 18 Racial and Ethnic Distribution 20 Regional Labor Force Trends 22 County Employment by Industry 28 Residential Housing Trends 30 Retail Sales Trends 32 Target Industry Assessment 35 Recommended Target Industries Overview 37 Cluster Industry Methodology 47 Strong Cluster Employment & Analysis 49 - Computer Equipment 55 - Semiconductors & Electronics 58 - Housing & Construction 61 - Industrial Supplies 64 Weak Cluster Employment & Analysis 67 - Telecommunications 70 - Retail 73 - Software /Multimedia /Dad Processing 77 - Health Services 80 - Business & Professional Services 83 - Financial Services 86 Round Rock Target Industry and Marketing Strategic Plan: Table of Contents Marketing Strategic Plan 89 Why Marketing Matters 89 Definition of Marketing Terms 90 Why Should Round Rock Market 92 Who is the Audience 93 What is the Desired Outcome (Metrics) 97 What is Round Rock Selling 101 What does Round Rock Stand For 105 Internal Marketing: Selling the Concept to the Community 110 External Marketing: Selling Round Rock to the Target Audience 113 Potential Marketing Budget 118 Conclusion 119 Recommendations & Implementation Guidelines 121 Recommendation I: Business Development & Recruitment 122 Recommendation II: Marketing Round Rock 129 Recommendation III: Infrastructure Issues 132 Recommendation IV: Regional Strategy 136 Recommendation V: Economic Development Organizational Issues 139 Appendices Appendix A: Public Input 143 Appendix B: Target Industry Associations 163 Appendix C: Sample Marketing Campaign 173 Executive Summary Introduction Executive Summary Located in the heart of Central Texas, the city of Round Rock has transformed from a quaint, historic community north of Austin to one of the fastest growing cities in the nation. Led by the success of Dell Computer Corporation as well as a host of other local high tech companies, Round Rock has seen its population double over the past decade to over 62,000 in 2001. Employment in Williamson County increased over 150 percent and median household income rose almost 50 percent to become the highest in the Austin metropolitan region. New residents to the area have flocked to Round Rock's premium housing stock, excellent school system, and high quality of life. Much of this economic success can be attributed to the visionary political leadership of city officials. In the midst of this strong growth, city leaders recognized the need for economic diversity to continue these trends. In early 2001, the Austin - based firm of AngelouEconomics (AE) was hired through a partnership of the City of Round Rock and the Round Rock Chamber of Commerce to assist in updating the city's economic development strategy. Building upon AE's 1996 Strategic Plan, the 2001 Round Rock Target Industry and Marketing Strategy seeks to solidify the city's position as an economic leader in Central Texas through business diversification and image enhancement. This Plan was completed in two primary phases. The Community Economic Assessment and Target Industry Assessment of Phase One assesses Round Rock's economic assets and identifies target industries to expand locally or recruit externally. The Marketing Strategy created in Phase Two presents a new image of Round Rock and a detailed marketing plan to recruit target industries. Public input was gathered throughout the project through focus groups, stakeholder interviews, an online survey, and feedback from the project's Advisory Commission. Specific action items resulting from these two phases are outlined in the Recommendations and Implementation Guidelines. Phase One: Target Industry Strategy The identification of target industries requires a thorough assessment of Round Rock's existing economic infrastructure and its capacity to support new businesses. Strategically located near Austin along the dynamic 1 -35 Corridor, the city's most important economic assets include its existing base of technology- oriented industries, friendly business climate, highly skilled labor force, abundant utility infrastructure, and excellent quality of life. In addition, Round Rock ranks as well AngelouEconomics 1 Executive Summary or above many of its regional and national competitor communities in almost all areas, such as job growth, educational attainment, and wage levels. While Round Rock's potential for attracting new businesses is strong, city leaders face a variety of challenges. Rapid population growth throughout Williamson County has led to traffic congestion and concerns over other infrastructure, including utilities, schools, and affordable housing. The city has become dependent on Dell for providing jobs as well as generating retail sales tax rebates. With sales tax revenues of over $36 million in 2000, Round Rock is uniquely reliant on this income to assist in financing transportation projects and subsidizing residential property taxes. Although job growth in Round Rock and Williamson County has increased dramatically over the past decade, approximately half of all residents must still commute elsewhere (primarily Austin) for work. Other issues potentially hampering the city's economic growth include the lack of local higher education and inadequate funding for economic development efforts. In addition to these challenges, Round Rock increasingly must compete regionally, nationally, and even globally for new industries. These various strengths and challenges will drive the city's economic development efforts over the next several years. By creating greater employment opportunities within Round Rock, the city can capitalize on its burgeoning labor force and strong business climate while allowing residents to work closer to home, thus decreasing commute times and traffic congestion. Expanding and recruiting appropriate target industries will help the city most effectively accomplish this goal. The target industries identified within this Plan were derived from a comprehensive assessment of Round Rock's existing base of businesses. These targets seek to diversify the economic base by expanding sectors current deficient in the local market as well as build on existing strengths. AE believes these industries can be attracted to the area, meet the needs of the community, and display the highest growth potential. While several of these sectors fall within the high tech categories, others represent industries necessary to "rounding out" Round Rock's maturing economy. These target industries include: Weak clusters to be strengthened: • Telecommunications • Software /Multimedia/Data • Business & Professional Services • Retail • Health Services Strong clusters to • Computer Equipment and support build upon: industries • Semiconductors & Electronics AngelouEconomics 2 Phase Two: Marketing Strategy Executive Summary Although the Austin area is nationally recognized for its high tech focus and strong economic growth, the city of Round Rock is not as well known. A comprehensive marketing strategy is therefore an essential element of the city's economic development efforts. A successful campaign will establish the image of Round Rock as a premier location for high growth industries and unite the community behind a single, well - defined message. Understanding the needs of the target industries will help in crafting this message to appeal directly to desired companies and their employees. In general, the city's marketing efforts should establish the perception of Round Rock as a unique community with many positive assets that will help individuals and companies succeed. With the audience established (target industries, their employees, business influencers, and entrepreneurs), defining Round Rock's message to differentiate it among similar communities becomes the challenge. The following statements reflect in general terms what the city offers its target audience: Round Rock offers companies in business and professional services, retail trade, and health care sectors access to a large, prosperous market of individuals and companies. The community's business friendly climate and family- focused environment have contributed to the success of global high tech companies and local entrepreneurs. Round Rock is committed to creating an environment where companies and individuals can reach their maximum potential. Based on this "product," the overall theme which emerged from marketing focus groups and throughout this project is that Round Rock is a city which promotes success. Success, as a universal human goal, embraces the spirit of the city and builds on the outstanding accomplishments of Round Rock's businesses, schools, and individuals. Round Rock is a unique community in the level of success it has achieved so quickly during the past decade as well as its potential for success in the future. Through positioning itself in this way, Round Rock implies that companies and individuals which choose to locate there will also experience success. AE recommends that the city build its marketing message on this overall theme. Similar to branding of any product, a professionally- designed logo and tagline incorporating the success theme should be utilized by all entities, including the Chamber, City, businesses and other community organizations, which promote Round Rock as a place to live, work and shop. This tagline would replace all other existing campaigns and present a consistent AngelouEconomics 3 Recommendation I: Business Development & Recruitment Responsible Entity Timeline Funding Goal/Task Primary Secondary Start End Needed Goal A: Identify new industry targets for recruitment Task 1: Identify new target industries /businesses Task 2: Initiate target marketing campaign (See Recommendation 11) COC /City 10/01 ; 3/02 (ongoing) Goal B: Strengthen retention efforts /services for existing businesses Task 1: Create Major Employers Task Force Task 2: Initiate Small Business Executive Roundtables Task 3: Promote/increase networking programs Task 4: Review /create member & technical assistance programming COC City 1/02 4/02 (ongoing) $2.5K $2.5K Goal C: Encourage local entrepreneurship Task 1: identify needs of local entrepreneurs Task 2: Expand local small business incubator Task 3: Introduce city recognition program for start-ups COC City 3/02 7/02 (ongoing) Goal D: Review /update city's incentive programs City 1/02 3/02 Goal E: Review economic development impact analysis model City/COC 1/02 3/02 $5 -10K Executive Summary and unified image of Round Rock. Ensuring broad support of this single message will require the buy -in of the entire Round Rock community. For this reason, a comprehensive intemal campaign should be conducted prior to initiating any external marketing activities. Specific recommendations regarding these internal and external efforts as well as goals and metrics to measure their effectiveness are detailed in the Marketing Strategy of this report. Recommendations and Implementation Guidelines AE recognizes that for any economic development plan to be effective, it must relate overall goals into specific action items with assignable tasks and resources. In addition to identifying target industries and outlining a new marketing strategy, the Recommendations and Implementation Guidelines seek to address a range of issues impacting the city's economic development efforts. The recommendations focus on the following areas: • Business Development and Recruitment: These recommendations seek to address the city's need for diversifying its economic base to improve employment opportunities and expanding the city's tax base. In addition to recruiting target industries extemally, every effort must also be made to retain and strengthen existing businesses and encourage local entrepreneurship. As the entity primarily responsible for these activities, the Round Rock Chamber of Commerce may need to revisit its current efforts and institute new programming. The City needs to review its incentive policies and be able to justify funding of its economic development efforts to citizens. AngelouEconomics 4 Recommendation 1I: Marketing Round Rock Responsible Entity Timeline Funding Goal/Task Primary Secondary Start End Needed Goal A: Conduct internal marketing campaign Task 1: Agree on message/theme of campaign Task 2: Hire professional firm to create logo and design new collaterals/websites Task 3: Upgrade economic development marketing web site (Chamber) Task 4: Identify & engage local industry leaders in efforts Task 5: Establish standard protocol for handling leads & prospects Task 6: Agree on goals /metrics for extemal campaign COC /City 10/01 Ongoing Goal B: Conduct external marketing campaign Task 1: Implement plan based on recommended distribution channels - Maintain comprehensive economic development website - Increase media publicity - Participate in events of target industries -Join target industry associations - Schedule trade missions to recruit companies & talent - Distribute collateral materials with consistent message/logo Task 2: Increase involvement in regional marketing efforts COC /City 3/02 Ongoing TOTAL: $205 V -210K Executive Summary • Marketing Round Rock: As Round Rock seeks to promote itself to its target industries as an exceptional business location, the city must engage in a comprehensive and strategic marketing campaign. For this campaign to be considered successful, it must accomplish the following: 1) unite the community behind a single marketing message; 2) establish the image of Round Rock as a premier location for high growth industries; 3) create an awareness of Round Rock as part of a considered set of options when companies make site selection decisions, and; 4) result in a more high impact, diversified mix of companies locating in Round Rock. All aspects of this campaign will require close coordination among the City of Round Rock, the Round Rock Chamber of Commerce, the local business community, and all other area organizations involved in the promotion of the city. As previously discussed, this campaign encompasses both internal and external marketing activities. AngelouEconomics 5 Recommendation IV: Regional Strategy Responsible Entity Timeline Funding Goal/Task Primary Secondary Start End Needed Goal A: Strengthen city's leadership within Williamson County Task 1: Create/expand partnership with Georgetown to promote 1 -35 corridor development & address other regional issues Task 2: Create/expand partnership with Cedar Park to promote east/west linkages across county & address other regional issues City COC 11/01 Ongoing Goal B: Strengthen clty's position within Austin Metro Area Task 1: Increase participation in regional efforts to address challenges Task 2: Join efforts to pursue regional opportunities City COC 2/02 Ongoing Recommendation III: Infrastructure Issues Responsible Entity Timeline Funding Goal/Task Primary Secondary Start End Needed Goal A: Continue efforts to attract local higher education facility City/COC Ongoing Goal B: Establish committee to monitor real estate development Task 1: Assess a fisting land uses and plan for future development Task 2: Develop plan to address office space needs Task 3: Assess potential for Downtown expansion Task 4: Coordinate beautification/landscaping programs for major commercial corridors City 4/02 4/03 Goal C: Monitor Impact of economic growth on traffic /utilitiesllSD City COC 3/02 Ongoing Executive Summary • Economic Infrastructure Issues: Several critical infrastructure issues that were identified in AE's 1996 Strategic Economic Plan as impacting Round Rock's economic growth remain important considerations today. Concems over the lack of higher education opportunities, future real estate development, and the impact of rapid growth on the city's resources were reiterated throughout the course of this project. The goals and tasks presented within these recommendations seek to provide a continuing format to guide the city in addressing these issues. • Regional Strategies: Over the past decade, Round Rock transformed from a small suburban bedroom community to a significant business location in Central Texas. As the largest city in Williamson County and part of the booming technopolis of the Austin area, Round Rock should take advantage of this strategic location to solidify its leadership role in the region. First, the city must strengthen its partnerships with other key communities within the county to pursue common development goals. Round Rock should also increase its role in regional efforts to address the challenges and opportunities impacting all of the greater Austin metro area. These issues include traffic, affordable housing, workforce development, environmental impacts, and regional marketing ventures. AngelouEconomics 6 Recommendation V: Economic Development Organizational Issues Responsible Entity Timeline Funding Goal/Task _. Primary Secondary „Start. End Needed Goal A: Begin implementation of the Strategic Plan City/COC 10/01 1/02 Task 1: Assign tasks among Chamber & City E.D. staff Task 2: Generate buzz/community support for the Strategic Plan Goal B: Increase resources for economic development efforts City/COC 1/02 1/04 $350K -2002 Task 1: Request/obtain increased funding for E.D. efforts City/COC $500K -2003 Task 2: Hire professional firm to raise funds for Chamber COC Task 3: Increase staffing of E.D. efforts COC Executive Summary • Economic Development Organization: While each recommendation outlines specific goals and tasks necessary for promoting economic growth, the successful implementation of this plan is largely dependent on the organizational capacity of the city's major economic development organization —the Round Rock Chamber of Commerce. While certain City officials and staff are critical to these efforts, the Chamber is commissioned with primary responsibility for business development and marketing the community. Increasing Chamber funding and staffing resources are therefore critical to the city's overall economic efforts. Conclusion While Round Rock has achieved dramatic successes in recent years, implementing the 2001 Target Industry and Marketing Strategy can advance Round Rock into the ranks of other nationally recognized cities. By attracting new target industries and strengthening its existing ones, the city will ensure a more stable economy capable of sustaining continued growth for many years to come. Through its comprehensive marketing campaign, the city will increase its awareness among these targeted high growth industries by uniting the community behind a single, consistent message. The result will be a stronger, more diversified economy providing greater opportunities for success for all Round Rock citizens. AngelouEconomics 7 Acknowledgements Executive Summary AngelouEconomics would like to thank the sponsors of this report, the City of Round Rock and the Round Rock Chamber of Commerce, for their guidance and assistance. Special appreciation is extended to the members of the Project Advisory Commission for their dedicated participation and invaluable insights throughout this process. AE would also like to thank all members of the Round Rock community who participated in focus groups, interviews, and the online survey. This public input was vital to the development of this report. Project Advisory Commission Members: Roy Beard, Vara Company, Inc. Jim Boles, Summit Commercial Industrial Properties Judge John Doerfler, County Judge, Williamson County Tom Gaul, Superintendent, Round Rock I.S. D. Ray Gill, R. Gill & Associates Jim Goodwin, Business Ink Company John Gordon, Tew Electric Inc. * Ron Hagood, Brath (Advisory Commission Co- Chair) Keith Hickman, OPUS 3 Architects * Rufus Honeycut, Retired (IBM) (Advisory Commission r Co- Chair) Round Rock City Council Robert Stluka, Mayor Tom Nielson, Mayor Pro Tem, Place 1 Alan McGraw, Place 2 Carrie Pitt, Place 3 Earl Palmer, Place 4 Isabel Gallahan, Place 5 Gary Coe, Place 6 Bob Bennett, City Manager Ruth Koughan, Round Rock Senior Citizens Association Andy Martinez, Permond Solutions, Inc. Mike Robinson, F. T. Woods Construction Deborah Ryle, Round Rock Medical Center Jon Sloan, First Texas Bank James Spears, Round Rock resident Mary Jane Todd, Round Rock Leader John Turner, TXU Mark Whitman, Thermo MeasureTech Staff: Nancy Yawn, City of Round Rock AngelouEconomics 8 Community Economic Assessment Community Economic Assessment The purpose of the Community Economic Assessment is to review Round Rock's and the region's current economic and demographic condition. This assessment, in combination with the Cluster Analysis and Public Input, will provide the foundation for determining the target industries and strategies for marketing Round Rock. Throughout this section of the report, communities, counties, and metropolitan areas are cited to provide distinct economic and demographic comparisons for the city of Round Rock. Communities used in this analysis were chosen based on input from the Advisory Commission and include Round Rock's regional competitors as well as four other communities in similar size and proximity to a major metro area. Following is a list of the comparison areas: Cities: Round Rock, Cedar Park, Georgetown — Williamson County Austin — Travis County San Marcos — Hays County McKinney — Collin County (north of Dallas) Sugar Land — Ft. Bend County (southwest of Houston) Hillsboro, Oregon — Washington County (west of Portland) Boulder, Colorado — Boulder County (northwest of Denver) Metropolitan Statistical Area: The Austin -San Marcos Metropolitan Statistical Area (MSA) is comprised of the following counties — Bastrop, Caldwell, Hays, Travis, and Williamson. AngelouEconomics 9 Population Growth, 1970 - 2000 Round Rock 6 Williamson County 250,000 — ■ Round Rock 200,000 - 150,000 - 100,000 - 50,000 - 0 ■ William son Co. 1970 1980 Source. US. Census Bureau 1980 Source: US. Census Bureau 1990 1990 2000 Population Growth Index Comparison, 1980 - 2000 Round Rock, Williamson Co., Austin -San Marcos MSA 550 Round Rock 500 450 — Williamson Co. 400 �Austin-San Marcos MSA 350 SUS 250 200 (1990 =100) 150 100 2000 20% 15% 10% 5% 0% 1,000,000 750,000 500,000 250,000 Community Economic Assessment Share of Williamson County Population, 1970 - 2000 Round Rock 25% 1970 Sourcc U.S. Census Bureau Williamson County Population Projection, 2000 - 2030 0 1980 1990 2000 1990 2000 2010 2020 Sour= U.S. Census Bureau: Texas State Data Center 2030 6% 4% AngelouEconomics 10 Community Economic Assessment Round Rock has experienced dramatic population growth during the last three decades, growing from a small community of 2,800 in 1970 to a booming suburb of 61,100 in 2000. - Since 1990, Round Rock has experienced an average annual growth rate of 6.8 percent, increasing its population by over 29,600 residents. Williamson County experienced a similarly rapid growth rate with a total population increase of 79 percent or 110,400 persons. Williamson County is recognized as the second fastest growing county in Texas and 13 in the nation. The remarkable growth in Round Rock can be attributed to being the premier suburban community in the rapidly growing Austin metropolitan region. Round Rock is the largest city in Williamson County, accounting for 24 percent of its population, and has captured 27 percent of the county's growth since 1990. The Austin -San Marcos MSA has grown by over 403,500 persons or 48 percent since 1990, reaching a total population of 1,250,000 in 2000. Given current trends, Williamson County's population is expected to mushroom to 989,000 during the next 30 years. If Round Rock continues to capture 27 percent of the county's growth, the city's population will reach 261,000 by 2030. Strategic Implications These statistics indicate that Round Rock has historically been successful vis -a -vis its regional competitors in attracting businesses and residents. They also indicate that demand on public services, transportation infrastructure, housing, and education facilities will continue to increase, threatening Round Rock's high quality of life. If Round Rock is unable to meet this demand, new residents and businesses will choose to locate elsewhere in the metropolitan region. AngelouEconomics 11 Population Growth Comparison, 1990 - 2000 Suburban Communities New Population Comparison, 1990 - 2000 Williamson Co. 79% Round Rock ® 94% Cedar Park Georgetown 76% Austin 33% San Marcos 19% Austin -San Marcos MSA 48% McKinney Sugar Land 43% Boulder 10% Hillsboro 80% Texas 23% US 13% Comparison of Total Population, 2000 1,400,000 - 1,200,000 - 1,000,000 - 800,000 - 600,000 . 400,000 - 200,000 - 0 249,967 Soon= US. Census Bureau 152% 194% 35,000 30,000 25,000 20,000 15,000 10,000 5,000 656,562 29,577 WNW 17,187 12,222 I 5,661 1 Round Cedar Park Georgetown San Marcos McKinney Sugar Land Boulder Hillsboro Rock Sour= U5. Census Bureau Source. US Census Bureau Community Economic Assessment 1,249,763 32,800 31,203 19,077 8,575 Texas 20,851,820 US 281,421,906 61,136 26,049 28,339 34,733 54,369 63,328 94,673 70,186 Williamson Round Cedar Park Georgetown Austin San Marcos Austin -San McKinney Sugar Land Boulder Hillsboro Co. Rock Marcos MSA AngelouEconomics 12 Community Economic Assessment Round Rock, whose population was 61,136 in 2000, is the second largest community in the Austin -San Marcos metropolitan region after Austin. Although San Marcos is the third largest city in the Austin -San Marcos MSA, its population is approximately half that of Round Rock. Boulder is the largest suburban counterpart with approximately 95,000 residents, followed by Hillsboro and Sugar Land. Approximately five percent of the Austin -San Marcos region lives within the city of Round Rock. Since 1990, Round Rock has added 29,600 residents, more than any of its Central Texas suburban counterparts. During the 1990s, Round Rock's total population growth was four times that of the state of Texas (94 percent compared to 23 percent). Round Rock has captured 7 percent of the Austin metro area's total population growth since 1990. Round Rock's compounded annual growth rate of 6.8 percent since 1990 has outperformed that of all its regional competitors except Cedar Park, which experienced an annual growth rate of 11.4 percent during the last decade. Strategic Implications Given this explosive population growth, Round Rock has the opportunity to leverage its labor force growth to market the community to major corporate employers. By attracting new businesses, Round Rock will ensure a stable and diversified economy capable of sustaining continued growth. Round Rock has, however, clearly benefited from being the home to the majority (12,000 employees) of Dell Computer Corporation's facilities in the Central Texas region. AngelouEconomics 13 Educational Attainment Comparison, 1990, Adults 25+ _ UWilliamsonCo. •Travis Co. RHays Co. <aCoIhnCo. ■Fort Bend Co ■Boulder Co. •Washington Co. •Texas NUS 300 % 80% 60% 40% 20% a% High School Diploma Source. US. Census Bureau; AngdouEconolma Public School Academic Excellence Indicators Wn 945. Source: Texas Education Agency; Cola Department of Education; Oregon Department of Education Some College, no degree Community Economic Assessment 4 -year College Degree or Higher Round Reek Leander ISO Georgetown Austin ISD San Marcos 100 MclOnney ISO Fort Bend ISO Boulder Valley Hillsboro ISO (Cedar Park) ISO (Sugar Land) School 019 Scheel District (0801488) 1998 -99 962% 9607. 96086 93294 9139E 95396 9609 N/A NIA 1997.96 962% 955% 959% 941% 93996 95.1% 952% NIA NIA 73806 Drop Out Nate 060611999 24% 47% 46% 1239. 109% 23% 4594 NI4 17.5% 080611998 19% 9.3% 4394 12396 9.5% 33% 52% NIA NIA Amd007O9Ree 1998-1999 0294 0996 0394 37% 2.0% 0696 029 1296 42% 006041999 891% 82.6% 82294 72.5% 75.5% 845% 863% 83996 77.4% 106301996 89296 79994 852% 710% 73.696 845% 86.5% NIA NIA %MowM Coma 199893 27.7% 15294 171% 1926 15.1% 267% 204% NIA N/A 1997-98 276% 147% 2099 17.1% 17796 27596 201% N/A N/A /Ion ACTSmrm Cass al 1999 226 225 221 204 182 210 202 I/O I/O Owed 1998 230 21.1 211 21 1 192 217 212 NIA N/A 4eddvdp98 86.607 86.133 36,568 57,450 $6031 56,299 85999 57,839 85512 Avg. Teacher Sin 836.968 555,717 937,531 338.176 938.581 935389 538,912 542.073 545265 Em6mo8y OuMntsged 19392000 14994 176% 25.3% 468% 505% 20295 206% N/A 9,14. AngelouEconomics 14 Community Economic Assessment Education attainment levels in Williamson County in 1990 (the latest numbers available) were above both the state and national averages. In 1990, 81 percent of Williamson County residents had received their high school diploma, which was well above both the state and national percentages and comparable to Travis County. Twenty-five percent of Williamson County residents had received their college degree, compared to 35 percent in Travis County and 26 percent in Hays County. These figures most likely reflect the location of the University of Texas at Austin and Southwest Texas State University in San Marcos. In 1990, Boulder County had the most educated population among all the communities, again reflecting that county being home to the University of Colorado. More current statistics show the Round Rock ISD provides local residents an excellent education when compared to other areas. Round Rock ISD experienced the lowest dropout rate and the highest graduation rate for the past two years relative to its national counterparts. Round Rock ISD students participate in academically advanced courses at a higher rate than their national competitors. Similarly, the classes of 1998 and 1999 achieved the highest mean ACT scores when compared to its state and national competitors. Strategic implications Most families consider the quality of the public education system when making relocation decisions. Round Rock's excellent academic performance attracted and continues to attract newcomers, increasing the values and demand for residential properties within Round Rock ISD. AngelouEconomics 15 Median Household Income Comparison, 1997 Increase 1989 to 1997 $70,000 - $60,000 - $50,000 - $40,000 - $30,000 - $20,000 Household Income Distribution, 1999 $50,102 $40 $37,341 49% Source: 5.5. Census Bureau; MgelouEconomics ■ Round Rock • Travis Co. 46% < $25,000 Source•. ['antes Inc.; AngelouEconomics 46% ■Cedar Park III San Marcos 38% $50,245 42% ▪ Georgetown • Hays Co. 525,000 to $ 50,000 $65,814 43% Community Economic Assessment $55,164 29% $49,753 40% Williamson Co. Travis Co. Hays Co. Boulder Co. Collin Co. Ft. Bend Co. Washington Co. • Williamson Co. ■Austin ■ Austin -San Marcos MSA $34,478 $37,005 28% Texas US. 9% $ 50,000 to $100,000 $100,000 + 23% AngelouEconomics 16 Community Economic Assessment Williamson County has the highest median household income in the Austin metropolitan region. Williamson County's median household income grew by 49 percent between 1989 and 1997 for an annual growth rate of 5.1 percent, nearly twice the rate of the national average. The median household income growth rate for Travis and Hays counties was 4.9 percent during the same period. - Among Williamson County's national competitors, Collin County had the highest median household income and the fastest rate beyond the Austin metro area. Round Rock's household income distribution is indicative of a community with a strong middle class. - Round Rock has the highest percentage of households in the Austin region whose income falls between $25,000 and $50,000 per year. - Nearly 50 percent of Cedar Park households eam between $50,000 and $100,000 per year, the highest percentage in the Austin region. In Round Rock, 36 percent of household fall into this income bracket. Round Rock has the highest percentage of households (8.5 percent) making more than $100,000 per year, followed by Cedar Park (8.4 percent). Strategic Implications Round Rock's low percentage of low - income households and strong middle class represent a balanced community mix. This is reflective of a stable, well - educated workforce which technology firms seek when conducting site location studies. Williamson County's high median household income relative to the Austin metropolitan region presents a strong purchasing power not found in other parts of the area and is attractive to retail establishments seeking a foothold in the region. It should be noted, however, that Round Rock's income statistics largely reflect the high wage jobs of one employer- -Dell Computer Corporation- -which pays an average salary of approximately $60,000. This situation highlights the need for the city to diversify its high income jobs among many employers. AngelouEconomics 17 People under Age 18 in Poverty, 1990 & 1997 30% - 20% - 10% - 0% 40% 35% 30% 25% 20% 15% 10% 5% 0% 12% ■ 1990 • 1997 9% 19% 18% 17% 17 Williamson Co. Travis Co. Hays Co. Collin Co. Fort Bend Co Boulder Co. Washington Co. Texas Source: US. Census Bureau; MgelouEconomics Age Distribution, 1999 0 -17 Source: U.S. Census Bureau; AngelouEconomics 18 -24 11% 11% 7% 7% ,11 25 -44 Community Economic Assessment 10% 10% 9% 8% 1 45 -64 24% 24% 20% 18% 65+ U5 • Williamson Co. •Travis Co. III Hays Co. •Collin Co. • Fort Bend Co •Boulder Co. • Washington Co. ■ us AngelouEconomics 18 Community Economic Assessment Williamson County's percentage of children living in poverty is half the national rate and has fallen at a faster rate than any of its peers during the 1990s. Between 1990 and 1997, the percentage of children living in poverty increased slightly statewide as Williamson, Travis, and Hays counties experienced decreases. While Williamson County children are much less likely to live in poverty than the nation, other area counties are just below the national rate. Collin County has the lowest percentage of children living in poverty among Williamson County's national and regional competitors. Age distribution statistics indicate that Williamson County is home to young families with children, a trend seen in suburban areas nationally. - Nearly 32 percent of Williamson County residents are under 18, the second highest rate behind Fort Bend County. Hays, Travis, and Boulder counties have the highest percentage of persons between 18 and 24 years of age, due to major state universities located within these counties. Below 7 percent of Williamson County residents are 65 years or older, nearly half the rate of the nation and slightly lower than Hays and Travis counties. Strategic Implications A decreasing rate of childhood poverty indicates that the regional economy has succeeded in generating well- paying jobs and that area families have prospered as a result. Williamson County's high rate of families with children reflects a stable workforce and increases the likelihood of community involvement by residents, especially in educational issues. This degree of resident investment in a community represents a strong advantage for Williamson County, as involvement by families will likely focus on quality of life improvements. AngelouEconomics 19 Round Rock Racial and Ethnic Distribution Comparison Racial and Ethnic Distribution, 2000 Largest Population Groups 90% - 80% - 74% 70% - 60% - 50% - 40% - 30% - 20% - 10% - o% White Scum: U.S. Ceisis Note: May not equal 100%die to roundrg. Hispanic • White 2000 • Hispanic • African American • Asian /Pacific Islander • Other 22% • Williamson Co. • Austin • Cedar Park • Georgetown s San Marcos • Boulder • Hillsboro • McKinney • Sugar Land • Texas • US 5% —� c•�.,.,r7 3% � ���Q�.jjE!lla�� African American Community Economic Assessment 2% Asian/Pacific Islander Other AngelouEconomics 20 Community Economic Assessment From 1990 to 2000, Round Rock's racial and ethnic diversity increased with all minority groups' population share increasing from 24 to 34 percent. In 1990, whites accounted for 76 percent of Round Rock's population; in 2000, that majority shrank to 66 percent. The two largest numeric increases in population were the white population, which increased by nearly 16,900 while the Hispanic population increased by 7,800 during the same period. Asians and Pacific Islanders grew by 621 percent, the largest gain of a single racial or ethnic group. During the 1990s, Round Rock's African American community nearly tripled in size, increasing from 1,600 to approximately 4,700 in 2000. Racial and ethnic diversity is more prevalent in Round Rock than in the nation as a whole and in any of its Williamson County competitors. Racial diversity is strongest in the city of Austin where whites account for only 53 percent of the total population. Boulder is the least racially diverse of Round Rock's national and regional competitors where 84 percent of the population is white. Among Round Rock's suburban counterparts, San Marcos is the most racially diverse community where minorities account for approximately 45 percent of the population. Strategic implications Round Rock's increasingly diverse population reflects both national and statewide trends, where Hispanics have become the largest minority community in the nation. With 34 percent of its population now minorities, Round Rock officials must continue efforts to reach out to a richer, more diverse population for building community consensus. If current trends continue, whites' share of Round Rock's population will fall below 50 percent between 2010 and 2020. AngelouEconomics 21 Williamson County Employment, 1970 - 2000 100,000 80,000 60,000 0) E 40,000 20,000 Annual Growth LLLI1LL111!i 1 Source•. U.S Bureau of Economic Analysis, AngelouEconomics Employment Employment Growth Comparison, 1990 - 2000 2000 Employment Estimate 175% 150% 125% 100% 75% 50% 25% 0% Williamson Co. Travis Co. Source: 65. Bureau of Economic Analysis; MgdouEcononu6 F 20% y 10% I 0% 95.4% Hays Co. Employment Growth Indexed, 1990 - 2000 105.7% Collin Co. Community Economic Assessment Williamson Co. Travis Co. - Hays Co. Collin Co. Fort Bend Co Boulder Co. Washington Co. 5 88.9% 1970 1975 1980 1985 1990 1995 2000 1990 1992 1994 1996 1998 Source: US. Bureau of Economic Analysis, MgdouEmnomirs Ft. Bend Co. Boulder Co. 2000 Texas 32.9% US 18.8% 59.9% Washington Co. AngelouEconomics 22 Community Economic Assessment During the last three decades, the number of persons employed by Williamson County businesses has grown dramatically from Tess than 10,000 in 1970 to approximately 81,000. Since 1970, employment in Williamson County has grown by more than 800 percent, with the period between 1995 and 2000 exhibiting the strongest overall growth at 69 percent. During the 1990s, nearly 50,000 jobs were created in Williamson County, approximately 17 percent of all new jobs in the Austin -San Marcos MSA. Among Williamson County's national suburban competitors, Collin County generated the most new jobs, 92,500, for a 106 percent overall growth rate during the 1990s. Among its suburban competitors, Williamson County has the second smallest number of persons employed within the county next to Hays. Approximately 236,000 persons are currently employed in Washington County, Oregon, which has the largest employment base of any of Williamson County's suburban counterparts. Although Fort Bend County has a number of employees similar to Williamson County, its local employment growth during the last decade was only half that of Williamson County. During the last decade, total wage and salary employment increased by 33 percent, while the US grew at 19 percent. Strategic Implications With over 80,000 jobs in Williamson County, the county is emerging as a major employment center in the Austin metro region, though employment has not yet reached the levels experienced in Collin, Boulder, and Washington counties. If current rapid job growth continues, Round Rock has the potential to attract an increasing share of the area's employment growth serving as a strong catalyst for development in the northern portion of the metro area. AngelouEconomics 23 Round Rock Unemployment Rate, 1990 - 2000 Labor Force Comparison, 2000 9% 7% - 5% - 3% - 1% - Round Rock - Austin -San Marcos MSA - Texas US 1990 1992 1994 1996 1998 2000 Source:. Texas Workforce Comnussion, MgelouEconomics Employment and lobs in County, 2000 (Employed Residents to lobs Ratio) 1.19 Fr 500,000 - 450,000 - 400,000 - 350,000 - 300,000 - 250,000 - 200,000 - 150,000 - 100,000 - 50,000 - 0 0.55 Williamson Co. Travis Co. Sarce:115 Bureau labor Slabs.:¢; MgdouEconomics ■Employed Residents 'Mobs 0.66 � 0.53 0,71 Ei Hays Co. Collin Co. Fort Bend Co Community Economic Assessment Round Rock 33,871 Cedar Park 5,362 Georgetown 14,164 Austin San Marcos 22,994 McKinney 18,768 Sugar Land 21,026 Boulder Hillsboro 28,316 Source: U.S. Bureau of labor Stabsks. MgelouEconomla 69,426 0.97 1.06 Boulder Co. Washington Co. 394,621 AngelouEconomics 24 Community Economic Assessment During the last 10 years, both Round Rock and the Austin -San Marcos MSA have enjoyed historically low unemployment rates compared to Texas and the U.S. In 2000, Round Rock's unemployment rates fell to 1.4 percent, the city's lowest rate in at least 10 years and lower than any of its national or regional competitors. Nearly 34,000 Round Rock residents participated in the labor force, second only to Boulder among its suburban counterparts. During the 1990s, Round Rock's labor force grew at a faster rate (6.6 percent annually) than any of its competitors. Labor force and employment statistics indicate that over 65,000 net commuters left Williamson County to work outside the county. In 2000, approximately 81,000 jobs were located in Williamson County, but 146,000 Williamson County residents were employed, a ratio of 0.55 jobs to employed residents. Among Williamson County's suburban counterparts, Boulder County had the highest ratio (1.06) while Fort Bend had the lowest (0.53). Strategic implications These statistics are a significant measure of the degree to which an area can be considered an employment center." With nearly half of employed residents leaving Williamson County for their jobs, the county can only be considered as highly suburbanized. Washington and Boulder counties, on the other hand, have more fully developed local economies that are capable of sustaining their residential population. As Williamson County's population increases, congestion on area roads is likely to become worse unless more job opportunities become available for residents. in addition, the property tax burden on local homeowners will remain high or worsen, as local governments must rely on residents instead of corporations to fund public improvements and services. AngelouEconomics 25 Williamson County Wage per Job, 1980 -1999 $ 50,000 50% 40% $40,088 Average Wage 250 A 030,000 020,000 $ 10,000 060,000 - 050,000 - $40,000 - $30,000 - 020,000 - 010,000 1980 1985 1990 1995 Source. U.S. Bureau of Economic Analysis; AngelouEconomics Average Wage Comparison, 1999 Growth 1990-1999 $ 51,209 $ 38,057 84% $22,336 46% 30% 20% 10% o F 300 275 0% 100 $37,588 57% 225 200 175 150 125 (1990 =100) $33,134 Community Economic Assessment Wage Growth Indexed, 1990 -1999 - William Co. Travis Co. - Hays Co. Who Co. Fort Bend Co Boulder Co. Washington Co. U5 1990 1993 1996 1999 Source: U.S. Bureau of Economic Analysis, AngelouEconomics $ 38,805 $ 38,778 91% 70% $32,711 47% Williamson Co. Travis Co. Hays Co. Collin Co. Fort Bend Co Boulder Co. Washington Co. US Source: U.S, Bureau of Economic Malys's; AngelouEconomics AngelouEconomics 26 Community Economic Assessment Since 1980, average annual wages for jobs located in Williamson County have increased over three times faster than the nation and the state. During the last two decades, average annual wages in Williamson County increased by nearly 400 percent, more than double Collin County which had the next highest increase. Until the mid- 1990s, Williamson County's wages were increasing at the same pace as its competitors and the nation. As recently as 1996, average annual wages in Williamson County were lower than both Texas and the nation. Average annual wages in Williamson County are 36 percent higher than the nation and 24 percent higher than Boulder County, its closest competitor. In 1999, the average annual wage in Williamson County was $51,209 and had increased by 142 percent between 1995 and 1999. Williamson County's national and regional competitors with the exception of Hays and Fort Bend counties, all experienced significantly higher wages than the nation. Strategic Implications These statistics indicate that since the Dell Computer Corporation's arrival in Round Rock, both the city and the county have benefited tremendously through an exponential increase in wages. Although wage data are only for jobs located in Williamson County, a large share of Dell's workforce are local residents. Efforts for economic diversification and recruitment in Round Rock should focus on further increasing the wages of local citizens. AngelouEconomics 27 Employment Comparison by Industry, 2000 Sector's Share of Total Area Employment 1 0% Construction Manufacturing AngelouEconomics 15% CI Williamson Co. 1/ Transportation, Communications and Public Utilities 2/ Finance, Insurance, and Real Estate TCPU 1/ Source: Texas Workforce Conmsuon & US. Bureau of labor Statistics 35% Wholesale & Retail Trade •Austin -San Marcos MSA Community Economic Assessment FIRE 2/ Services 30% OTexas III U.S. Government 28 Community Economic Assessment Compared to the remainder of the Austin MSA and Texas, a disparate share of Williamson County jobs are within the Trade and Construction sectors. Approximately 35 percent of all jobs located in Williamson County are in either Wholesale or Retail Trade, compared to a national rate of only 23 percent. Strong population growth in Williamson County has created high demand for housing, resulting in the county's 10 percent job share in Construction which is double the national rate. Williamson County's employment share in the high growth Services sector is only 20 percent, significantly lower than regional, state, and national averages. Although Williamson County's share of jobs in Manufacturing approaches the national rate, much of this employment is attributed to a few semiconductor manufacturers (Cypress and Dupont Photomasks). Strategic Implications Diversification is key to the long -term sustainability of a local economy. These statistics indicate that Williamson County's economy is strongly reliant on Construction, Trade, and Dell Computer. Williamson County, on the other hand, lags behind the remainder of the Austin metro area, Texas, and the US in the concentration of jobs in the Services sector. The United States as well as most of the world's other leading economies are becoming increasingly Services- related as multinational manufacturers seek to lower labor costs through automation and/or relocation to low -wage countries. Although certain Services sector activities are characterized by low- skilled and poorly paid jobs, Services also includes industries such as Business Services, Health Services, Legal Services, Engineering, Accounting, Research, and Management. In addition, many Internet - related activities are included within the Business Services sector. AngelouEconomics 29 Williamson County Residential Units Permitted 1980 -1999 6,000 • Multi- Family 5,000 • Single - Family 4,000 3,000 2,000 1,000 0 20,000 - 15,000 - 10,000 - 5,000 - 0 1980 1984 1988 Scarce: Texas Peal Estate Center, AngelouEconomics 1992 Total Residential Units Permitted, 1997 -1999 (Percent Change 1997 to 1999) 25,000 - 33% 130% Round Rock 5% - -- - - � 84% -28% Georgetown Austin McKinney Sugar Land Boulder Hillsboro Source: U.S. Census Bureau Note: Cedar Park and San Marcos data unavmlabe. 1996 Community Economic Assessment Single Family Permit Price Comparison, '80 -'99 Williamson Co. Price as Percent of Austin Metro 100% 90% 80% 70% 60% 50% 1980 20 -year Average: 84% 1984 1988 1992 Source. Texas Peal Estate Center, MgdoaEconomics • Multi - Family ▪ Single Family 1996 -13% -71 % AngelouEconomics 30 Community Economic Assessment During the last 20 years, the number of new residential units permitted in Williamson County has risen dramatically but not consistently. During the mid- 1980s, Williamson County experienced a sharp increase in the number of residential units - permitted with growth primarily being led by multi - family development followed by a dramatic drop due to a real estate market correction experienced throughout the state. Since the early 1995, Williamson County has enjoyed a sustained period of consistently strong demand for housing with over 4,200 new units permitted on average annually. The price per new single family permit in Williamson County during the last 20 years has remained more affordable than the Austin metro as a whole, averaging 84 percent of the area's typical permit price. Between 1997 and 1999, the number of residential units permitted annually in Round Rock has increased by 130 percent, a greater increase than the community's national and regional competitors. During those three years, nearly 6,000 new residential permits were issued in Round Rock, more than any of its suburban counterparts except McKinney. The majority (69 percent) of units permitted in Round Rock during this period were for single family homes, a share typical of suburban development patterns. In Austin and Hillsboro, about 60 percent of new residential permits issued were for multi - family units. Strategic Implications These statistics indicate that the Round Rock real estate market has remained an affordable altemative for Austin area residents who desire single family homes. The rising cost of homes throughout the area, however, has recently caused the development of more multi - family units in Round Rock and Williamson County. This more balanced mix of housing options will prove beneficial to the city of Round Rock as the costs for new infrastructure for single family developments remains high compared to denser development. AngelouEconomics 31 E C Round Rock Gross Retail Sales & Establishments, 1990 - 2000 530,000 826,000 $22,000 $18,000 $14,000 $10,000 $6,000 52,000 51,000 5750 5500 5250 50 1990 1992 1994 1996 Source: Texas Comptrollers Office Retail Sales per Capita Comparison, 1999 Growth 1990- 1999 6.6% 6.2% 91.8% 109.5 % 212% - 44.4% Round Rock Cedar Park Source: U.S Census Bureau; MgelouEcoeomia Note: Boulder and Hilsboro data unavailable. Sales WO V Outlets 1998 1 Georgetown — 1,000 — 900 — 800 — 700 — 600 E — 500 920 — 400 a — 300 200 100 0 $0 Round Rock Sales Tax Rebates, 1990 - 1999 Millions 540 830 810 Austin Community Economic Assessment $2.9 Million 1990 1992 1994 1996 1998 2000 Source: Texas Comptrollers Office San Marcos 1158% Increase $27,238 McKinney $36.3 Million Sugar Land AngelouEconomics 32 Community Economic Assessment During the last decade, Round Rock retail sales have increased from $209 million in 1990 to almost $982 million in 1999, a 370 percent growth rate. Although retail sales continued to climb during the later half of the decade, the number of retail establishments decreased by 8 percent from a high of 744 in 1996 to 681 in 1999. The sales tax rebates that Round Rock receives from the state have also increased dramatically during the last decade due to strong growth in local retail spending coupled with a' /2 cent local sales tax increase in 1998. In 1999, approximately $14,600 was spent on retail sales per capita in Round Rock, a 122 percent increase. - The highest rate of retail spending per capita as well as the largest increase among Round Rock's Texas competitors in 1999 was in McKinney, where over $27,000 was spent per person. This was a 212 percent increase from 1990. Cedar Park experienced the lowest retail sales per capita rate at $7,000. Retail spending per capita in Sugar Land declined by over 44 percent during the last decade. Strategic Implications Retail sales are a strong indicator of the economic and financial health of a community. The dramatic increase in retail spending reflects Round Rock's evolution from a `bedroom community" into a locus for development and economic activity in southern Williamson County and a leading community of the north Austin metro area. New retail developments such as La Frontera not only increase public coffers through the sales tax, but also encourage further retail development by increasing customer traffic. It is significant that Round Rock is beginning to re- capture the lost retail sales of its residents who historically had to travel to nearby Austin for shopping as households spend approximately one third of their annual income on taxable retail sales. Moreover, revenues generated by the % cent sales tax to subsidize property taxes and the 3 cent to fund transportation improvements will be increasingly critical to Round Rock's continued growth. AngelouEconomics 33 Community Economic Assessment This page intentionally left blank. 34 AngelouEconomics Target Industry Assessment Target Industry Assessment Target Industry Assessment The purpose of the Target Industry Assessment Study is to identify strengths and opportunities available in the Round Rock and Austin metro economy and to define strategies needed to further develop them. These strategies are outlined for each of the Recommended Target Industries. Some of the target industries have a strong local presence while others need to be strengthened through a coordinated recruitment effort. These are industries that AE believes can be attracted to the area fit the needs of the community, display future growth potential, and are important to promote a wet- rounded economy. A brief description of the actions that can be taken to support both intemal (retention and expansion of existing businesses) and extemal (recruitment) economic development efforts are included. How these recommended target industries are derived is detailed within the Industry Cluster Analysis, which applies AngelouEconomics' proprietary cluster analysis methodology to the Round Rock and Austin regional economy. This method is designed to reveal the strengths and weaknesses of the area's economy in related industry sectors. The following information is discussed within this section: a definition of the industry cluster, industry trends, a comparison of Round Rock to its regional and national competitors, Round Rock's specific observations, and the strategic implications of why or why not this industry cluster should be targeted by Round Rock. AngelouEconomics 35 Target Industry Assessment Local and regional economies do not operate in a vacuum. This report, therefore, will assess the economic strengths of Round Rock in relation to the Austin -San Marcos MSA and in comparison to the following peer communities chosen by the Advisory Commission and AngelouEconomics. Austin, Texas - The core of the Austin -San Marcos MSA, Austin has a population greater than 650,000 and is the largest community in this group. This rapidly growing community is home to the University of Texas at Austin and is the Texas State capital. Cedar Park, Texas - Located to the northwest of Austin in Williamson County, Cedar Park's population has risen over 400 percent in the last decade climbing to over 26,000 currently. Georgetown, Texas - The seat of Williamson County and north of Round Rock, Georgetown has seen significant growth during this past decade due to residential development such as Sun City Georgetown, but has yet to become an important regional employment center. San Marcos, Texas - Located south of Austin and the seat of Hays County, San Marcos is home to the Southwest Texas State University and now has a population approaching 35,000. San Marcos is also home to several large outlet malls. McKinney, Texas - The seat of Collin County and north of Dallas, McKinney grew significantly during the last decade reaching a population of 54,000 as urban growth from Dallas has spread northward. Sugar Land, Texas - Located on the southwestern edge of Houston along the Harris and Fort Bend county lines, Sugar Land has a population of 63,300 and is home to numerous chemical and petroleum - related firms. Boulder, Colorado - Known for its high quality of life and home to the University of Colorado, Boulder is located 30 miles northwest of Denver at the foot of the Rocky Mountains. Hillsboro, Oregon - The seat of Washington County and 30 miles west of Portland, Hillsboro has emerged from being a bedroom community to a technology center. Major nearby employers include Tekronix, Intel Corp., Fujitsu, Epson, and NEC. AngelouEconomics 36 Recommended Target Industries Target Industry Assessment With over 50 percent of Round Rock's labor force working outside the city, the ultimate goal of attracting new industries is to retain and create jobs within Round Rock. In addition to allowing Round Rock to meet more of the demands of its citizens for employment and consumer opportunities, promoting shorter commute times and reverse commutes from Austin may help alleviate traffic congestion, which is consistently rated as the number one concern of residents and business owners. The identification of industries to be targeted for recruitment to Round Rock is based on achieving two primary goals. First, industries should be recruited to diversify Round Rock's economic base and strengthen sectors currently deficient in the local market (weak clusters). Secondly, industries should be recruited which build on Round Rock's existing industry strengths and will further contribute to the city's specialization in that particular sector (strong clusters). While several of these sectors fall within the high tech categories, others represent industries necessary to "rounding out" Round Rock's maturing economy. In particular, target industries were selected based on the following considerations: • Public input regarding desired industries within the community • Strengths and weaknesses of Round Rock's existing industries and infrastructure (i.e. workforce, land, utilities, etc.) • Target industry trends and potential for national and global growth • Regional economic development trends • Capacity of the target industry to meet the goals of this strategic plan AngelouEconomics recommends that Round Rock focus on attracting and facilitating pronounced business activity in the following target industries: Weak clusters to be strengthened: Strong clusters to build upon • Telecommunications • Software /Multimedia/Data • Business & Professional Services • Retail • Health Services • Computer Equipment and its support industries • Semiconductors & Electronics AngelouEconomics 37 Weak clusters to be strengthened Target Industry Assessment Most of Round Rock's attention should be placed on spurring growth in the weak target industries in order to ensure a diversified local economy, thereby creating greater job opportunities and meeting local demand. Round Rock should also, however, expend adequate resources nurturing existing strong industries, such as the computer equipment, semiconductors, and electronics clusters. The health of these industries directly impacts growth in other sectors by spurring demand for ancillary industries such as health services and business and professional services, by increasing business activity in complementary industries such as software and telecommunications, and by spurring retail sales. Telecommunications: The increasing demand, nationally and globally, for data and wireless communications is expected to drive double -digit growth in the telecommunications industry for the next several years. Data communications, driven by the Internet, are superseding voice communications. Today's networks already carry as much fax and data traffic as they do voice traffic. Telecommunications companies are preparing to offer worldwide data and communications services, even in the remotest areas. Meanwhile, developing nations such as China and Russia have discovered that wireless communications allow telecommunications infrastructure to be quickly established without the expense of wiring every home and building. Comparatively, the increasing demand for wireless Internet access by both corporate users and consumers means that the interim technologies are going to flourish. This fuels not just the telecom market, but the software industry as well. While telecom mergers have increased and new firms emerged (although some of the newcomers have recently folded), the overall U.S. economic downturn has caused demand to lag yielding lower profits than expected. Industry analysts observe that investors have been tuming to cable providers for safety. Cable providers operate on more traditional business plans shielding them from major reorganization efforts or changes in strategies. High -speed data is one area where cable companies are expanding their market share at the expense of telephone companies. Moreover, pockets of successful bundling have also helped cable providers. On the other hand, some industry analysts caution over a glut of cable capacity, which could result in too many carriers selling too much capacity for too little demand. Spending on wireless services rose by an estimated 23 percent in 2000 to $57.6 billion. This increase was spread over a variety of services, including analog and digital cellular, personal communication services (PCS), paging, specialized mobile radio (SMR), and AngelouEconomics 38 Target Industry Assessment local multipoint distribution system (LMDS). Industry analysts expect that spending on professional services in support of the wireless infrastructure will grow rapidly, increasing at a 24 percent compound annual rate to $11.2 billion by 2004. Within the wireless segment, games and entertainment products are the most popular. Concurrently, mobile phones are rapidly becoming ubiquitous, with over 600 million users worldwide, dwarfing the installed service providers. The largest growth was registered by the PCS segment, which advanced by 52 percent. Industry analysts expect that PCS spending will triple and surpass cellular spending over the next four years. Round Rock, with its burgeoning population and strong related industries, is well positioned to become the regional telecommunications hub for Williamson County. In addition to manufacturing a range of equipment, materials, and systems, this sector also includes providers of intemet, cable, voice, paging, wireless and mobile services. Given that inputs include electronics, software, and semiconductor manufacturers, strengthening this industry will support other vital local businesses. Round Rock should seek to recruit telecommunication service providers and manufacturers, particularly within the wireless market. Software /Multimedia/Data: This cluster represents some of the fastest growing industries in coming years. Software development, multimedia, and data processing are driven by a variety of activities ranging from e- commerce transactions and wireless and electronic gadgets to entertainment - related games and data centers. Industry analysts expect record eamings in 2001 in the software segment of the industry and that these high eamings will continue for many years to come. Industry analysts look at three categories in the software development segment —the infrastructure for e- commerce transactions, supply chain management, and customer relations —to grow at an annual rate of 50 percent or better. These categories are expected to top $6.4 billion as companies continue to depend on software -based automation to cut costs and increase revenues. Sales in the mainframe software segment are expected to stagnate. With Y2K worries long past, global corporations are showing little interest in purchasing mainframe software unless it directly bears on their online operations. Still, e- business systems vibrate with increased demand for procurement software, supply -chain management programs, and security systems. Industry analysts foresee that computer data centers will grow from a $2.1 billion business in 1999 to a more than $9.3 billion in 2004. Data hosting accounted for six percent of the $35 billion management services market in the U.S. in 1999. By 2004, this segment is expected to account for 13 percent. The unique characteristic of data centers lies in that independent companies can build data centers large enough to host several corporations leasing space as needed in co- location sites or telco hotels. AngelouEconomics 39 Target Industry Assessment Important to Round Rock, this cluster relies more on a highly skilled, well -paid work force and less on massive infrastructure needs. Not only do these firms help stimulate growth in supporting business and professional services, but they also feed directly into computer equipment and semiconductor development and manufacturing. Although many software /multimedia/data companies have located regionally within Austin, Round Rock is well positioned to target these companies with direct marketing efforts highlighting the city's available real estate, skilled labor force, and strong related industries. The city will also benefit from nurturing the entrepreneurial efforts of its many existing small firms. Business & Professional Services: Possibly more than any other cluster of industries, business and professional services firms are critical to a well- rounded economy. Firms within these sectors provide services utilized by companies of every size as well as public entities and private household consumers. With a current cluster ratio of only 0.38, Round Rock has the lowest ratio of employment in these sectors compared to its regional and state competitors. The city's business owners and residents are undoubtedly going elsewhere to meet the majority of their needs. Recruiting business and professional services firms should be a priority of the city's business attraction efforts. This strategy should focus not only on attracting new companies, but also assisting in the expansion of existing local providers. Residents with offices in Austin or other communities should be encouraged to relocate to Round Rock. The addition of new office space at La Frontera should assist in the recruitment of such firms. Retail: Generators of retail sales are among Round Rock's most important businesses. First, the city relies heavily on retail sales tax rebates to fund transportation and economic development initiatives as well as subsidize local property taxes. Secondly, the ability to purchase retail goods and services within one's own community has become increasingly recognized as a quality of life issue. Round Rock residents have met most of their needs in recent years in the neighboring communities of Austin and Cedar Park. Perhaps more than any other industry, retail follows demographics and consumer preferences. Although the population growth of the past decade occurred faster than the private sector could keep up, new developments, such as La Frontera Village, are seeking to correct this gap in supply and demand. As the major city in one of the most rapidly growing counties in the country, Round Rock is positioned to become the regional retail center for much of Williamson County. The city should seek to market its favorable socioeconomic demographics to private developers and support desirable retail growth along the city's interstate and AngelouEconomics 40 Target Industry Assessment commercial corridors. The city should also focus efforts on attracting product ordering operations which market directly to end - consumers, such as Dell and Sears, to capture additional retail sales tax revenues. Health Services: Like retail, the supply of health services to meet the needs of Round Rock's growing population has struggled to keep up with demand. The Round Rock Medical Center recently completed a $30 million expansion in an effort to fill the gap and is considering additional expansions. As the country's elderly population grows at a faster rate than the general population, the demand for a variety of medical services will increase dramatically over the next decade. Nearly 14 percent of jobs created in coming years are expected to be in this industry, including twelve out of the 30 projected fastest growing occupations. Although hospitals comprise less than two percent of all private health services establishments, they employ nearly 40 percent of all industry workers. When government hospitals are included, the proportion rises to almost half the workers in the industry. Cost containment in the health services industry is important as shown by the growing emphasis in providing care on an outpatient, ambulatory basis, limiting unnecessary or low priority services, and stressing preventive care. A recent phenomenon in the health services industry is the formation of Integrated Delivery Systems (IDS) where two or more segments of the industry combine to increase delivery efficiency through streamlining of primarily financial and managerial functions, although this situation has not proven popular in the Austin area. Physicians are also more likely to be salaried employees of group medical practices, clinics, or health networks than in the past. The development of in -home medical technologies, substantial cost savings, and patients' preference for care in the home environment have helped this once small segment of the industry become one of the fastest growing in the U.S. economy. Although most jobs in health services provide clinical care, there are many in occupations with other functions as well. Numerous workers in executive, administrative, managerial, and support positions keep operations running smoothly. While many health services managers have a background in a clinical specialty or training in health services administration, a growing number of these professionals enter the industry with general business education. While the demand for health services is certainly present, the infrastructure typically associated with a large health services sector is currently lacking in Round Rock. Without medical research facilities, skilled technical labor, and higher education, Round Rock may have difficulty attracting an additional major medical institution beyond its current hospital. The city should instead focus its AngelouEconomics 41 Target Industry Assessment efforts on attracting smaller scale specialty health care centers, such as medical group practices, as well as assisting the Round Rock Medical Center in future expansion plans. Although medical supplies are not a primary target industry, building up Round Rock's health services sector will also support growth in this cluster as well. Other weak clusters: While the financial services sector has a weak presence in Round Rock, this industry should not be considered a primary target for business attraction efforts. According to industry analysts, the U.S. has already seen a 40 percent reduction in the number of banking institutions since 1990. Increasing problem loans and compressed profit margins, combined with a slower economy, are expected to create a much more challenging environment for the financial industry. Although these firms are vital to the local economy, the number of financial institutions is expected to decrease by 75 percent over the next five to ten years as mergers and acquisitions, changing business practices, technological innovations, and shifting economic conditions transform the industry. Similarly, the megamergers, acquisitions, and underwriting of bonds and equities are expected to slow. On the other hand, there are more investable assets than ever before. The percentage of U.S. households that own equities has jumped from 32.5 percent in 1989 to 48.2 percent in 1999. The recent stock market downtum, however, is slowing the inflow of new money. Increasing loan losses and pressure on profits are raising investors' concem about banks. Nevertheless, industry analysts foresee that the number of securities, commodities, and financial services related jobs will increase much-faster than the average for all occupations through 2008. Round Rock would be better served by nurturing existing institutions rather than attempting to attract new firms to the city at this time. Strong clusters to build upon Computer Equipment & Support Industries: The Round Rock location of Dell Computer Corporation, the current world leader in the PC market, has been critical to the city's recent economic success. Although recent layoffs have prompted concem over the city's dependence on Dell for employment and sales tax revenues, Dell will remain an integral part of the local economy for many years. While PC sales appear to have stabilized in the U.S. market, new technological innovations and ever - rising global demand will continue to drive the long -term high growth prospects of this dominant industry. New investment in research and development could be used to boost market demand while maintaining or even increasing price levels. PC sales in the Asia - Pacific region and Europe are likely to grow considerably more than in the North American market. AngelouEconomics 42 Target Industry Assessment Although recruiting another major computer equipment corporation such as Dell to Round Rock is unlikely, the attraction of support and complementary industries to take advantage of the economies of scale and specialized skills already present locally would further strengthen this sector. The city should focus on attracting firms involved in the research and development of new computer technologies and assisting existing suppliers in expanding into other markets beyond Dell. Customer support, sales, and product order operations are also important targets. Specific additional support and complementary industries include printed circuit board manufacturers, metal fabrication, data processing and storage devices, computer integrated system designers, programmers, fulfillment companies, and software developers and engineers. Providing a greater diversity of employment opportunities within Round Rock's most important industry will help cushion the inevitable downturns —and upswings —of the industry's business cycles. For example, Sears.com chose a Round Rock location for its new e- commerce center specifically to absorb skilled workers recently laid off from Dell. Recruiting more firms to do this would be beneficial to the community. Semiconductors & Electronics: Like the computer equipment industry to which these high tech sectors have historically been so closely related, semiconductor and electronic firms have witnessed a slight downtown in 2001 with revenue growth expected to decline by almost 17 percent. High inventory levels have hurt the industry, particularly networking companies like U.S. -based Cisco Systems. High inventory levels are virtually worthless because they become quickly outdated before they can be sold. In its quarterly analysis, Semiconductor Equipment and Materials Intemational, the global industry association, has reported a book -to -bill ratio of 0.42, the lowest in 10 years. The ratio reflects a three -month moving average that compares the number of new orders placed for semiconductor equipment with the amount of new equipment shipped to customers. The figure of 0.42 means that for every $100 worth of equipment shipped, only $42 were registered in new orders. A declining ratio is likely a result of order cancellations. However, increasing consumer demand for cellular phones, personal data organizers, digital cameras, MP3 players, and a range of other electronic products is expected to reverse this trend. For example, as cars are becoming increasingly wired with electronic systems capable of directing drivers and entertaining passengers, demand for semiconductor devices increases. Similar innovations are occurring throughout society —from refrigerators, which will generate grocery lists to wearable computers. Similarly, storage is likely to become one of the fastest growing segments of the semiconductor industry as more people store addresses, phone numbers, and calendars in digital gadgets. Analysts foresee revenue in emerging markets for products such as switches, servers, digital cameras, base stations, and MP3 players to show double -digit eamings in 2001. Consumer demand for various wireless and AngelouEconomics 43 Target Industry Assessment digital gadgets has already impacted the semiconductor's inventories, which are showing signs of shrinkage. Similar to the computer industry, the semiconductor and electronic sectors are well positioned for long -term growth despite short-term market fluctuations. Employment within these sectors includes the highest paid, most specialized jobs in the current economy. Given that so few communities in the world can claim a specialization in this cluster, Round Rock should seek to strengthen these industries locally. Despite their extensive resource needs, the city should seek to attract semiconductor wafer fab facilities and additional electronic component manufacturers and other industry suppliers. Building these sectors will also be beneficial to the city's telecommunications and software /multimedia/data industries as well. Examples of specific support industries include printed circuit board manufacturers, equipment manufacturers, metal fabrication, industrial valves, pneumatic equipment, environmental engineering firms, and household electronics. Other strong clusters: While housing & construction and industrial supplies are analyzed as strong and important clusters in the local economy, AngelouEconomics does not regard them as viable short -term target industries for Round Rock. Housing & construction is inherently dependent on market demand and the success of other primary industry clusters. Industry trends regarding ongoing transformations within the industrial supplies sector do not suggest significant long -term employment growth potential. Although industrial suppliers in general are not identified as target industries, certain high -value added sectors within industrial suppliers would be desirable to recruit to Round Rock. These include companies within such areas as analytical instruments, measuring and controlling devices, and environmental control systems. Most industrial supply markets are influenced by the health of the end -user markets, the overall U.S. economy, and by consumer spending trends. Environmental concerns and technological innovations will continue to push for better and more efficient products. While productivity is expected to continue to grow, employment has been declining over the past decade and expected to shrink. Analysts foresee the industry to register negative growth in 2001 as a result of the weakness in key consuming industries, including the softening housing market as well as the auto industry. However, foreign trade is expected to continue expanding, thereby increasing demand for some industrial supply products. In summary, the industrial supply cluster has segments undergoing changes due to technological improvements and environmental concerns. These changes will result in better and more efficient industrial supplies products. While productivity is expected to increase, overall employment may not. As the automation process becomes AngelouEconomics 44 more productive and less dependant on coolants and harmful fluids, manufacturing employment will decrease while employment in research and technological development increases. Other Economic Considerations Target Industry Assessment Bio Technology: While the high tech sectors will continue to prosper and expand, analysts expect the next high growth industries to be within bio technology. Round Rock is well positioned to benefit from regional economic development efforts to attract these firms to the area, an effort currently focused on the 1 -35 corridor from San Antonio to Austin. These industries include such fields as pharmaceuticals, medical suppliers, bioengineering, biological products, medicinals and botanicals, genetics, and commercial physical research. While the Austin area is lacking major medical research facilities, regional leaders hope the bioengineering and research programs of The University of Texas at Austin combined with the area's high tech reputation will draw these industries. While Round Rock would benefit from capturing these high paying jobs, bio tech is not a target industry the city can pursue independently of the regional effort. However, bio tech firms choosing to locate in the Austin area may be attracted to Round Rock's lower cost sites, existing technology infrastructure, and mature, highly skilled labor force. City leaders should remain involved in this regional effort and pursue appropriate opportunities as they arise. Higher Education: While not analyzed as a specific target industry, higher education is an important sector missing in Round Rock's local economy. Identified as a goal by AngelouEconomics in the city's 1996 strategic plan, Round Rock leaders have pursued these prospects over the past five years. These efforts, coordinated through the Multi- Institutional Teaching Consortium (MITC), should continue. AE still believes the capacity to provide higher education within the city will provide important economic benefits, including retaining students locally and promoting a higher level of workforce development. Entertainment Venues: Again, while not analyzed as a target industry, entertainment venues are another important area in Round Rock often cited as inadequate. The Round Rock Express has met a vital need in the city for families seeking "something to do." In addition to traditional venues such as theaters and bowling alleys, other desired entertainment opportunities may include performing arts groups, cultural venues, more athletic activities, and a range of community events. While family - oriented activities currently dominate in Round Rock, nightlife choices for the city's growing single and tourism population may also eventually be sought. While AngelouEconomics 45 Target Industry Assessment opportunities to recruit these venues to Round Rock should be pursued by the city when appropriate, entertainment providers are often a difficult "target industry." Much like retail, these activities tend to follow population and consumer preferences. However, unless done on a large scale, many family- oriented entertainment venues are not as profitable as retail outlets and therefore require some degree of subsidization. The most effective means of creating more entertainment options in Round Rock will likely be through the grassroots organization of residents and public and private sector leaders working together to identify and pursue opportunities. For example, entertainment venues should be included as a major part of any future Downtown planning efforts. AngelouEconomics 46 Industry Cluster Analysis Methodology Clusters are highly integrated groups of businesses with strong vertical and horizontal linkages. Cluster definitions achieve a much higher level of detail than the standard classification of the 10 major industries (manufacturing, services, etc.). Clusters categorize businesses according to their final product and how these products are related to each other and integrated along the vertical supply chain. This method of classification provides a much more accurate and detailed examination of industries than the method currently used by most federal and state agencies, which disseminate data. AngelouEconomics Target industry Assessment Strategic Linkages Stafford Cluster Formati Distribution Components INDUSTRY CLUSTER Business Services Traditionally, the economic growth of regional economies has been described in terms of the growth of a region's "basic" (or primary) industries. These industries typically export their goods or services outside the region, supporting ancillary industries S U P L I E R LINKAGES such as retail, housing construction, and personal services. In addition, primary industries bring in outside money through their exports. The locational distribution of these facilities is largely attributed to natural advantages (e.g., natural resources and climate), cost factors (e.g., distance to market, labor costs), and existing transportation infrastructure. However, new economic structures and the globalization of economies have put these Competitive Tax Climate Education & Training Institutions Available Available Skilled Labor Capital Fnandng Material Inputs ECONOMIC INFRASTRUCTURE High Quality of Life Physical InfrasWdure competitive factors in a new perspective. Increased competition and the emergence of the technology industry have altered the location requirements of many businesses. Technology firms are increasingly drawn to regions because of 47 Target Industry Assessment formal and informal relationships with public sector institutions (such as education and training facilities) that can supply a trained pool of workers. These new linkages establish "developing industrial clusters" in which new businesses build relationships with existing specialized supplier firms throughout a metropolitan region. These clusters then attract additional supplier firms and supporting business from outside of the area. By creating a "critical mass" of production, labor, and information, related original equipment manufacturers (OEMs) and supplier firms are attracted to these developing cluster regions to take advantage of the existing human and physical infrastructure. To assess the strength of a cluster in a regional economy, the location factors are calculated by comparing the cluster's share of total local employment to the cluster's national share. This quotient will yield a value generally between 0.00 and 2.00, where 1.00 demonstrates an equal share percentage between the local and national economies. Cluster location factors greater than 2.00 indicate a particularly strong cluster agglomeration, while cluster ratios less than 0.50 indicate extremely weak clusters. The first section of the analysis will focus on strong clusters, while the second section identifies clusters that are weak but remain important to Round Rock's economic development efforts. For each cluster, AE has divided the analysis into the following areas: • Cluster definition • Industry Trends • Regional & National Competitor Assessment • Round Rock Findings & Observations • Strategic Implications AngelouEconomics 48 Round Rock's Strong Clusters Not surprisingly, Round Rock's highest cluster concentrations are found in the technology sector, particularly Computer Equipment, Electronics and Semiconductors. These cluster concentrations are followed by Housing & Construction and Industrial Supplies, which generally are considered to be ancillary industries following the success of other clusters. Thirty-six percent of Round Rock's jobs are found in the technology sector — the second highest share compared to its regional and national competitors. Hillsboro, Oregon has the highest share of technology - related jobs, or nearly 41 percent. Target Lnaustry Assessment Technology Employment Comparison, 2001 Technology % of Total Fmpinyment Fmpinyment 14,495 36.0% 82,876 14.5% 288 3.3% 739 5.0% 4,871 17.0% 435 1.8% 6,440 13.8% City /Metro Regional Round Rock Austin Cedar Park Georgetown McKinney San Marcos Sugar Land National Boulder 17,699 14.8% Hillsboro 20,820 40.9% Metro /State Williamson County 16,565 19.3% Austin -San Marcos MSA 99,949 13.9% Texas 534.634 5.1% Source: AngelouEconomics, Inc.; Dun & Bradstreet AngelouEconomics 49 .,.. „. H 7.95 Vow „. -- 4.27 3.07 1.12 ■ 3.21 327 0.74 1.10 ® © 9.03 3.75 0.39 3.05 ,_ Round Rock Williamson Austin MSA Texas Co. Austin Boulder Cedar Park Georgetown Hillsboro McKinney San Marcos Sugar Land 159 455 3,052 26,844 14.495 16.565 99,949 534,634 2,401 656 81 72 136 103 35 213 82,876 17,699 288 739 20,820 4,871 435 6,440 Although most of its regional and national peers display sizeable technology concentrations, Round Rock has the second highest cluster ratio, following Hillsboro, Oregon. Round Rock's cluster ratio of 7.95 indicates a high level of specialization in the technology sector relative to the nation. The strong clusters analyzed in this report were selected based on their current impact on the local economy, their levels of exports outside the region, local employment, and national trends. National & Regional Comparison - High Technology aster Ratio Finns Employees Natio d Regional Peers Target inaustry /Assessment AngelouEconomics 50 Cluster Distribution - Selected STRONG Clusters Round Rock, Austin -San Marcos MSA, & Texas (2001) Round Austin -San Marcos Texas Cluster Rock MSA Computer Equipment 27.05 4.23 0.91 Electronics 6.46 2.23 0.99 Semiconductors 4.43 14.53 2.01 Housing & 1.45 1.20 1.18 Construction Industrials Supplies 1.15 0.51 0.93 Source: AngelouEconomics.; Dun & Bradstreet AngelouEconomics Target Industry Assessment Cluster Location Factor 0.00 1.00 2.00 3.00 4.00 5.00 6.00 kftimitdoi ■ Round Rock • Austin -San Marcos MSA III Texas Cluster Strength Weak 4 0.00 Average Strong 1.00 2.00 51 Metro and State Cluster Employment, 2001* target .i.naustry Hssesstn Round Rock Williamson County Austin-San Marcos MSA State of Texas Emol. No. s. R Empl. No. Bus. Ratio Emol. No. Bus. .1,3_atk Emol. No. Bus. R ati o Comp. Equip. 12,196 65 27.05 12,679 175 13.20 34,023 966 4.23 107,167 8,734 0.91 Electronics 1,016 7 6.46 1,584 31 4.72 6,274 122 2.23 40,668 829 0.99 Semiconductors 390 3 4.43 395 6 2.10 22,847 63 14.53 46,341 195 2.01 Govemment 3,738 21 1.86 5,609 77 1.31 62,487 775 1.75 510,898 8,210 0.97 Housing & Constr. 3,046 319 1.45 8,892 1,221 1.98 44,935 5,198 1.20 648,141 72,605 1.18 Eat/Drink 2,158 127 1.19 4,210 358 1.09 33,028 2,435 1.02 502,898 39,415 1.06 Ind. Supplies 1,340 42 1.15 2,190 120 0.88 10,594 502 0.51 284,344 9,809 0.93 General Svcs. 1,298 245 1.07 3,050 799 1.18 20,155 4,596 0.93 362,097 83,067 1.14 Telecomm. 632 30 0.94 1,292 82 0.90 17,932 644 1.50 200,559 7,840 1.14 Retail 4,020 470 0.94 10,900 1,715 1.19 71,529 9,256 0.93 1,336,587 160,790 1.19 Ind. Machinery 213 9 0.91 606 16 1.21 6,320 74 1.51 64,449 1,825 1.05 Consumer Goods 239 31 0.59 673 95 0.78 3,968 425 0.55 60,960 5,876 0.57 Software 261 54 0.57 615 161 0.63 18,873 1,257 2.32 139,899 9,246 1.17 Medical Supplies 125 7 0.53 949 13 1.87 3,623 81 0.85 39,553 995 0.64 Health Services 1,644 143 0.49 4,488 333 0.63 45,925 2,643 0.77 827,649 42,272 0.95 Wholesale 919 192 0.47 2,907 539 0.70 34,517 3,113 1.00 585,372 57,887 1.16 N.E.C. 2,192 156 0.43 7,437 567 0.68 73,019 3,906 0.80 1,147,446 67,377 0.86 Bus. & Prof. Svcs 2,407 563 0.42 6,748 1,658 0.56 110,669 13,700 1.09 1,466,470 161,273 0.98 Hotels & Entertain. 525 81 0.39 1,267 230 0.45 21,772 1,640 0.91 249,871 22,186 0.72 Financial Svcs. 673 119 0.38 2,900 319 0.76 26,918 2,376 0.84 423,395 36,567 0.90 Agriculture 260 66 0.36 1,602 409 1.04 6,572 1,587 0.51 153,005 34,838 0.81 Print & Publish 162 31 0.32 479 98 0.44 7,075 734 0.78 96,062 8,492 0.72 Materials Supplies 239 24 0.29 2,007 88 1.15 8,271 377 0.57 165,490 6,890 0.77 Logistics & Distrib. 401 76 0.26 1,267 255 0.39 12,052 1,281 0.44 415,599 28,042 1.03 Utilities 79 9 0.21 330 38 0.41 7,128 213 1.07 166,177 4,644 1.70 Food Processing 38 6 0.08 66 11 0.07 2,595 131 0.31 100,794 2,495 0.81 Apparel & Textiles 22 12 0.06 79 42 0.09 775 199 0.11 61,629 3,390 0.60 Natural Resources 13 8 0.05 403 51 0.69 2,521 332 0.51 237,018 12,768 3.29 Transp. Equip. 7 3 0.02 117 11 0.12 352 46 0.04 41,046 1,344 0.35 Arms - - 0.00 30 1 0.33 39 5 0.05 4,224 108 0.38 Aerospace - - 0.00 7 2 0.02 1,770 12 0.64 45,036 317 1.10 TOTAL EMPL. 40,253 2,919 85,778 9,521 718,558 58,689 10,530,844 900,326 Cluster Source: AngelouEconomics, Inc , Dun & Bradstreet; 'Sorted by Round Rock's cluster ratio in descending order AngelouEconomics 52 Regional Competitors Cluster Employment, 2001* Cluster Target inaustry Assessment Austin Cedar Park Georgetown San Marcos Emoi, No. Bus. R Emo1• No. Bus. Ratio Emo1. No. Bus. Ratio Emoi. No. Bus. Ratio Comp. Equip. 21,270 734 3.33 112 33 1.16 142 24 0.85 28 10 0.10 Electronics 4,425 80 1.99 79 7 2.35 411 9 7.06 54 2 0.56 Semiconductors 22,447 55 18.00 - 0.00 - 1 0.00 - 0.00 Govemment 55,451 596 1.95 91 6 0.21 1,292 28 1.74 298 30 0.24 Housing & Cons 27,675 2,837 0.93 837 160 1.86 1,766 274 2.27 2,142 183 1.65 Eat/Drink 25,138 1,664 0.98 610 56 1.57 927 73 1.38 1,866 139 1.67 Ind. Supplies 6,632 285 0.40 62 10 0.25 493 31 1.14 1,048 15 1.45 General Svcs. 14,889 3,015 0.87 451 118 1.74 477 155 1.07 725 202 0.97 Telecomm. 16,706 513 1.76 20 9 0.14 123 16 0.50 132 10 0.32 Retail 51,611 5,773 0.85 2,396 349 2.60 1,912 365 1.20 3,402 491 1.28 Ind. Machinery 5,562 42 1.68 300 1 5.98 1 1 0.01 39 2 0.27 Consumer Gooc 2,788 233 0.48 27 18 0.31 29 12 0.19 59 14 0.24 Software 18,028 1,019 2.79 77 32 0.79 63 22 0.37 221 13 0.79 Medical Supplie 2,974 57 0.88 1 1 0.02 10 1 0.11 17 3 0.12 Health Services 37,390 2,026 0.79 253 43 0.36 1,576 85 1.28 1,811 118 0.88 Wholesale 29,840 2,147 1.09 237 67 0.57 592 104 0.83 461 91 0.39 N.E.C. 52,349 2,596 0.72 971 78 0.89 1,584 141 0.84 4,873 198 1.55 Bus. & Prof.Svt 97,018 10,626 1.20 996 227 0.82 1,600 402 0.76 3,536 391 1.01 Hotels & Enterte 18,504 1,087 0.98 189 36 0.66 321 49 0.65 618 89 0.75 Financial Svcs. 23,962 1,809 0.95 113 45 0.29 322 62 0.49 738 88 0.67 Agriculture 3,960 707 0.39 165 29 1.07 345 84 1.29 140 54 0.31 Print & Publish 6,100 554 0.85 115 21 1.06 101 15 0.54 208 17 0.67 Materials Suppli 4,565 198 0.39 204 9 1.17 278 23 0.92 658 22 1.31 Logistics & Distr 9,186 771 0.42 33 17 0.10 254 53 0.45 304 34 0.32 Utilities 5,967 105 1.13 103 3 1.29 50 8 0.36 239 13 1.04 Food Processini 2,213 97 0.33 5 1 0.05 23 4 0.13 1 1 0.00 Apparel & Textil 484 127 0.09 9 5 0.11 12 8 0.08 71 5 0.29 Natural Resourc 1,751 196 0.45 91 4 1.54 158 15 1.55 109 10 0.64 Transp. Equip. 120 27 0.02 70 1 0.72 7 3 0.04 60 1 0.22 Arms 3 2 0.01 - - 0.00 30 1 1.91 3 1 0.11 Aerospace 823 8 0.37 1 1 0.03 6 1 0.10 940 2 9.78 TOTAL EMPL. 569,831 39,986 8,618 1,387 14,905 2,070 24,801 2,249 Source: AngekwEconomics, Inc., Dun & Bradstreet; 'Sorted by Round Rock's cluster ratio in descending order AngelouEconomics 53 National Competitors Cluster Employment, 2001* Cluster Target Lnaustry Assessment McKinney Sugar Land Boulder Hillsboro Emol. No. Bus. Ratio Empl. No. Bus. Ratio Eri.pl No. Bus. Ratio Em ul. No. Bus. Ratio Comp. Equip. 2,455 40 7.64 2,516 80 4.82 8,541 211 6.38 4,829 48 8.47 Electronics 2,126 7 18.97 2,065 6 11.33 216 13 0.46 651 23 3.27 Semiconductors 12 2 0.19 - - 0.00 275 7 1.05 13,537 8 121.43 Govemment 1,049 31 0.73 680 16 0.29 7,697 85 1.29 2,233 28 0.88 Housing & Constr. 2,399 281 1.60 1,685 285 0.69 3,462 559 0.55 2,836 489 1.06 Eat/Drink 1,368 100 1.06 1,967 150 0.93 6,403 330 1.19 1,812 106 0.79 Ind. Supplies 439 25 0.53 522 43 0.39 2,132 100 0.61 1,909 76 1.29 General Svcs. 957 204 1.11 1,277 296 0.91 2,351 522 0.65 853 200 0.56 Telecomm. 191 20 0.40 1,223 34 1.58 3,766 116 1.89 871 19 1.03 Retail 3,310 526 1.08 5,845 714 1.17 10,453 1,069 0.82 3,714 437 0.68 Ind. Machinery 18 3 0.11 54 9 0.20 67 9 0.10 26 7 0.09 Consumer Goods 99 21 0.34 81 27 0.17 377 73 0.31 535 31 1.04 Software 87 34 0.27 636 93 1.20 4,901 309 3.62 932 38 1.61 Medical Supplies - 2 0.00 240 8 0.87 2,201 44 3.12 40 5 0.13 Health Services 1,632 138 0.69 1,696 258 0.44 6,740 741 0.68 2,003 131 0.48 Wholesale 870 147 0.63 2,038 266 0.91 9,953 407 1.73 1,231 162 0.50 N.E.C. 2,785 175 0.77 4,121 269 0.70 10,040 619 0.66 3,208 210 0.50 Bus. & Prof. Svcs 3,579 580 0.88 11,015 906 1.67 27,690 2,970 1.64 4,841 485 0.67 Hotels & Entertain. 665 65 0.70 1,018 84 0.66 2,654 271 0.67 682 67 0.40 Financial Svcs. 1,003 127 0.79 950 202 0.46 2,165 378 0.41 741 101 0.33 Agriculture 226 62 0.44 587 99 0.70 792 161 0.37 875 159 0.96 Print & Publish 124 28 0.34 142 33 0.24 2,790 163 1.86 231 38 0.36 Materials Supplies 1,699 27 2.92 1,943 36 2.05 949 54 0.39 1,005 33 0.97 Logistics & Distrib. 480 53 0.44 468 85 0.26 1,615 141 0.35 475 85 0.24 Utilities 123 10 0.46 403 17 0.93 320 27 0.29 273 8 0.58 Food Processing 527 13 1.56 1,477 8 2.68 456 26 0.32 42 7 0.07 Apparel & Textiles 180 15 0.64 21 12 0.05 293 43 0.25 19 9 0.04 Natural Resources 78 16 0.40 1,921 54 6.02 142 31 0.17 398 12 1.14 Transp. Equip. 192 5 0.60 45 6 0.09 48 10 0.04 85 5 0.15 Arms - 0.00 2 1 0.04 3 2 0.02 - 0.00 Aerospace 1 0.00 - - 0.00 9 3 0.02 46 3 0.23 TOTAL EM PL. 28,673 2,758 46,638 4,097 119,501 9,494 50,933 3,030 Source' AngelouEcanarnics, Inc., Dun & Bradstreet `Sorted by Round Rock's cluster ratio in descending order AngelouEconomics 54 Computer Equipment Definition — The Computer Equipment cluster is comprised of firms producing computer storage devices, computer terminals, electronic components, computer integrated system design, search and navigation equipment, and miscellaneous computer peripheral equipment. This cluster is classified as a high technology manufacturing industry. The computer equipment cluster is supplied primarily by semiconductor, electronics, and equipment and components businesses. Software services, metal fabrication and industrial supplier firms are also a strong component in the supply chain. SupPka Industry Trends - The computer equipment industry, particularly the personal computers sector, is experiencing a dip in its business cycle registering lower revenues than expected. Industry analysts attribute this decline in market demand to three major factors. First, a macroeconomic downtum in the U.S. has prompted consumers to Foundation AngelouEconomics Target Inaustry Assessment Computer Equipment Cluster Orderanon k Metal Fabrtcation Weis be more cautious with their discretionary spending. Second, the lack of recent innovative improvements in PCs has made the / Economic hr Cargo& product less desirable within the U.S. market, which is already wraswrrrr,e Transport saturated with current technology. Finally, low demand has triggered a price war lead by Dell in which computer prices are being driven down to increase market share. Price wars can have a purging effect on cluttered markets and, at least in the short term, benefit consumers. This method, however, can also lead to lower profit margins as recently experienced by Dell, which has concemed shareholders and lowered investor confidence in the industry. Innovation is needed to make current PCs obsolete, thereby creating new market demand. In addition, as more businesses tap into e- commerce, the demand for innovative and secure computer equipment will likely increase as well. In the long term, the computer / Computer Equipment Manufacture and assembly of computer equipment, componen , and peripherals Semi- conductors Printing & Advertising Technical Labor Software Services / Electronics & Electrical Apparatus Freight & Storage Low Inventory Taxes �xa / Computer Equipment Low Property Tax Burden 55 27.05 13.20 4.23 ■ 0.91 6.38 3.33 1.16 0.85 immi Iwo, 8.47 7.64 0.10 s Round RockWilliamson Austin MSA Texas Co. Austin Boulder Cedar ParkGeorgetown Hillsboro Mcl]nney San MarcosSugar Lan 65 175 966 8,734 12,196 12,679 34,023 107,167 734 211 33 24 48 40 10 80 21,270 8,541 112 142 4,829 2,455 28 2,516 equipment industry is well positioned to supply a steady and growing demand for its products thus positioning this industry in the basket of globally growing clusters well into the future. National & Regional Comparison - Computer Equipment Cluster Ratio Firms Employees National d Re Peers Target Inaustry Assessment AngelouEconomics 56 Target inaustry assessment �� Q�1 �ptoYeirs��������� 11��11111 \11111' nDet# r?� 6rt ,C+o rpora t i� bh,` a: i;T.`;ffr'ahirfolo 1 l ill,!11�, ,n iati\os' Sri;fnG'�111111�����`11111���11tt iai ;Ca►isu� #iktg Go'tp ∎\ 1Trn i 1 Tect�nologies 1; #nc111ii Round Rock Findings & Observations - Round Rock's cluster ratio of 27.05 is by far the highest among its regional and national peers, followed by Williamson County's location ratio of 13.20. Round Rock's strong location quotient in the computer equipment cluster reveals two distinct features: (1) the city's high specialization relative to the nation and its peers, and (2) a high share of exports from this industry that increase local revenue. Approximately 12,196 people are employed in the existing 65 computer equipment firms, or 30 percent of total jobs. Dell Computer Corporation employs the majority of workers in this cluster, approximately 10,000 people, or nearly 25 percent of total jobs in the city. Excluding Dell, the top four companies employ nearly one percent of total jobs. An overall high share of computer equipment jobs points to a labor market weakness, where the labor force is highly sensitive to the computer industry business cycle. In addition, labor market sensitivity is even more acute when one company such as Dell holds a quarter of total employment. (Note: Although Dell is classified for this analysis within the Computer Equipment cluster, its activities in Round Rock are primarily in sales, customer service, and technical support. Most of Dell's manufacturing facilities are located in North Austin. Dell is included as a vital component of the Computer Equipment cluster because it has attracted so many support industries to Round Rock, including computer equipment, electronics, industrial supplies, industrial machinery, software, and business and professional services.) Strategic Implications - An over - reliance on a single cluster to provide the highest share of jobs could be treacherous as the industry experiences the highs and lows of market demand. This can be particularly tricky for a young community such as Round Rock. However, computer equipment is one of the strongest clusters achieving economies of scale with a very high potential to attract similar businesses and spur the growth of support industries. Dell, the number one firm in this extremely competitive industry, is an ideal company to have within the community. Dell has a great corporate image, is part of a long -term growth industry, and has great leadership and community involvement. In sum, Round Rock can bank on the success of the computer industry cluster, focus its efforts on attracting related industries, such as telecommunications and software /multimedia /data, and nurture the growth of existing support services. Sears, for example, recently located its new e- commerce /customer center (Sears.com) in Round Rock to take advantage of the skilled labor force already present in the city because of Dell. AngelouEconomics 57 Semiconductors & Electronics Definition — The combined Semiconductors & Electronics clusters are closely interrelated and include firms engaged in the design and manufacturing of integrated circuits, microprocessors, logic devices, chipsets, and memory chips for a wide variety of users including telecom, computers, networking, wireless, and other instrumentation industries. The combined semiconductors and electronics cluster is classified in the manufacturing side of the high technology sector. Inputs to the manufacture of electronic components are electronic capacitors and resistors, electronic transformers, electrical equipment and supplies, and printed circuit boards. Supplier industries supporting the semiconductor and electronics clusters include software services, plastics, chemicals, industrial machinery and supplies, computer equipment, and metals. Industry Trends — The semiconductor & electronics industry plays a key input role in the computer equipment industry cluster. Given that the PC industry consumes 50 percent of all integrated circuits, there is a direct relationship between demand for PCs and demand for semiconductors and other electronic equipment. This type of inter - industry relationship places sensitivity on the semiconductor and electronic cluster to PC market demand. However, the PC AngelouEconomics Target Industry Assessment Semiconductor & Electronics Software Suppliers services Foundation Suppliers Semiconductor Electronics Cluster Printed circuit boards, tubes, capacitors, resistors, components r Plastics Semico- ductors Fabricated Metals Printing Utilities Chemicals Computer Equipment Real Estate Electronic Component 1 Financial Services / '1 // (/ // Economic Transportat o Capital Researc 1 Education & Low Prop industry is no longer the sole driver of the semiconductor market. Infrastructure Availabili Centers/ Training / Tax Burd Although PC sales may continue to decline, the semiconductor industry could still expand because of the increasing demand for personal data organizers and other electronic gadgets. A shift in demand for semiconductor and electronic devices resulting from increased demand for digital and wireless gadgets bodes well for future industry growth. 58 ,.„ CI LI JIM.. 45.69 12.23 5.73 6.65 7.73 4.52 7.26 3.78 1.36 R 0.67 1.50 0.36 [ 1 . Round RockWilliamson Austin MSA Texas Austin Boulder Cedar ParkGeorgetown Hillsboro McKinney San MarcosSugar Lan( Co. 10 37 185 1,024 135 20 7 10 31 9 2 6 1,406 1,979 29,121 87,009 26,872 491 79 411 14,188 2,138 54 2,065 National & Regional Comparison - Semiconductors & Electronics Cluster Ratio Firms Employees National & Regional Peers Target Industry Assessment AngelouEconomics 59 Round Rock Findings & Observations - Round Rock's combined Semiconductors & Electronics cluster ratio of 5.73 is higher relative to Williamson County, Texas and several of its regional and national peers, but significantly lower then Hillsboro's 45.69, McKinney's 12.23, Austin's 7.73, and Sugar Land's 7.26. Nevertheless, Round Rock's cluster ratio indicates a sizeable presence of companies engaged in the business of designing and producing semiconductor equipment and inputs to the manufacture of electronic components. Round Rock's strong cluster ratio points to the city's specialization relative to the nation and several of its national and regional peers. The city has approximately 1,406 people employed in 10 semiconductor and electronics firms, or 3.5 percent of its total employment. The top three semiconductor firms employ 390 people, or one percent of total jobs in the city. Cypress Semiconductor employs 373 people, or more than 26 percent of the 1,406 semiconductor and electronics jobs. The top six electronics firms account for one percent of total jobs in Round Rock. Tyco Printed Circuit Group employs approximately 225 people, while DuPont Photomasks, Inc. follows with a distant 140 jobs. ?arget inaustry Assessment SEMICONDUCTORS Top Employers Cypress Semiconductor Layson Semiconductor Inc EPT ELECTRONICS Top Employers Tyco Printed Circuit Group Du Pont Photomasks Inc Photronics Weed Instruments Techdyne Inc Perry Group Inc Tralas Technologies Inc Acrologic Corporation Strategic Implications — Although a relative low share of total employment is attributable to the composite semiconductor and electronics cluster, the industry has played a major role in Round Rock's recent economic success. With more than three percent of the city's jobs found in these clusters, the city is well positioned in the region to attract similar businesses wanting to take advantage of a skilled labor force and economies of scale. Only a handful of cities can excel at this industry due to the large investments per plant, hence to have some degree of specialization in the semiconductors cluster is a benefit to any community. Because such plants require intensive land, electricity, and water resources, communities are prudent to evaluate these resources prior to recruiting a plant. Round Rock has evaluated its infrastructure and is fully capable of meeting these demands. The city may seek to attract a new semi fab plant and related businesses as well as nurture the growth of its existing firms. AngelouEconomics 60 Housing & Construction Cluster Definition — The Housing & Construction cluster includes businesses engaged in the construction of residential and commercial buildings, highway and utility infrastructure, and construction trade specialists, such as architects, metal workers, plumbers, masons, and electrical workers. The housing & construction industry is supplied by businesses engaged in the manufacturing of metals, bricks and concrete, and petroleum products. In addition, logging, mill, and woodwork services are important industries in the supply chain. Industry Trends — More than most industries, the housing and construction cluster is largely dependent on local market demand and less reliant than many industries on national trends. The industry tends to follow the success of other local industries; as the area's growth rate starts to slow, the housing and construction industry growth rate levels off, maybe even declines. For the past decade, Round Rock's housing and construction cluster has been fueled by rapid growth in the high technology industries and a large influx of new residents. AngelouEconomics Housing & Construction Cluster Suppd'ers Foundation Suppfieis Fcmmm/c Infrastructure (Maranon andicate suonyn•tudages� Petroleum Products • ' E ngineenng & I Architecture Highway Infrastructure Target Industry Assessment Housing & Construction Commercial and residential buildings, highways and utility infrastructure, construdion trade specialists Brick and Concrete Logging, Mills, and Woodwork Agncultural Services Personnel Services / / / Abundant Labor Management Consulting 1 / Freight & Storage Real Estate Services / / / Low Property / Tax Burden / Low Inventory Taxes Metals and Fab. Metals Financial Services 61 National & Regional Comparison- Housing & Construction (luster Ratio Firms Employees National & Regional Peers Target tnaustry Assessment AngelouEconomics 62 1.45 re, 1.98 1.20 1.18 0.93 0.55 1.86 2.27 1.06 wa y 1.60 wow 1.65 0.69 Round RockWilliamson Austin MSA Texas Co. Austin Boulder Cedar ParkGeorgetown Hillsboro McKinney San MarcosSugar Lan( 319 1,221 5,198 72,605 3,046 8,892 44,935 648,141 2,837 559 160 274 489 281 183 285 27,675 3,462 837 1,766 2,836 2,399 2,142 1,685 National & Regional Comparison- Housing & Construction (luster Ratio Firms Employees National & Regional Peers Target tnaustry Assessment AngelouEconomics 62 Target Industry Assessment Round Rock Findings and Observations — The housing and construction cluster reveals a location ratio of 1.45 for Round Rock — a ratio significantly higher relative to Austin's 0.93, Boulder's 0.55, Hillsboro's 1.06, Sugar Land's 0.69, slightly higher compared to Austin MSA and Texas, but significantly lower when compared to Georgetown's 2.27 and the rest of its regional and national competitors. Although a cluster ratio of 1.45 does not indicate a high level of specialization in Round Rock relative to the nation, it is higher than average and can be attributed to the rapid growth of the city since 1990. Round Rock has captured 27 percent of Williamson County's population growth since 1990 by adding over 29,600 residents. This influx of new population coupled with strong growth in the computer equipment cluster has spurred demand for new homes, commercial structures, and roadway construction throughout the city. The housing and construction industry cluster accounts for more than seven percent of total employment, or approximately 3,000 people. The top four employers employ 805 people, or two percent of total jobs and 26 percent of the 3,046 jobs found in the housing and construction cluster. The top industry employer, the Christianson Company, employs 400 people or 13 percent of total housing and construction jobs and nearly one percent of total city jobs. Chasco Contracting follows with 180 jobs. Strategic Implications — Although more than seven percent of total employment is attributed to the housing and construction industry, which registers a higher than average cluster ratio, the industry is inherently dependent on both local market demand and the success of other primary industry clusters. This dual dependence weakens its position as a primary cluster to attract other businesses. On the other hand, the cluster is a good source for facilitating and supporting the growth of supportive industry clusters, such as business and professional services, general services, and material supplies. AngelouEconomics HOUSING & CONSTRUCTION Top Employers Christianson Company Chasco Contracting Brath, Inc. CASA, Inc. Featheriite Building Materials Pitt Building Company . 63 Industrial Supplies Definition — The Industrial Supplies cluster includes businesses engaged in the manufacturing of synthetics, industrial machinery, packaging devices, electrical industrial apparatus, inorganic chemicals, plastics, laminated plates and sheets, primary copper and aluminum and nonferrous metals, analytical instruments, measuring and controlling devices, and environmental control systems. Major suppliers to the industrial supplies cluster include natural resources, petroleum, natural gas & gas utilities, chemicals, and mining & minerals industries. Industry Trends — Key factors affecting the demand for industrial supplies include the health of the end -user markets, environmental regulations, and trends in foreign trade. Industry analysts expect demand for machine tools and accessories to decline due to technological improvements. New innovations result in better, faster machines not needing to be replaced as often as in the past. In addition, replacing metals with plastics can also improve quality and performance. Analysts suggest that the highly fragmented fabricated metal parts manufacturers can carve out a niche in the market by introducing new metals with exceptional properties. This presents an opportunity for manufacturers to upgrade their products, increase value -added qualities, and avoid foreign competition. In sum, as the automation process becomes more productive and less dependant on coolants and harmful fluids, manufacturing employment will decrease while employment in research and development increases. AngelouEconomics Industrial Supplies Foundatio Suppliers Economic /nfrastructur Industrial Supplies airrderary indreate motors, generators, industrial equipme stronger linkages) Electrical Industrial devices, synthetics, primary copper, aluminum & nonferrou materials,inorganic chemicals etc Suppliers Natural Resources Resources Legal Services Target Industry Assessment (Technical Labor / Petroleum, Natural Gas, & Gas Utilities Fabricated Engineering Architecture / / Occupational Training Chemicals Real Estate \ T rBanldn &I Credltr // Universities & / Colleges / Mining & Minerals Motor & Storage Computer . Services Low Property Taxes 64 National & Regional Comparison - Industrial Supplies Cluster Ratio Firms Employees dState National 6 Regional Peers Target Industry Assessment AngelouEconomics 65 1.15 0 0.88 0.93 0.51 0.40 0.61 0.25 IS 1.14 1.29 0.53 1.45 0.39 Round RockWilliamson Austin MSA Texas Co. Austin Boulder Cedar ParkGeorgetown Hillsboro McKinney San MarcosSugar Lan( 42 120 502 9,809 1,340 2,190 10,594 284,344 285 100 10 31 76 25 15 43 6,632 2,132 62 493 1,909 439 1,048 522 National & Regional Comparison - Industrial Supplies Cluster Ratio Firms Employees dState National 6 Regional Peers Target Industry Assessment AngelouEconomics 65 Round Rock Findings and Observations — Round Rock registers a slightly above average cluster ratio of 1.15 in its industrial supplies industry. This is a slightly higher location quotient relative to Williamson County, Austin MSA, Texas, and significantly higher compared to five of its regional and national competitors. Approximately three percent of total employment can be attributed to the industrial supplies cluster. Of the 45 local companies in this sector, the top six firms employ a total of 976 people, or nearly 73 percent of total industrial supplies jobs. Teco Westinghouse Motor Company is the largest employer in this cluster with 525 people. Thermo Measuretech follows with a 120 jobs. Target industry Assessment INDUSTRIAL SUPPLIES Top Employers Teco Westinghouse Motor Co Thermo Measuretech Thermo Electron Corporation Paradigm Metals Inc Texas Heat Treating Inc Strategic Implications — Round Rock has attracted enough industrial suppliers to meet demand. These suppliers are important when creating a critical mass in that it prevents leakage from the local economy. Allowing area manufacturers to purchase from local suppliers creates a higher multiplier for the area and retains local dollars. The city may benefit from efforts encouraging firms to invest in technological innovation, but not necessarily from recruiting new industrial supplies companies, except those in highly value - added sectors such as analytical instruments, measuring and controlling devices, and environmental control systems. Otherwise, land acquisition and operating costs are increasing requiring these companies to locate further away from the metro core. AngelouEconomics 66 Round Rock's Weak Clusters Target Industry Assessment Of its weak industry clusters, six are particularly important to its economic stability and future sustainable development. Two of its weak industries are part of the overall high technology cluster, namely the Telecommunications and the Software /MultimedialData clusters. Since Round Rock's revenue is largely based on sales taxes, of particular concern is the Retail cluster exhibiting a relatively low location quotient. Similarly, the low cluster ratios of Health Services, Business & Professional Services, and Financial Services point to inadequate supply and the need to import these products and services. While the five selected strong clusters provide 45 percent of Round Rock's employment, the six selected weak clusters account for only 24 percent of the city's total jobs. The city's employment share within the selected weak clusters is the lowest among its regional and national competitors where the employment share ranges from 31 percent to nearly 47 percent. Only Hillsboro's employment share comes close with nearly 26 percent of its total jobs attributable to the selected weak clusters. In sum, low duster ratios point to weaknesses in the local economy, whereby the community's needs are satisfied through external sources rather than local supply. In addition, low location quotients indicate that local money is spent somewhere else, thereby reducing the city's coffers. The following six weak clusters are examined in greater detail: • Telecommunications • Retail • Software /Multimedia /Data • Health Services • Business & Professional Services • Financial Services AngelouEconomics 67 City/Metro 1.6% 10.0% 4.1% 6.0% 1.7% 2.9% 9.1% 6.6% 17.0% 4.2% 0.2% 27.8% 2.9% 11.6% 1.3% 0.8% 12.8% 10.6% 10.7% 2.2% 0.7% 11.5% 5.7% 12.5% 3.5% 0.5% 13.7% 7.3% 14.3% 3.0% 2.6% 12.5% 3.6% 23.6% 2.0% Target Industry Assessment Percent of Total Employment, Regional & National Comparison - Selected Weak Clusters, 2001 Business Software/ Telecom. Retail % Share of l Health & Prof. Financial Multimedia/ Total Jobs Svcs. Svcs. Svcs. Data Total Empl Regional Peers Round Rock Austin Cedar Park Georgetown McKinney San Marcos Sugar Land National Peers Boulder 3.2% 8.7% 5.6% 232% 1.8% 4.1% 55,715 46.6% Hillsboro 1.7% 7.3% 3.9% 9.5% 1.5% 1.8% 13,102 25.7% 0.6% 3.2% 0.9% 0.4% 0.3% 0.9% 1.4% 9,637 23.9% 244,715 42.9% 3,855 44.7% 5,596 37.5% 9,802 34.2% 9,840 39.7% 21,365 45.8% Metro /State Austin -San Marcos MSA 2.5% 10.0% 6.4% 15.4% 3.7% 2.6% 291,846 40.6% Williamson Co 1.5% 12.7% 5.2% 7.9% 3.4% 0.7% 26,943 31.4% Texas 1.9% 12.7% 7.9% 13.9% 4.0% 1.3% 4,394,559 41.7% Source: AngelouEconomics, Inc.; Dun & Bradstreet AngelouEconomics 68 Cluster Distribution - Selected WEAK Clusters Round Rock, Austin -San Marcos MSA, & Texas (2001) Round Austin -San Marcos Cluster Rock MSA Texas Telecommunications 0.94 1.50 1.14 Retail 0.94 0.93 1.19 Consumer Goods 0.59 0.55 0.57 Software /Multimedia/Data 0.57 2.32 1.17 Health Services 0.49 0.77 0.95 Business & Professional Svc. 0.42 1.09 0.98 Financial Services 0.38 0.84 0.90 Printing & Publishing 0.32 0.78 0.72 Transportation Equipment 0.02 0.04 0.35 Aerospace 0.00 0.64 1.10 Source: AngelouEconomics.; Dun & Bradstreet Cluster Location Factor 0.00 0.50 1.00 1.50 2.00 2.50 aw..w ■Round Rock "woman! Fivimii Target Industry Assessment aid •Austin -San Marcos MSA MI Texas Cluster Strength Lim Weak Average Strong • 0.00 1.00 2.00 AngelouEconomics 69 Telecommunications Definition — The Telecommunications cluster includes manufacturers of network, switching and transmission equipment, telephone and facsimile machines, fiber optic materials and cable, wireless communications equipment (including pagers), and satellite communications systems. In addition, the telecommunications cluster includes providers for Internet, voice, paging, and wireless and mobile services. Included also are radio and television stations, cable services, local and long - distance telephone providers. Inputs to the telecommunications cluster include electronics firms, software developers and semiconductor manufacturers. AngelouEconomics Telecommunications Cluster Suppliers Telecommunications Manufacture or distribution of elecom equipment; telecom services an radio and television stations Electronics Software Semi- conductor Manufacturing er )ate Industry Trends — Today's communications systems deliver voice, video, and data by means of a variety of wired and wireless methods. The defining feature of today's communications market is change, spurred by technological advances and deregulation. For all these communications competitors, becoming a "one -stop shop" is the ultimate goal. Communications companies want to offer customers a bundled package of services including local and long- distance telephone service, online services and high -speed Internet connections, wireless phone and paging, pay TV, and tailored billing and incentives. With this convergence of services in the industry coupled with the passage of the Telecommunications Act of 1996, telecom company mergers have flourished in the past few years. Industry analysts have observed intense activity in two industry segments — cables and wireless. Cable companies have been expanding their market share at the expense of telephone companies, but analysts Foundation Suppliers Economic Infrastructure LegalSenbces Transportation Infrastructure Target Industry Assessment Utilities Air Cargo & Transport • Real' Estate Misc Telecom Services i Services Banks & Credit r Institutionsr Printing Low Property Tax Burden 70 . ___ _.._ 0.94 _._ _ 1.50 1.14 0.90 1.76 1.89 0.14 rni 0.50 II 1.03 0.40 0.32 1.58 Round RockWilliamson Austin MSA Texas Co. Austin Boulder Cedar ParkGeorgetown Hillsboro McKinney San MarcosSugar Lan 30 82 644 7,840 632 1,292 17,932 200,559 513 116 9 16 19 20 10 34 16,706 3,766 20 123 871 191 132 1,223 caution over a glut of cable capacity. The wireless segment has seen a 23 percent increase in spending as mobile phones rapidly have become ubiquitous. In summary, while the slow down of the overall economy may be affecting demand, the telecommunications cluster is in the basket of growing industries with strong long -term growth potential. National & Regional Comparison - Telecommunications Cluster Ratio Firms Employees National & Re Peers Target Industry Assessment AngelouEconomics 71 Target Industry Assessment Round Rock Findings and Observations — Round Rock's telecommunications cluster ratio of 0.94 is higher relative to five of its regional and national peers, but significantly lower compared to Boulder's 1.89, Austin's 1.76, Sugar Land's 1.58, Austin MSA's 1.50, and Texas' 1.14. A cluster ratio below one indicates that the community is not specialized in this industry relative to the nation. The city needs to import some services and products in order to satisfy local demand. This relatively low cluster ratio can be attributed to its proximity to Austin. Round Rock's needs are most likely satisfied through imports from this neighbor. On the other hand, Round Rock seems to capture a significant share of business activity within the Williamson County. Specifically, Round Rock accounts for nearly 37 percent of business and nearly 50 percent of jobs found in the county. Approximately 600 people are employed in the 30 telecommunications firms, or 1.4 percent of total employment. The combined employment for the top six companies is 575 people with Tellabs Inc. holding the majority with a workforce of 500 people, or 1.1 percent of total jobs. TELECOMMUNICATIONS Top Employers Tellabs Inc S M & P Utility Resources Inc Verizon Wireless Intelligent Traffic Systems Texas Meter & Device Company La Nueva Strategic Implications — Round Rock is well positioned to tap into the wireless market. As a growing community, Round Rock can benefit from increased telecommunications providers and position itself as a telecommunications hub servicing its neighbors, such as Cedar Park and Georgetown. Specifically, the city can carve out a niche to fill the gap between well -served areas and underserved rural parts of Williamson County. By more fully developing this industry, Round Rock will not only diversify its economic structure, but also support the city's existing electronic, semiconductor, and software suppliers. AngelouEconomics 72 Retail Definition — The Retail cluster includes businesses engaged in the selling of goods and services such as food, clothing, apparel, manufactured homes, cars, gasoline and various petroleum and fuel products, furniture, musical and entertainment instruments, drugs, recreational vehicles, jewelry, gifts, books, liquor, flowers, news dealers, and optical instruments and services. Generally, retail trade consists of the buying and selling of items (perishable and non- perishable) and services needed by the general population. Businesses classified in the retail cluster do not engage in the manufacture of products; their primary business activity is to buy and sell goods and services. Most other industry clusters make up the supply chain to the retail industry. AngelouEconomics Target Industry Assessment Retail Cluster Food & Grocery Stores Restaurants & Bars Homes Dept. Stores, Appare & Accessories Lumber, Hardware, & Related Entertainment & Movies L ,... me Furnishings Industry Trends — Although the retail industry is not necessarily a primary driver in a local economy, it has the potential to attract outside spending and act as a catalyst for secondary industry growth. The retail cluster, however, is Automobiles, & % _ Other Retail highly sensitive to changing consumer tastes and global Gasoline fe sfronger linkages) market fluctuations. This high sensitivity to market changes places the industry on a fickle business cycle with high job tumover. Moreover, the retail cluster is not a major source of stable and well paying jobs. It mainly attracts entry-level workers and those needing to supplement their income from other sources, although managerial and administrative positions offer better wages and tend to attract college graduates. Despite these characteristics, a strong retail cluster can spawn the growth in other primary and secondary industries, such as telecommunications and business and professional services. The retail industry has long -term prospers in that consumers need goods and services to conduct their daily 73 1.19 1.19 0.94 0.93 11 0.85 0.82 E Fl 2.60 1.20 0.68 ri 1.08 128 1.17 r Round RockWilliamson Austin MSA Texas Co. Austin Boulder Cedar ParkGeorgetown Hillsboro McKinney San MarcosSugar Lam 470 1,715 9,256 160,790 4,020 10,900 71,529 1,336,587 5,773 1,069 349 365 437 526 491 714 51,611 10,453 2,396 1,912 3,714 3,310 3,402 5,845 life. Technological advances will act as a catalyst to changes in business routine with the intent of making the industry more productive and efficient. National & Regional Comparison - Retail Trade Location Quotient HMS Employees e National & ReQionalPeers Target Industry Assessment AngelouEconomics 74 Target Industry Assessment Round Rock Findings and Observations — Round Rock registers a cluster ratio of 0.94 in the retail trade industry, which is among the lowest relative to most of its regional and national competitors. Despite a relatively low location quotient, the retail industry cluster accounts for ten percent of local jobs. Approximately 4,000 people are employed in Round Rock's 470 retail businesses. A cluster ratio slightly below one indicates that Round Rock must import some retail goods and services to satisfy local demand. Comparatively, Round Rock's neighbor Cedar Park reveals the highest cluster ratio of 2.6 pointing to a higher level of industry specialization relative to the nation. Williamson County registers a location quotient of 1.19, also indicating some level of industry specialization relative to the nation. In contrast to many industries, this industry employs workers in all cities of the country. This characteristic can explain Round Rock's lower than one location quotient as the industry seems to be ubiquitous making it harder to achieve specialization. Typically only regional retail centers reach a locational quotient greater than one in retail. This data, however, does not fully capture new mixed -use and retail developments in Round Rock such as the La Frontera Village, which features 875,000 square feet of retail space. The top six retail establishments account for 2,137 jobs, or nearly five percent of total employment. Sears is the largest employer with a workforce of 1,200 people, followed by NEB which employs 253 people. Other larger employers include Classic Oldsmobile, Wal- Mart Supercenter, and Target. RETAIL Top Employers Sears Customer Network HEB Grocery Store 144 Classic Oldsmobile Wal -Mart Supercenter 475 Target Albertsons Sam's Club Wag -A -Bag Strategic Implications — According to the Texas Comptroller's Office, the number of retail establishments in Round Rock has increased from approximately 350 in 1990 to 700 in 2000. (The number of permanent establishments is actually lower due to seasonal outlets operating only during the Holiday season.) The most dramatic increase in the number of stores occurred from 1990 though 1996. From 1996 through 2000, the number remained relatively stable. The current year, however, will witness the coming online of all of the La Frontera retail space. Despite these new outlets, demand for retail in Round Rock will most likely still outpace local supply. In 2000, Round Rock's median household income was estimated at $50,300 of which it is assumed that 35 percent was spent on taxable retail purchases. This would support expected retail sales of $1.2 billion. However, according to the Texas Comptroller's Office, the city's estimated retail sales for 2000 reached only $1.0 billion, implying a retail leakage gap of approximately $192 million. Taking into account the tremendous portion of $1.0 billion that represented in -state sales by Dell, the actual retail leakage is much higher than $192 million. This high estimated leakage gap was likely spent outside Round Rock to satisfy local demand, a situation which will continue as population increases and disposable incomes rise. Moreover, growth in the retail industry AngelouEconomics 75 Target Industry Assessment spurs growth in related secondary clusters including business and professional services, printing and publishing, financial services, and tourism. While the private sector is currently taking advantage of local opportunities to expand the market for retail in Round Rock, the city should seek to attract more facilities such as Dell and Sears.com. These centers, which process retail orders directly to end - users, generate massive sales tax revenues for the city. Such developments along with new retail outlets will have the effect of bridging the gap between supply and demand while spawning growth in other industries. Retail is a particularly important industry to Round Rock in terms of retail sales tax rebates. As previously discussed in the Community Economic Assessment, Round Rock relies on sales tax revenues to fund transportation improvements and subsidize local property taxes as well as fund economic development efforts. Retail sales are therefore critical to the city's continued growth. Round Rock's strong socioeconomic indicators have increased the community's profile among real estate developers. By the end of this year, La Frontera Village, an 875,000- square -foot retail center being developed by David Berndt Interests and Developers Diversified Realty will be fully occupied. This retail center is part of a 328 -acre mixed -use development featuring 200,000 square feet of class "A" office space, 411 multifamily units, and an 8 -story, full - service, 300 -room Marriott hotel. Within this mixed -use development, Koontz McCombs is developing an approximately 200,000 square feet manufacturing /flex space. Nearby, Barshop & Oles Co. is developing 150,000 square feet of offices in a project called TechRidge Plaza. In April 2001, developers of La Frontera Village announced that the center is 100 percent leased and that current retails are registering revenues higher than anticipated. Just south of Round Rock's city limits Weingarten Realty Investors of Houston is planning a second retail center. The project encompasses 39 acres and is expected to bring 300,000 to 350,000 square feet of "lifestyle" retail establishments to the area. In sum, given its dependence on sales tax rebates, Round Rock will greatly benefit in supporting all of these activities, while monitoring market changes and fluctuations. AngelouEconomics 76 Software /Multimedia /Data Definition — The Software /Multimedia/Data processing cluster is comprised of computer programming services, prepackaged software, data processing, and information retrieval services. Computer integrated system design is closely related to the software industry, but is classified in the computer hardware cluster since most systems integrators are value -added resellers of computer systems. Important suppliers to software developers and engineers are computer electronics and optical equipment, as software functions are increasingly "embedded" on the hardware architecture of suPPfers products. Software & Multimedia Cluster s) ate Photo & Optical Equipment Advertising Services Target inaustry Assessment Software & Multimedia computer programming services, prepackaged software, data processing, and information retrieval services Capital AvailabdAy 1 Computer Equipment r Personnel Services Technical Labor Industry Trends — As more business activities move to the digital world, demand for better, more flexible, and secure Electronics Motor Freight software /multimedia /data services and packages will increase. &storage A growing segment is in the integration software where Foundation systems are designed to help firms integrate their online .suppliers business methods with their traditional techniques. In addition, the rise in wireless and mobile gadgets will increase Economtc Air Cargo & demand for enabling systems and programs. Similarly, Inlrastrudtum Transport demand in entertainment products, such as games, will spawn the development and production of entertainment related software. In addition, demand for data centers will most likely increase in the near future. However, the high construction costs associated with data centers may impede pronounced business activity in Round Rock. In summary, the software /multimedia /data cluster is poised on a strong path of short and long -term growth. In addition, growth in this industry will trigger growth in supporting industries including the business and professional services and financial services. twandalr Services Paper Products Low Income Taxes AngelouEconomics 77 2.32 1.17 0.57 0.63 2.79 3.62 L 0.79 0.37 1.61 r 0.79 1.20 Round Rock Williamson Austin MSA Texas Co. Austin Boulder Cedar ParkGeorgetown Hillsboro McKinney San Marcos Sugar Lanc 55 162 1,257 9,246 261 615 18,873 139899 1,019 309 32 22 38 34 13 93 18,028 4,901 77 63 932 87 221 636 National & Regional Comparison - Software /Multimedia /Data duster Ratio Firms Employees Na tional h Region / Peers Target Industry Assessment AngelouEconomics 78 Round Rock Findings and Observations — Round Rock's cluster ratio of only 0.57, which is significantly lower when compared to its national peers, Austin, Sugar Land, Austin MSA, and Texas, but higher than Georgetown and McKinney. There are only 261 employees in 55 firms engaged in software and multimedia activities. In contrast, Boulder registers the highest location ratio of 3.62 indicating specialization in this industry relative to the nation. The Austin MSA boasts a location quotient of 2.32 indicating some specialization relative to the nation as well. Round Rock is part of the Austin MSA, yet it does not hold a strong place within it with respect to the software and multimedia cluster compared to the computer equipment industry. MagRabbit has the largest number of employees in the cluster with 125. Target Industry Assessment SOFTWARE/MULTIMEDIA/DATA Top Employers MagRabbit, Inc. Transaction Processing Specialists Austinonlinenet Electric Tours Corporation 23 Skidoo Loving Kisses 5 D Systems Inc Microdata Technologies Inc Strategic Implications — Most software, multimedia and data processing activities do not require massive infrastructure investments compared to the semiconductor or other type of manufacturing businesses. This industry cluster requires high skill workers and offers high -end salaries. Moreover, with an already very strong computer equipment and semiconductor presence in the community, Round Rock stands to benefit greatly from focusing its efforts in nurturing the budding software /multimedia firms and to attract new businesses. In addition, a high ratio of firms to employees suggests that it is an already emerging cluster in the area needing local nurturing. AngelouEconomics 79 Health Services Definitions — The Health Services industry cluster is comprised primarily of businesses engaged in the provision of medical services including hospitals, clinics laboratories, medical private practices & offices, doctors, nurses, medical technicians, intermediate health care facilities, and specialty hospitals and institutions. The Health Services industry is closely intertwined with the Medical Supplies cluster. Suppliers to the health services cluster include hospital services, machinery & equipment, air transportation & logistics, drugs & plastics, computer processing, legal and accounting services, and real estate. A vibrant health services industry requires an established economic infrastructure comprised of research centers, a stable legal environment, skilled technical labor, and higher education institutions. AngelouEconomics Suppliers ? Legal & Accounting Target Industry Assessment Health Services ealth & Medical Service Dolor and dentist offices & dinics, laboratories, hospitals, and medical 5 a a fadltes Computer Air Processing Transport K . r � Motor Freight & Storage Technical Labor 1 Machinery & Equipment Industry Trends — The health services industry is relatively foundation immune to market fluctuations. Overall, the health services ST Piers industry outlook is positive. This cluster is one of the largest industries in the country, with about 11.3 million jobs, including Economic Infrastructure the self - employed. According to industry analysts, employment in the health services cluster will continue to grow for a number of reasons. The elderly population, a group with much greater than average health care needs, will grow faster than the total population through 2008, increasing the demand for health services, especially for home health care and nursing and personal care. As the baby boom generation ages, the incidence of stroke and heart disease will likely increase. Advances in medical technology will continue to improve survival rates. Moreover, new technologies will enable identification and treatment of conditions previously thought of as untreatable. In addition, medical group practices will become more complex and large offering a variety of medical services, from general to specialty treatments, and will / Research Centers Drugs & Plastics Fabricated Metals Universities & Colleges Banking &I 'Insurance Hospital Services F Personnd Services Stable Legal Environment 80 need more managerial and support workers. Essentially, a growth in population size signals demand for more medical services. Similarly, an aging of the population facilitates demand for increased health services while spurring growth in related business activities such as medical product research, development and innovation. National & Regional Comparison- Health Services Cluster Ratio Firms Employees Metro and State National &Rea lanai Peers Target Industry Assessment AngelouEconomics 81 0.49 .IRO" 0.95 0.77 0.63 0.79 0.68 0.36 1.28 0.48 0.69 0.88 0.44 Round RockWilliamson Austin MSA Texas Co. Austin Boulder Cedar ParkGeorgetown Hillsboro McKinney San MarcosSugar Lanc 143 333 2,643 42,272 1,644 4,488 45,925 827,649 2,026 741 43 85 131 138 118 258 37,390 6,740 253 1,576 2,003 1,632 1,811 1,696 need more managerial and support workers. Essentially, a growth in population size signals demand for more medical services. Similarly, an aging of the population facilitates demand for increased health services while spurring growth in related business activities such as medical product research, development and innovation. National & Regional Comparison- Health Services Cluster Ratio Firms Employees Metro and State National &Rea lanai Peers Target Industry Assessment AngelouEconomics 81 Target Industry Assessment Round Rock Findings and Observations — Round Rock's cluster ratio of 0.49 in the health services industry is the fourth lowest among its 11 regional and national competitors. A low cluster ratio points to two significant features present in the community. First, a low location ratio indicates that the city is not specialized in this industry relative to the nation. Secondly, the city has an inadequate supply of health care services whereby its citizens must go elsewhere, such as Austin, for services. With the exception of Georgetown, all of Round Rock's regional and national competitors have cluster ratios below one, indicating no specialization in this industry relative to the nation. Approximately four percent of total jobs in Round Rock are found in the health services cluster, which is comprised of 143 medical services firms. The Round Rock Medical Center, which recently completed a $30 million expansion and is considering another, is the only hospital servicing the city's population of 61,100. The Center's employment of approximately 550 workers translates to 0.01 people per citizen providing hospital -type medical care in the city. The small ratio of firms to employees in Round Rock suggests that there are a small number of individual or group medical care offices in the city. Overall, there are approximately 1,600 people providing medical care services to a population of 61,100, or 0.03 people per citizen. Strategic Implications — Round Rock's explosive population growth in the past decade has signaled the need for more medical services. The purchase of a one hundred acre tract by Scott & White indicates that health care providers potentially see Round Rock as a regional center from which these services can be provided to residents in North Austin and other Williamson County communities. Round Rock would benefit most from assisting the Round Rock Medical Center with its future expansion plans as well as nurturing the development of smaller scale and specialty health care service centers. AngelouEconomics 82 Business & Professional Services Definitions - The Business & Professional Services cluster includes all accounting, auditing, bookkeeping, and tax related services; credit reporting and collecting services; holding companies; and investment offices (excluding banks or brokers). Additional business services included are real estate leasing and operations, advertising services, photography, and employment and temporary help agencies. Professional services include legal, engineering, architectural and surveying, commercial training, management consulting, research, public relations, and business and economic consulting. Major suppliers to this cluster include businesses engaged in banking and insurance services, maintenance and repairs, utility services, real estate, and freight and storage. AngelouEconomics Business & Professional Services Cluster Accounting, Auditing plideramrnofeate Suppliers Target Industry Assessment Holding Companies & Investors Archrte tural & Engineering Air Cargo & Transport / Utilities Advertising / PR & Photography Bus ness Consulting tint Real Estate Industry Trends — The business and professional services industry accounts for 14 percent of national employment. This Economic cluster is primarily a secondary industry as it largely depends on /nrrasrtiaure the success and growth of other primary industries, mainly those involved in the manufacturing and distribution of perishable and non - perishable goods. However, all companies regardless of their industry as well as most households use the services of these firms on a regular basis. Although the "Big Five" accounting and management firms dominate this industry in the large metro markets, much of this sector is comprised in local markets of many small firms. These companies represent national chains, such as H &R Block and Kinko's, as well as independent professional partnerships and individuals offering a variety of services. Employment within this sector, particularly within professional services, represents a well -paid, highly skilled labor force. This sector has become an important indicator of the diversity of a local economy and its capacity to meet the demands of its local business owners and residents. Capital Availability Priva e Traini g Available Labor Employment Agencies Research & Development Freight& Storage / Legal r Banks & Insurance Low Property Taxes 83 1.09 0.98 0.56 0.42 n 1.20 1.64 0.82 0.76 0.67 0.88 1.01 1.67 Round Rock Williamson Austin MSA Texas Co. Austin Boulder Cedar ParkGeorgetown Hillsboro McKinney San Marcos Sugar Lanc 563 1,658 13,700 161,273 2,407 6,748 110,669 1,466,470 10,626 2,970 227 402 485 580 391 906 97,018 27,690 996 1,600 4,841 3,579 3,536 11,015 National & Regional Comparison - Business & Professional Services Ouster Ratio Films Employees Metro and State National & Regional Peers Target Industry Assessment AngelouEconomics 84 Target Industry Assessment Round Rock Findings and Observations — Round Rock's cluster ratio of 0.42 is the second lowest among its regional and national peers. This indicates that Round Rock residents and businesses go elsewhere to address local needs. Not only is Round Rock a relatively young community, but its explosive population growth occurred rapidly in the past decade. The city's business and professional services cluster has had little time to develop to meet this demand. The leading communities in the business & professional services cluster are Sugar Land, which records a ratio of 1.67, Boulder with a location quotient of 1.64, and Austin at 1.20. Although Round Rock registers a very low location ratio, approximately six percent of its total jobs are found in the business and professional services industries, or nearly 2,400 people employed in the existing 563 firms. Food & Services, providing restaurant management services, employs 200 people, followed by Facility Services USA with 75 people, and Goodwin J B Realtors and Protect America each employ about 40 people. BUSINESS & PROFESSIONAL SERVICES Top Employers Food & Service Facility Services USA Goodwin J B Realtors Protect America Inc Strategic Implications — As more manufacturing and distribution of goods and services takes place in a region, the demand for business and professional services increases. Furthermore, wealth generated by one of Round Rock's dominant employers, Dell, fuels local entrepreneurial activity, thereby establishing demand for credit and investment services, management and business consulting firms, personnel service, and technical consulting services. Round Rock is well positioned to attract national firms to establish regional offices as well as a variety of locally -owned professional firms and service providers. Locating these companies in Round Rock has historically been limited by the lack of Class A and B office space. Establishing more of this type of real estate in Round Rock, such as that recently completed at La Frontera, will be essential to securing more businesses locally, thereby providing a needed diversity of services within the city. AngelouEconomics 85 Financial Services Definition — The Financial Services cluster includes businesses engaged in various aspects of financial analysis operations, management and lending. Specifically, the financial services cluster includes commercial banks; mortgage bankers and loan brokers; security and commodity brokers; personal and business credit ratings and loans; national and state commercial banks; federal and central reserves; and pension, health, and welfare funds. Real estate services, legal services, general wholesale, and computer and telecommunications industries comprise the primary supply chain to the financial services cluster. Order arrows6dicale slron7erknkaagesl Industry Trends — In the U.S., basic financial services such as savings institutions and commercial banks servicing private citizens and businesses alike are spreading throughout the nation. Specialized financial services, such as security and Suppliers commodity exchanges and brokers, business credit institutions, foreign trade and intemational banks, and federal and central reserves, are clustered in few geographic areas. For example, New York City is home to the New York Stock Exchange Market Financial Services Cluster Business & ' `National & State Commercial Personal Credit Federal & Commercial Ba"ks Institutions Central Reserves ^ banks Insurance Institutions Pension, health, and welfare funds Mortgage Bankers & Loan Brokers Security & Commodity Brokers T tTt / / Capital Availability Real` Estate Economic T ransportation & lnhastluctur Communications / and is one of the top intemational financial centers boasting numerous foreign trade and intemational banks. AngelouEconomics Target Industry Assessment / / Computers & Telecomm, Available Labor / / Low Property Taxes Financial services companies spent the past five years scrambling to be all things to all customers. Technological advances, the rise in e- business, and a trend towards a more customer - centric business model all work together to transform the financial services landscape. Analysts expect eamings in securities to be in the low single - digits, which is down from the double -digit eamings registered in 2000. As people's incomes continue to climb and they seek better retums on their investments, they will require the 86 advice and services of securities and commodities experts. In sum, the financial industry cluster is headed for some challenging times while it is trying to absorb technological innovation, changing business methods, and deal with a challenging economy. National & Regional Comparison - Financial Services Cluster Ratio Finns Employees Metro and State National d Rert tonal Peers Target Industry Assessment AngelouEconomics 87 0.38 0.90 0.84 0.76 0.95 0.41 0. bh 0.79 0.67 0.46 Round Rock Williamson Austin MSA Texas Co. Austin Boulder Cedar ParkGeorgetown Hillsboro McKinney San Marcos Sugar Lanc 119 319 2,376 36,567 673 2,900 26,918 423,395 1,809 378 45 62 101 127 88 202 23,962 2,165 113 322 741 1,003 738 950 advice and services of securities and commodities experts. In sum, the financial industry cluster is headed for some challenging times while it is trying to absorb technological innovation, changing business methods, and deal with a challenging economy. National & Regional Comparison - Financial Services Cluster Ratio Finns Employees Metro and State National d Rert tonal Peers Target Industry Assessment AngelouEconomics 87 Target Industry Assessment Round Rock Findings and Observations — Round Rock registers the third lowest cluster ratio of 0.38 for the financial services industry after Hillsboro and Cedar Park. The city of Austin holds the highest location quotient of 0.95 followed by the state of Texas with a ratio of 0.90. Moreover, none of Round Rock's regional and national peers show industry specialization in the financial services cluster relative to the nation. This cluster accounts for approximately 1.7 percent of Round Rock's total jobs, or 673 people are employed in the 119 financial services firms. A low cluster ratio in the financial services industry reveals two aspects: (1) Round Rock is a young community, which only recently has experienced high growth rate; and (2) entrepreneurial activity needing financial services is nascent. In addition, financial services firms, especially banks are present in almost every community across the country making it harder to achieve specialization relative to the nation. On the other hand, those businesses requiring specialized financial services receive them from outside the community, thereby expending local money elsewhere. The top five firms employ 102 people, or only 0.2 percent of total employment. The largest employer, excluding Dell Financial Services, is Met Life with a workforce of 33 people, followed by Success Mortgage Investment, Bank One Texas National Association, Wells Fargo Bank, Regions Bank (formerly Texas Heritage Bank), and First Texas Bank. FINANCIAL SERVICES Top Employers Dell Financial Services LP Met Life Insurance Company Success Mortgage Investment Bank One Texas National Assn. Wells Fargo Bank Texas NA Regions Bank First Texas Bank Strategic Implications — With a gap between supply and demand for financial services coupled with an anticipated increase in entrepreneurial activity spurred by recent wealth created by Dell, Round Rock would stand to benefit from recruiting financial services firms. However, the challenges facing the financial services cluster may impede Round Rock from recruiting large financial services firms. Instead, Round Rock's efforts would be better spent in nurturing its existing institutions and encouraging smaller scale investment services firms to establish a local presence. AngelouEconomics 88 Marketing Strategic Plan Marketing Strategy for Round Rock Why Marketing Matters Marketing Strategic Plan Economic development marketing follows principles similar to marketing a product: understand and fulfill the customers' needs. Round Rock's Target Industry Assessment identifies the most appropriate "customers" for the city's economic development efforts. It provides the research that will drive its marketing initiative and illustrates the benefits Round Rock offers its target industries. This section of the report lays the groundwork for Round Rock's future marketing by providing guidelines for preparing the city internally for marketing and tailoring its promotional activities to attract the attention of its target industries. The field of economic development tends to rely on the same marketing methods it has used for decades. Even as the Internet has driven new platforms for marketing, most economic development agencies are not venturing beyond traditional models such as brochures and direct mailings. For communities whose goal it is to recruit and grow new generations of companies, traditional means of marketing no longer attract significant attention. Marketing communications provide an opportunity to affect the performance of Round Rock's economy. Successful marketing and branding activities will: • Unite the Round Rock community behind a single marketing message • Establish the image of Round Rock as a premier location for high growth industries • Maintain a "top of mind" awareness of Round Rock as part of a considered set of options when companies make site selection decisions • Result in more high impact, diversified companies locating in Round Rock. A marketing effort founded on accurate research and understanding of Round Rock's target industries can help recruit companies, workforce talent, and entrepreneurs to the community. This will lead to the creation of higher paying, higher quality jobs as well as a building momentum that sparks new "home grown" companies. AngelouEconomics 89 Marketing Strategic Plan Though Round Rock may be located within one of the nation's most high tech regions, the image of the city is not well founded on a national level. While awareness of the Austin area is high, Round Rock faces the challenge of creating its own unique identity. This is one objective of this marketing strategy. Developing the Round Rock identity can be accomplished through tactical marketing. The marketing message presented in this report will build on the city's special character and success stories. Definitions of Marketing Terms Important terms used throughout this report include: "Advertising" is an impersonal form of communication about goods, services, or ideas paid for by an identified sponsor. Mass media is typically used to send advertising to its intended audience. "Branding" is the process of using marketing messages to create loyalty for a certain product or service based on a set of distinct benefits and a clearly communicated position in the marketplace. A brand identity is a word in the mind of the target audience that links with certain emotions and expectations. "Marketing messages" are those designed to communicate the details of the product or service, its benefits, and its positioning to an intended external audience. "Marketing" is employing any activity, communications platform, or distribution channel to deliver the marketing message to the intended audience. Marketing is building the brand in the mind of the target audience. "Promotion" is any activity aimed at increasing awareness and improving perception of a product or service. Promotion includes but is not limited to advertising, and has three functions: informing, persuading, and reminding. AngelouEconomics 90 Marketing Strategic Plan The marketing plan is a roadmap for future marketing decisions. It defines the purpose of marketing, describes who to market to, and states the message to be communicated through marketing. It is to be used as a reference throughout the marketing process, to guide the creation of copy and images for all marketing collateral. The specific text contained within the marketing plan might never be quoted within promotional materials. Rather, this marketing plan presents the ideas that should be communicated. The success of Round Rock's marketing will depend on how well promotional activities convey the ideas and emotions described in the marketing plan. In addition to providing a roadmap, the plan contains a description of marketing distribution channels. These channels include any activity that distributes Round Rock's message, ranging from collateral materials to attendance at industry events and investment missions. All distribution channels discussed in this plan have been selected as the most effective methods for reaching the target industries identified in the Phase One report. The following sections answer the questions of why Round Rock should market, to whom the city should market, how it should build intemal support for marketing, and what message it should convey to develop the city's unique identity. AngelouEconomics 91 Marketing Strategic Plan Why should Round Rock market? Why should a region that has had such enormous success through companies such as Dell launch a marketing effort? Economic development marketing in Round Rock is disjointed. The community has far too many assorted images being conveyed to the public. So many different images are currently being communicated that the city has lost focus. The Chamber's existing marketing efforts are just one of many direct and indirect messages about the community. Consider the individual campaigns generated by the Round Rock Express, large -scale developments such as La Frontera, Round Rock I.S.D., and others. With multiple entities in Round Rock marketing diverse messages, chances are no one defining image of Round Rock has been created and target industries are not being reached. The purpose of this marketing strategy is therefore to create a single community identity that all organizations within the city can promote — placing high impact businesses and skilled workers as the focus of the message. Economic development marketing occurs for one of two reasons: (1) to make consumers aware of a region or (2) to change consumers' perception of a region. Round Rock is marketing for the first reason. Creating awareness of Round Rock as a unique identity within its target industries is the objective. In summary, Round Rock should market because: The city's economy will grow stronger with the recruitment and entrepreneurship of a diversified group of companies. While Austin, Texas is well known throughout the world as a high tech center, the current perception of Round Rock is that of a neighborhood subdivision of Austin. Marketing should establish the perception of Round Rock as a well- rounded community with unique characteristics that help individuals and companies succeed. AngelouEconomics 92 Who is the audience for Round Rock's marketing? Marketing Strategic Plan The primary audiences for Round Rock's marketing efforts were identified through the cluster analysis in Phase One of this report. These industries include: • High Tech Industries (Telecommunications, Software /Multimedia /Data, Electronics, Semiconductors, Computer Equipment Suppliers) • Business and Professional Service Providers • Retail Trade /Sales Tax Generators • Health Care Providers The strategy encourages Round Rock to focus on a diversified group of companies that will stabilize the city's economy, making it less susceptible to the fluctuations of limited sectors within the high tech industry. The Phase One analysis reveals Round Rock's lop -sided economy, with a heavy concentration one major company and a below average level of some important traditional industries. While the larger Austin MSA contains many of these companies, the Round Rock economy can easily support new businesses in the services, retail trade, and health care sectors. The recruitment of these businesses will improve the livability of the city by increasing access to needed goods and services and decreasing driving times for Round Rock residents and businesses. An ideal marketing strategy will contain a message that is appealing not only to Round Rock's primary targets, but also to organizations and individuals who inspire site selection decisions. Business influencers, entrepreneurs, and high skilled workers are important secondary target audiences. The first step of marketing is to understand the needs of Round Rock's target audiences. A successful marketing image will identify and promote common needs among the audiences. After developing this common theme as the core of its marketing initiative, Round Rock can then tailor audience - specific campaigns to address their individual demands. The information that follows includes descriptions of the general demands of each of Round Rock's primary and secondary targets. AngelouEconomics 93 Marketing Strategic Plan Primary Target One: High Tech Sector Round Rock should continue to target high tech companies, primarily in telecommunications and software /multimedia /data, but also within other high tech sectors as well. Despite current downtowns in some of these sectors, these industries have the greatest potential for high growth well into the future. These companies tend to locate in close proximity to other high tech companies to take advantage of shared markets and labor. They also tend to seek locations with abundant and inexpensive resources and top -rate telecommunications infrastructure. They prefer locations where they and their families can enjoy their time away from the office and appreciate the spirit and opportunities of a young, growing community. For these reasons, Round Rock and the greater Austin area have been highly successful in attracting these companies in recent years. Despite this established reputation as a high tech center, without continued efforts to attract these desirable companies, competition from other communities could threaten this position in coming years. Primary Target Two: Business and Professional Services As a group, business and professional services seek locations that are in close proximity to clients and contain an ample supply of skilled workers. Due to the nature of their services, these businesses remain stable through periods of economic downtum. Recently, many of these businesses have adopted a high tech focus and seek regions containing a high concentration of these firms. The business and professional service sector includes businesses such as: accounting and tax companies, real estate firms, advertising and marketing agencies, employment agencies, law firms, engineering and architectural firms, and management consultants. Primary Target Three: Retail Trade /Sales Tax Generators As a group, retail trade companies are searching for a location with a large number of potential consumers within a short distance. Customers of these businesses must meet a specific socioeconomic profile. Retail trade businesses' goods and services are easily substitutable; location, therefore, is the main driver of their success. They form a critical link in the workforce chain, often employing unskilled and low skilled workers and empowering them with basic job techniques. The retail trade sector contains a wide range of businesses, including: grocery stores, variety stores, apparel and accessory shops, auto and auto repair businesses, home fumishing stores, electronics retailers, building suppliers, and catalog sales companies. AngelouEconomics 94 Marketing Strategic Plan On the other hand, product ordering operations do not need to be close to their consumers. Instead, they require excellent telecommunications infrastructure, inexpensive operating costs, and an abundant labor force skilled in customer service and technical support. Any company which is capable of processing orders for its product online or over the phone can generate important local sales tax dollars for a community. Primary Target Three: Health Care As a group, health care companies look for locations currently underserved by health care providers. Most general health care providers (doctors and hospitals) require a location within close proximity to large populations. Many seek locations near research and development centers and medical universities. Workforce quality and diversity is essential, as these companies employ a wide range of workers from administrative to specialist physicians. With above average pay scales, health care employees prefer locations containing high -end housing, retail, and entertainment as well as high performance school districts. The health care sector includes businesses such as: hospitals, health care clinics, nursing homes, managed care companies, and independent medical practices. Secondary Target One: Business Influencers As a group, business service providers want to satisfy their clients by offering them solutions to their site selection and labor problems. They are looking for a location to recommend to their clients that (1) meets their client's workforce and business climate needs and that (2) allows their client to succeed. They are also looking for new customers and could view Round Rock as an untapped source of companies to whom to sell their services. Business influencers may include site selection consultants, accounting and tax specialty firms, financial institutions, venture capital firms, engineering firms, and law firms. Secondary Target Two: Entrepreneurs Round Rock will target entrepreneurs who have a business idea, but do not know the best location to start their business. Still in the early stages of creating their company, they have limited resources and would prefer to locate in a city with less costly competition for services and lower costs of living. They are searching for research and development resources, as well as service providers which understand the needs of a new business. They are looking for a business climate that allows their company to flourish while meeting their lifestyle needs. AngelouEconomics 95 Marketing Strategic Plan Entrepreneurs may include individuals currently living in Round Rock and working for an Austin -area company. They will want to establish a home business to continue enjoying Round Rock's high quality of life and excellent schools. Secondary Target Three: Highly Skilled Workers As a group, highly skilled workers are in short supply. They are confident that they can find a job and survive the recent economic slowdown. Within this group, job turnover is high. This group is searching for a location with many employment opportunities in their field. They are also searching for a community that provides their families with a high quality of life and access to culture that caters to their active lifestyle. The primary and secondary target industry share several common traits. All target audiences described above, both companies and individuals, are searching for a location that will enable their success. This success is closely linked to their proximity to a large population containing skilled workers. A high quality of life that promotes the retention of workers is also an essential location factor for all target audiences. AngelouEconomics 96 Marketing Strategic Plan What is the desired outcome of Round Rock's marketing initiative? In the long term, a successful marketing initiative will result in an increase in the number and quality of companies expanding and starting operations in Round Rock. The city should establish metrics to monitor its marketing success. Three broad categories of metrics are recommended below. These numbers should be calculated at least twice a year to assess whether the Round Rock's identity is becoming better known at the national level. Prospect Metrics These metrics measure the increase in companies seeking information about Round Rock. Metric One: Percentage increase in the number of target industry companies approaching the Round Rock Chamber of Commerce for information about the city. Performance Goal One: The number of target industry companies contacting the Chamber should increase each year for the next five years. Higher percentage increases should occur in years 3 -5 of the marketing initiative. This metric indicates the effectiveness of the marketing message and distribution channels. Metric Two: Percentage increase in the number of target industry companies visiting Round Rock for site selection. Performance Goal Two: The number of target industry companies visiting Round Rock to examine potential sites for expansion or relocation should increase each year for the next five years. This metric indicates the effectiveness of the marketing message, follow -up, and distribution channels. Metric Three: Percentage increase in the number of site selection visits as a result of information inquiries. AngelouEconomics 97 Performance Goal Three: The percentage of companies visiting Round Rock after inquiring and receiving additional information about the city should increase. This metric indicates the quality and persuasiveness of Round Rock's follow - up marketing effort (both collateral and personal contact). The following table contains recommended performance goals for prospect - related metrics: Year Moderate Success High Success One 5% increase 10% increase Two 5% increase 10% increase Three 10% increase 15% increase Four 10% increase 15% increase Five 10% increase 20% increase TOTAL 50% increase over 5 years 100% increase over 5 years Media Metrics Media related metrics measure Round Rock's public relations success. Marketing Strategic Plan Metric One: Number of times Round Rock is mentioned in target industry publications. Performance Goal: The number of times Round Rock is mentioned in target industry publications (such as trade joumais, business publications, and industry news websites) increases every year for the next five years. Success counts only if Round Rock is mentioned as a location for the specific industry sector or if a Round Rock -based company is mentioned. This metric indicates the effectiveness of Round Rock public relations and whether its marketing message is creating a "buzz" among industry influencers. AngelouEconomics 98 Distribution Metrics Marketing Strategic Plan Distribution metrics measure the utilization of and flow of the marketing message through distribution channels. Metric One: Presence of Round Rock at target industry events. Performance Goal One: Round Rock becomes more visible within its target audience community by attending, sponsoring, or hosting industry events. Increasing the number of events Round Rock attends is not as important as improving the quality of the event and the level of attention the city receives at the event. It is recommended at a minimum that the Round Rock Chamber and other Round Rock promoters: • Attend every target industry event occurring in the Austin MSA • Attend 5 target industry events per year within the U.S. • Is a regular /annual attendee at least 3 national target industry events The city should select at least three major target industry events to attend each year. Round Rock should increase its visibility at these functions by purchasing exhibition space or sponsoring the event or a function at the event (i.e., reception, cocktail party, etc.) This metric measures how well Round Rock is networking with industry decision makers and consistently distributing its marketing message. Metric Two: Promotion of the Round Rock community by non - Chamber constituents. Performance Goal Two: The number of times Round Rock is promoted by non - Chamber entities increases. Promotion may take many forms, such as companies distributing Round Rock marketing collateral, developers including Round Rock city information in their own promotional efforts, or local organizations including links to the Round Rock Chamber website on their own. Round Rock -based real estate developers, school districts, and companies benefit by promoting the community. The role of the greater Round Rock community in marketing is discussed in detail within another section of this report. AngelouEconomics 99 Marketing Strategic Plan The following table contains recommended performance goals for media- and distribution- related metrics: Metric Goal Indicator Number of information inquiries from target audience Number of target companies visiting Round Rock Number of site selection visits resulting from information inquiries Number of times Round Rock is mentioned in target industry publications Presence and activity of Round Rock at target industry events Number of times Round Rock is promoted by non - Chamber entities Annual increases of between 5% and 20% for 5 years, with higher increases in years 3, 4, and 5 Effectiveness of marketing message and distribution channels Effectiveness of follow -up marketing effort and distribution channels Quality and persuasiveness marketing message and follow -up Effectiveness of public relations and level of "buzz" among influencers Effectiveness of person - to- person marketing and networking Effectiveness of internal marketing AngelouEconomics 100 Marketing Strategic Plan What is Round Rock selling? One essential aspect of marketing is the connection between the product and the message. At the most basic level, economic development products are the land, buildings, and people of the community. The opportunity that is created by a combination of those elements is also a characteristic of the product. A city differentiates itself by narrowly defining its product. Is the region, for example, a low cost place to conduct business or does the region offer the highest quality of life to its residents? Are the characteristics of the city better suited for service providers or manufacturers? With so many regions competing to recruit new companies, Round Rock's definition of what it is selling should be clearly aimed at its target industries. Round Rock offers companies in business and professional services, retail trade, and health care sector access to a large, prosperous market of individuals and companies. The community's business friendly climate and family- focused environment have contributed to the success of global high tech companies and local entrepreneurs. Round Rock is committed to creating an environment where companies and individuals can reach their maximum potential. What should Round Rock communicate? Round Rock has many attributes important to its target audiences. The city enjoys a rich family environment. Residents have access to the resources of a large metropolitan area, while enjoying a small -town environment with high quality schools. Round Rock businesses operate in a business friendly environment containing a supportive Chamber of Commerce. This description of attributes, however, is similar to the message transmitted by hundreds of other communities in the U.S. The question, then, is how to create a unique identity for Round Rock. What should the city communicate that makes it stand out in the mind of its target audiences? AngelouEconomics 101 The thrust of most economic development marketing campaigns can be summarized as one of three themes: cost, quality, or uniqueness. The Cost Theme Communities who center economic development marketing around the cost theme encourage companies to select their region because it is a less expensive place to find workers or conduct business. The cost theme has been especially effective for regions that are in the beginning phases of economic development or are less competitive in other arenas such as workforce education and standard of living. The Quality Theme Marketing Strategic Plan Many communities emphasize quality of life as a top reason for businesses to expand there. Quality of life themes are visible in most economic development campaigns, limiting the effectiveness of the marketing message as a true differentiator of regions. This theme forces site selection choices to become subjective, reduced to a matter of the personal opinion of executives. This theme is especially utilized by communities in which the cost of conducting business is relatively high. Boulder, Colorado, for example, is an expensive location for living and doing business, but its proximity to the mountains and temperate climate are strong draws to move to the region. As companies find it increasingly difficult to find skilled employees, quality of labor force has become another popular quality theme. Regions with large inflows of young people, particularly in university towns, have emerged in the technology site selection spotlight because of their ample supply of college graduates. The Uniqueness Theme Some regions have centered their economic development marketing messages on some unique quality. This selling point is often based on their strengths in specific industries. The few U.S. cities containing automobile AngelouEconomics 102 manufacturing clusters, for example, have focused economic development efforts on recruiting suppliers or associated research and development companies. These campaigns may also be built around special geographical or historical events that are unique to their communities. Cost savings and quality of life are important elements of the site selection decision making process, but often overused themes in economic development marketing. For Round Rock's promotion to stand out compared to competitor cities', it should convey a unique primary message. The details of cost, infrastructure, and quality of life are most definitely important to selling Round Rock, but may be communicated after the primary message ( "the hook ") attracts attention from its target audiences. As a general guideline, Round Rock's primary message should: • Communicate one single thought • Differentiate the city from its competitors • Address the concerns of the target audience • Be defensible The goal is to create a single message for Round Rock that gets the city on the "radar screen" of site selectors from its target audiences. The city's attributes such as its family- focus, small town environment, quality schools, and business friendly climate are tremendous selling points, but first the city needs to draw attention and create buzz within its target industries. Using the secondary marketing message too early in a campaign is a common mistake among communities. Many economic development efforts attempt to squeeze all of their attributes into one primary marketing message. This inevitably violates the guidelines of marketing listed above — attempting to communicate more than one message at once makes it difficult to differentiate between one region's muffled marketing message and another's. AngelouEconomics Marketing Strategic Plan Primary Marketing Message • Attention grabbing • Unique message •Puts Round Rock on site selection radar screen • Meant for mass promotion Secondary Marketing Message • Occurs after initial inquiry •Touts cost and quality • Custom tailored for specific industry •Provides site selection details 103 Marketing Strategic Plan Round Rock's objective should be to create a single, clearly stated primary marketing message. The message should attract the attention of the target audiences without overburdening them with facts and figures. It should contain a theme that appeals to all target industries. It should also drive the audience to seek additional information about Round Rock and make the city top -of -mind for site selectors and company executives. A positioning pyramid is a technique used to determine the primary and secondary messages. It answers three questions: What is Round Rock's product? What are the city's benefits? What does Round Rock stand for? This technique was used during workshops with Round Rock's business and community leaders. During these workshops, AngelouEconomics received input that helped create the primary and secondary marketing messages recommended in this report. Earlier in the report, the question of Round Rock's product was answered. Round Rock's product should be stated at the simplest level: A medium -sized city located in Central Texas experiencing high economic and population growth. The question of Round Rock's benefits was answered in the Community Assessment portion of this report. The city's attributes are those economic, demographic, entrepreneurial, and site characteristics in which Round Rock performs better than other communities competing for the same target industries: Access to a prosperous market of individuals and companies. A historical community with a family - focused environment and business friendly climate. A city that has contributed to the success of global high tech companies and local entrepreneurs. A community committed to creating an environment where companies and individuals can reach their maximum potential. The question of what Round Rock represents is the most critical part of the marketing plan. It the message first communicated to the city's target audience — the first impression. AngelouEconomics 104 What does Round Rock stand for? Success Marketing Strategic Plan The first objective of economic development marketing is to develop a primary marketing message. This is the core of all future promotional activities, although the idea or words themselves might not be specifically stated in marketing materials. Based on the input received throughout this project, one dominant theme emerged that also encompassed almost other concepts and messages. That is, what Round Rock represents more than any other idea is: Success is an important aspect of Round Rock. It embraces the spirit of the city and builds on the outstanding success of Round Rock businesses, schools, and individuals. The word "success" embodies a universal human goal. It is a future - oriented word that transcends industries and cultures. Round Rock is a unique community in the level of success it has accomplished so quickly during the past decade, as well as its potential for success in the future. Round Rock creates successful individuals and businesses. If your company moves to Round Rock, it too can experience success in this well- rounded community. Round Rock's positioning pyramid is illustrated on the following page. The chart summarizes the input AngelouEconomics received during its marketing workshops with city leaders. This pyramid should form the core of future promotional efforts. All graphics and text in Round Rock collateral should convey the theme of "success." Text copy in collateral and correspondence with target industry companies should promote the assets listed below. AngelouEconomics 105 Marketing Strategic Plan ound Rock's ass at is Round Rock's product? large, prospero igh concentration o es; Family and busines ate with small town atmosp m -sized city in Central Texas exp gh economic and population growth Center of Hometoa comps cli What does Rou What ar stand for? s market; tech -based friendly ere riencing What are Round Rock's key themes for advertising? Advertising is the implementation of the marketing theme (what Round Rock stands for) in the form of a brand identity, brand applications, and a tag line. Effective marketing will require commitment from Round Rock community leaders and businesses to carry the theme. Most importantly, the region must coordinate all economic and business development initiatives under one single brand identity. If more than one brand is marketed from Round Rock, from local real estate developers, sports teams, or economic development organizations for example, the message will dilute and not reach the target audiences with the same level of impact. Round Rock should market its economic development initiative under a single name. Because Round Rock is not yet a nationally recognized community, the city should begin by establishing its name identity. While the small town, Old West theme that Round Rock has been utilizing is attractive to some, it may not appeal to all companies which may be searching for a progressive dynamic community. Because Round Rock's brand identity is not AngelouEconomics 106 established at a national level, few companies will recognize that Round Rock is part of a thriving technology center. The first impression Round Rock's current theme conveys is that of a small town located in a remote area. The objective is to show that the city is a (1) family- oriented oasis (2) located in a booming metropolitan region. The combination of the two helps its companies and residents reach their maximum potential. Recently, many communities have made the mistake of modeling their brand identity off of the success of Silicon Valley. Almost 100 "Silicon Somethings" have been marketed during the past five years. The communities marketing as, for example, "Silicon Cornfield" or "Silicon Desert" have lost the connection between their audience and the place. As one executive recently stated, "Silicon - -- seems like a great place to locate my company, if only I knew what city it was." A simple identity and clear message will benefit Round Rock. To avoid the problems encountered by other communities currently marketing as a "Silicon Something" or other alternative name, it is recommended that Round Rock use the city's name as its brand identity. This will help establish the name "Round Rock" at the national level while forming an immediate connection between the target audience and the place. Round Rock's brand identity and tag line are recommended in the box below. The brand and marketing themes offered in this report may not be the ones selected by the city for its economic development campaign. They are instead, provided as an example of the style and usage of Round Rock's future brand identity. Example: SlIccessjstar r r Marketing Strategic Plan t x AngelouEconomics 107 Sample Marketing Campaign Material (individual pages following report): 1, uivt, -3.1.A0 7. FERMI I.* LLCS 17 O_ .V$jar 0.CM trillr. r r I Round Rock schools are top lathe n=tion - • n 1 2 Teitif UM fin 0 ,Otaara 1,,o,C•3 r ROUND ROCK I Oasts oted Round Rock ranked 01 - t le, rt.ntte sn Pi 1 r r I ROUND ROCK VI: g Home of successful living. to-:_t 't1rk5 get.. 101.11.1 111 ■S:rt111*1200,1 d Nur. /bet en,. 43 aeh., 00 7410....4 onatYmanoirtet!to/1 r I ROUtID ROCK e X Home base for the Round Rock Express. ,,,,,,Jsr1aff Ice ni.lf,a1,,,11 JAR • .14 1 R°11 t r .‘, 1 11 1 125 ,1 S.w. I t Marketing Strategic Plan Home of Dell. 41 ‘ . . .. " ., • „, ..5111 nt. 1.4,r4 Caffra, 114 • W ROUND ROCti I 1 l? ft I Educated, high - _-7.7.irin • . ' ' FI:11 V,V*1....1.••••■•. R.0 UND'ROCK . I g I Where will you start your success? r IR oulimam y: AngelouEconomics 108 Marketing Strategic Plan Additional examples of the brand identity and tag line are included in the appendix. AE recommends that Round Rock involve a professional advertising agency and graphic designer to polish the advertising themes presented in this report. The following discussion regarding the tag line and guidelines for its use are provided as an example for the purpose of this report. "Success Starts Here" is recommended because it captures several of Round Rock's promotional objectives. First, the word "success" is the city's recommended marketing theme. "Success Starts Here" conjures images of the city as a great place for entrepreneurial start-up companies. It also embodies the success of large homegrown companies such as Dell Computer and MagRabbit. Round Rock's outstanding school district is a starting place for young individuals to begin a successful life and career. Nolan Ryan chose Round Rock as the location to start his successful minor league baseball team. The city's commercial real estate developments, such as La Frontera, are locations where businesses can achieve success by accessing the tremendous resources of services, labor, and market for their products. The following guidelines are provided to ensure consistency in the message and appearance of all promotional activities. • All marketing generated in Round Rock aimed at recruiting the expansion or relocation of target audience companies contains the brand identity "Round Rock" and the tag line "Success Starts Here." • "Round Rock" and "Success Starts Here" consistently appear in the same type font and color. • The specific department or program name is added to the end of "Round Rock" and is followed by the tag line "Success Starts Here." For example: "Round Rock Chamber of Commerce" followed by the tag line "Success Starts Here." • The tag line is placed below "Round Rock" in all promotional activities. • The word "success" is contained throughout advertising and promotion copy. It is the visual and textual theme for all of Round Rock's promotional activities. AngelouEconomics 109 Marketing Strategic Plan Internal Marketing: Selling the Concept to the Community In 1996, a region of Europe developed an economic development strategy to recruit technology companies. The strategy contained a marketing campaign complete with a new brand image and marketing theme. Economic development organizations in the region began to market at large industry events and began receiving media attention in top trade publications. Within the first year, five technology companies visited the region. Within months of launching the campaign, a political debate erupted within the region. Some political entities did not agree that technology was the best way to develop the economy. Other groups felt that they had important contributions to make, but had been left out of the process. The result was a complete shutdown of the initiative. The region's business and political leaders became so entangled in the dispute locally, that they ignored the positive impacts the external marketing campaign had generated. Within two years of beginning, the marketing effort dissolved. This story illustrates the importance of gaining internal support for economic development marketing prior to launching a campaign to the outside world. Before an external marketing campaign can begin, Round Rock must prepare for and organize within the city. With strong internal support, the chances of successful marketing increase. Round Rock must be able to deliver on the promises its marketing message contains. For example, if the message boasts a rapid permitting process — making it faster for new companies to start achieving success — then the responsible permitting offices should ensure that timing meets the audience's expectations. Being prepared to deliver on the marketing promise is often overlooked. Many communities make the mistake of launching campaigns before solving internal problems. Marketing too soon, before the community is prepared, can create long -term image problems. The target audience will not give Round Rock a second chance to make a good impression. AngelouEconomics 110 Round Rock will be prepared to implement its external marketing strategy when: Marketing Strategic Plan 1. Business and community leaders within Round Rock commit to a single marketing message aimed at the target industries. Multiple brands and messages will confuse the target audience. One strong brand should be selected and promoted by all private and public organizations promoting Round Rock. 2. Round Rock has a single web site developed for economic development marketing purposes. The site may be built around an existing one, such as the Chamber of Commerce's, but it is important that the entire community market this single address. All graphics and text contained on the web site should reflect the theme of "success." 3. Target industry champions are identified and committed to carrying the technology message. Within every successful region are private- sector business leaders who champion the recruitment of new business. These individuals feel passionate about the economic development of their city and have powerful connections within their industry. They can be called on to meet with site selectors or volunteer to speak at investment events promoting Round Rock. 4. A standard prospect handling protocol is established. The process of handling prospects when they visit Round Rock should be standardized. One and two day agendas should be designed that contain meetings with academic, public sector, and industry leaders. A list of business champions and key public sector officials should be developed for entertainment events with the prospect. Preferred hotels and restaurants should be identified. A single contact person at the Chamber should coordinate all travel and meetings with the prospect. This standard prospect handling protocol will help the Chamber react quicker to short- notice prospect visits. 5. The city utilizes marketing resources both inside Round Rock and in the surrounding region. Many companies seeking sites in Round Rock will be interested in the entire Austin MSA market. One key to Round Rock's marketing efforts will be promoting its position within a large prosperous market. The Chamber should consider including a tour of the greater Austin market in its prospect handling protocol and including regional economic information in its promotional packages. AngelouEconomics 111 Marketing Strategic Plan 6. Local media champions are identified who will carry the economic development message to the Round Rock public. Local newspapers, neighborhood and company newsletters, and websites are good tools for communicating information about the economic development campaign to residents. The Chamber may develop a series of short articles announcing the "Success" campaign, discussing the reasons behind the initiative, and telling residents how they can become involved in promoting their city. Accomplishing these guidelines will require internal marketing that educates and creates excitement. Internal marketing events, staff training, and use of local media are good avenues for 'building the local buzz." Internal marketing activities should be launched during a roll out event. During the event, the Chamber may unveil the new marketing message and educate Round Rock's industry, public, media, and academia sectors about the target industries. A high profile private sector executive should act as the keynote speaker, encouraging the audience to support the new economic development initiative. Involving target industry constituents in planning or sponsoring the event will help create buy -in prior to the event. The roll out event should also be used to set community -wide goals for marketing. Internal marketing will be more successful if the community works toward common goals. Goals may center around various topics, such as: • Recruiting a specific employer from the retail, business and professional services, health or technology sectors • Recruiting a specific number of target industry companies within a set time frame • Improving and setting infrastructure development encouraging the location of companies from the target industries • Improving workforce development, such as cooperation between employers and local schools, that create skilled workers for target industries Round Rock may divide into task forces dedicated to each goal. This strategy will move some economic development responsibility from the Chamber and into the hands of community leaders. AngelouEconomics 112 Marketing Strategic Plan External Marketing: Selling Round Rock to the Target Audiences Consider the target audiences when determining which collateral materials to produce or in which promotional activities to engage. Traditional economic development promotions typically include a brochure and a detailed folder of information for follow -up and site selection requests. Recently, CD ROMs containing presentations and links to the economic development organization's web site have become popular. These forms of promotion may not be best suited for Round Rock. In fact, response rates to direct mail outs are dismal and printing costs for high -end collateral are extreme. Round Rock requires marketing techniques that put the city in direct personal contact with prospects. The industries Round Rock is targeting are sophisticated. Round Rock will be competing against other powerful regions throughout the U.S. and the world for these companies. The city's image must reflect that it is located in a sophisticated global region. The distribution channels communicating this image should also be sophisticated and generate big benefits at a reasonable price. Round Rock should rely less on printed materials and more on Internet and personal contact. The Round Rock web site should serve as the central source of information about the community and include everything from a complete company database to a news wire service. Personal contacts at industry events will form the relationship between the city and its target industries that print materials can never accomplish. The following six distribution channels are recommended for Round Rock. They represent low cost, highly effective methods for reaching the city's target industries. 1. Round Rock Web Site Resources that would traditionally go into the development of printed collateral materials should be focused into an on -line marketing approach. At the core of the approach will be an enhanced version of the current Round Rock Chamber's web site. This web site will become the ultimate guide for any individual or company considering relocation to Round Rock. AngelouEconomics 113 Marketing Strategic Plan The style of the web site should adopt the appearance of a sophisticated company. The web site's graphic theme should tie into the overall theme of ''success." The tag line "Success Starts Here" conjures many interesting graphic images. The home page should contain the clear message that Round Rock is the location for individuals and companies looking to become more successful. It should not, in any way, appear to be developed by a government organization. As the first stop for information about the city, the web site may contain the following four components: Round Rock Company Database — It is important that information about local companies is easy to access and in a standardized format. Few communities have good online databases of companies. When prospects consider a new location, they want to know what other companies are located in the region. They may also want to contact those companies. A complete online database of Round Rock companies, sorted by industry, will serve as a strong selling point for the city. The Chamber may start by posting the names and contact information of member companies, updating information at least every six months. Round Rock Economic and Industry Information — The Chamber website already contains excellent economic information about the city. This information may be expanded and break out data specific to each target industry. Market analysis specific to each target industry (estimated Round Rock and Austin MSA market demand, for example) should be calculated and posted on the web site. Round Rock Job Postings — The Chamber's web site could become a central location for all target industry job openings in Round Rock. Companies could post job openings on the web site and job seekers could post their resumes. The job pages could also link to online job search software such as www.monster.com. If job postings are included on the Round Rock web site, it is recommended that the Chamber announce this resource to the campus career centers at the University of Texas, Austin Community College, St. Edwards, and other regional colleges. These schools could post resumes of graduating students on the site. AngelouEconomics 114 Marketing Strategic Plan Round Rock News Wire — The Round Rock web site could become the single source of all press releases from Round Rock companies, schools, public entities, and community organizations. This virtual public relations site will serve as the local news wire. Round Rock should request that the online news wire be added to the distribution list for press releases from local businesses and organizations. In return, the Round Rock news wire distributes the press releases it receives to its own list of local, state, national, and intemational publications. Companies should be persuaded to include standardized text at the bottom of all press releases. For example, the statement could be a few short sentences "Company XYZ is located in Round Rock, Texas. The city is dedicated to the success of companies in the industry. For more information about Round Rock, please visit www.RoundRockChamber.com. 2. Publicity Publicity may be the most effective form of economic development promotion. Due to the high number of successful companies in the city, Round Rock has generated positive publicity in the past. The news wire recommended above could significantly increase the amount of publicity the city receives in publications read by its target industry companies. The distribution list for Round Rock and company press releases must include publications that its target industries trust. 3. Industry Events Industry events provide a great opportunity for Round Rock representatives to distribute the city's marketing messages. While electronic marketing should be the top priority, face -to -face marketing is recommended to supplement other marketing efforts. Industry events are ideal channels for personally interacting with target industry decision makers. There are three ways for Round Rock to become involved in industry events: Attendance — Round Rock should send representatives to the annual trade shows or conferences of its top industry targets. Representatives should never miss large target industry events occurring in the Austin area, Houston, or Dallas -Fort Worth Metroplex. The Convention and Visitors Bureaus of these cities will have information about upcoming events on their web sites. AngelouEconomics 115 Marketing Strategic Plan Exhibition Space — Round Rock should identify between 3 and 5 industry events each year to attend and purchase exhibition space. The booth should promote Round Rock as a place for relocation and expansion. The appearance of the booth should convey the "success" theme, the new Round Rock logo, fonts, and colors. Sponsorship — Round Rock should sponsor 1 or 2 industry events each year. Sponsorships are most effective if they relate to a specific activity, such as a luncheon or cocktail hour, during the industry event. Only sponsor activities that result in individual recognition of Round Rock during the event. It is also important, as with all industry event activities, that Round Rock consistently sponsors the same event each year for a minimum of three years. This repetition will better establish the city's identity. Round Rock should consider using "guerilla marketing" tactics at industry events. These tactics are relatively low cost methods to achieve high visibility. Round Rock, for example, could rent limousines marked with large "Round Rock (and tagline)" logo magnets and park them outside of Austin -based industry events to transport attendees on a tour of Round Rock and the region. Round Rock could also produce doorknob hangers containing the new logo, web site address, and booth number and place them on the doorknobs of every convention center hotel room the night before the event. Round Rock should consider participating in events that are (1) industry- specific that draw large groups of people from companies around the world or (2) exclusive events or symposiums that bring together top industry executives. The most effective promotion at these events occurs on a regular basis and reiterates the message to attendees, showing that Round Rock is committed to recruiting their industry. 4. Industry Associations Industry associations offer the opportunity to track industry news, industry events, and to become involved in smaller -scale events within the Round Rock community. Industry associations are also a trusted source of information for their member companies. Round Rock should consider joining several top associations of their target industries, and placing articles in industry association newsletters. (A sample list of relevant industry associations is included in Appendix B of this report) AngelouEconomics 116 Marketing Strategic Plan 5. Trade Missions Round Rock should consider engaging in trade missions to recruit target industry companies away from other regions. Round Rock should schedule two trade missions per year to a region with a high concentration of its target industries. Representatives from business, government, and academia should attend trade missions. They may be coordinated with trips to attend industry events. The missions will involve a series of meetings with local companies to sell Round Rock as a good location for companies in their industry. They may also include recruiting trips to local universities to convince high skilled workers to move to Round Rock after graduation. 6. Collateral Consistency of image is critical to Round Rock's marketing effort. All materials, printed and online, must illustrate the theme of success. Font, colors, logos, and message must be duplicated on all collateral. Though brochures are not recommended as Round Rock's promotion tool, all materials generated by the Chamber must contain the consistent theme and design. This includes business cards, letterhead, PowerPoint templates, table top displays, background graphics for email correspondence, and format for site selection proposals. AngelouEconomics 117 Potential Marketing Budget Initiating the comprehensive marketing campaign as outlined in this report will require that Round Rock expend significant more on its marketing efforts than its current levels. The prospective budget as presented to the right is an example of the expected cost of each component. While AE recommends implementing each aspect of this plan, depending on available funding the city may begin with certain items and build up to a comprehensive program in subsequent years. (Web site and collateral material development generally represent "one -time" expenditures. The budget cost for maintaining /upgrading web sites and replenishing collaterals will be Tess in subsequent years than the initial expenses listed.) AngelouEconomics Marketing Strategic Plan Prospective Marketing Budget Web Site Collateral Materials Stationery - logo Community brochure CD $20,000 $15,000 $45,000 $20,000 Research Materials $8,000 Trade Show booth $15,000 - $20,000 Marketing trips Three trips for 6 people $60,000 Conference/Trade Show (4) total $12,000 Real Estate Company Familiarization Tours with decision influencers (4) times with 5 people TOTAL $10,000 $205,000 - $210,000 118 Conclusion Marketing Strategic Plan Important promotional efforts for Round Rock during the next three to five years include: • Developing and maintaining a single web site for all Round Rock marketing • Generating publicity aimed at Round Rock's target industries • Attending and sponsoring top target industry events • Involving Round Rock representatives in major target industry associations • Organizing annual trade missions to cities containing high concentrations of target industry companies While it is critical to involve the entire community in marketing Round Rock, a leadership organization should be identified that coordinate activities. Round Rock Chamber should either assign the task to one of its existing committees if appropriate or create a new economic development marketing task force. The task force's responsibilities should include (1) prioritizing the recommendations contained in this report, (2) coordinating the implementation of marketing recommendations, and (3) building the buzz within other Round Rock companies and organizations. Internal marketing is the first priority of Round Rock's new economic development initiative. Establishing a single identity and image and then convincing other Round Rock organizations to adopt the identity should be the Chamber's first action. A roll out event should be organized to recruit support for the new marketing plan. The Chamber and marketing task force should meet with local organizations responsible for permitting, infrastructure, and taxation to ensure that the marketing message will not contain promises that cannot be kept. External marketing should only occur after the Success initiative is organized internally. The city must have made significant progress in accomplishing the six items listed in the intemal marketing checklist contained in this report. The marketing message, identity, and tag line must be consistent in all external marketing. While Round Rock has achieved amazing successes over recent years, implementing a new strategic marketing plan will bring Round Rock into a higher tier of nationally recognized cities. By uniting the community behind a AngelouEconomics 119 Marketing Strategic Plan single message, Round Rock will increase its awareness among targeted high growth industries and bring more of these companies to the city. The result will be a stronger, more diversified economy providing greater opportunities for success for all Round Rock citizens. AngelouEconomics 120 Recommendations & Implementation Guidelines Recommendations & Implementation Guidelines Recommendations & Implementation Guidelines AngelouEconomics has prepared recommendations for Round Rock based on the results of the Community Assessment, Target Industry Analysis, and Public Input. Each recommendation includes goals and specific action items as well as a listing of the primary groups responsible for implementation. The recommendations focus on the following areas: I. Business Development & Recruitment II. Marketing Round Rock 111. Economic Infrastructure Issues IV. Regional Strategies V. Economic Development Organizational Issues AngelouEconomics 121 Recommendation 1: Business Development & Recruitment Responsible Entity Timeline Funding Goal/Task Primary Secondary Start End Needed Goal A: Identify new industry targets for recruitment Task 1: Identify new target industries/businesses Task 2: Initiate target marketing campaign (See Recommendation II) COC /City 10/01 3/02 (ongoing) Goal B: Strengthen retention efforts /services for existing businesses Task 1: Create Major Employers Task Force Task 2: Initiate Small Business Executive Roundtables Task 3: Promote/increase networking programs Task 4: Review /create member & technical assistance programming COC City 1/02 4/02 (ongoing) $2.5K $2.5K Goal C: Encourage local entrepreneurship Task 1: Identify needs of local entrepreneurs Task 2: Expand local small business incubator Task 3: Introduce city recognition program for start -ups COC City 3/02 7/02 (ongoing) Goal D: Review /update city's incentive programs City 1/02 3/02 Goal E: Review economic development impact analysis model City /COC 1/02 3/02 $5 -10K Recommendation I: Business Development & Recruitment The need for diversification of Round Rock's economic base was the most critical issue identified in the community economic assessment and industry analysis. The attraction of target businesses and industries will improve economic opportunities within the city as well as expand the current tax base. in addition to recruiting new businesses to Round Rock, the city must also make every effort to retain and strengthen its existing industries and encourage entrepreneurship. Building Round Rock and Williamson County as stronger employment centers will help promote regional reverse commuting, which may alleviate traffic congestion along 1 -35 and allow residents to work closer to their homes. Goal A: Identify and recruit new target industries AngelouEconomics Recommendations & Implementation Guidelines The first step in diversifying Round Rock's economy is to identify and recruit new businesses and industries. This process will require agreement within the community on what these target industries should be. A comprehensive recruitment plan to attract these businesses should then be implemented. 122 Task 1: Identify new target industries and businesses Task 2: Initiate target marketing campaign Recommendations & Implementation Guidelines Based on AE's target industry analysis, an inventory of local businesses, and community input, the following industries should be targeted by the city of Round Rock for recruitment. Every effort should be made to become familiar with these industries, including how they operate, how site selection decisions are made, the major players, and industry trends. (Please refer to the Target Industry Assessment section of this report found on page 35 for a detailed analysis of these industries and why they were chosen.) Primary Targets 1) Technology Sectors Primary: Telecommunications, Software /Multimedia /Data, High Tech R &D Secondary: Electronics, Semiconductors, Computer Equipment 2) Professional & Business Services 3) Retail 4) Health Services Secondary Targets 5) Bio- Technology 6) Entertainment/Restaurants Once the community has agreed upon its target industries, a comprehensive plan to recruit these businesses to Round Rock needs to be initiated. The implementation of this campaign is outlined in Recommendation II: Marketing Round Rock. Goal 2: Strengthen retention efforts and support services for Round Rock's businesses In addition to attracting new industries to Round Rock, the retention• and expansion of existing businesses should be a priority of City and Chamber efforts. Existing companies represent Round Rock's most important opportunities for retaining existing jobs and expanding the current employment base. Conversely, difficulties or cutbacks within these companies which result in lay -offs or business closures directly impact the city's economy in adverse ways. The following AngelouEconomics 123 tasks seek to establish or strengthen Chamber programs which address the needs of Round Rock's business community. Another important goal of these tasks is to engage the city's business leaders whose input and involvement is critical to economic development efforts. Task 1: Create Major Employers Task Force Round Rock's major employers are some of the city's most important community members. The Chamber of Commerce should establish a Task Force comprised of the city's top 30 employers to address issues which directly impact their business operations and employees. These issues may include such areas as workforce development, business climate, infrastructure, and legislative agenda items. To be successful, this Task Force should operate under a meeting format and schedule that would be most beneficial to its participants. Through this Task Force, these companies should also become directly engaged in implementing this Strategic Plan by helping to recruit target industries and market the city. Members of this Task Force may also be considered for future membership on the Chamber's Board of Directors. Task 2: Establish Small Business Executive Roundtables Recommendations & Implementation Guidelines Round Rock's small business community is as important to the city as its large corporations, although their needs and interests differ substantially. For this reason, the Chamber should establish Small Business Executive Roundtables to address their particular concems. The executive roundtable format allows for small business owners to meet monthly to discuss problems and opportunities specific to their circumstances. As with the Major Employers Task Force, the Chamber should survey small businesses to determine their most pressing needs and how the Chamber can most effectively provide assistance to meet these needs. Task 3: Promote /increase networking programs One of the most invaluable services offered through a chamber of commerce is the opportunity for business owners from throughout the city to interact with others on task forces, committees, roundtables, and social programs. Networking allows these owners to discuss solutions to similar business problems, gather business leads and AngelouEconomics 124 contacts, discover local suppliers or clients for a particular product or service, and create cohesiveness within the community. The Chamber should increase promotion of its existing programs, such as its Business After Hours, Monthly Breakfast Club, and Quarterly Member Luncheons, as well as explore new opportunities for encouraging Round Rock's business owners to network both locally and regionally. Task 4: Review /create Chamber member and technical assistance programming Recommendations & Implementation Guidelines The strength of the Round Rock Chamber of Commerce depends on its capacity to attract new members as well as sustain its existing membership. The more benefits businesses receive from the Chamber, the more likely they will support the organization through membership. In addition to the programs suggested in Tasks 1 — 3, the Round Rock Chamber of Commerce should evaluate all of its member and technical assistance programs for effectiveness in meeting the needs of the city's business community. Current member and general programs include the following: • Membership Directory • Participation in annual Business Round Up • Monthly newsletter, "The Reporter" • Quarterly Membership Luncheons • Business referrals • Business After Hours • Access to mailing lists & labels • Monthly Breakfast Club • Inclusion in "Goodie Bags" for special • Seminars and workshops events /tou rists Examples of other services the Chamber may consider offering include: • Referral to local Small Business Development Center (SBDC) or similar for technical assistance (consultation on business plans, cash flow analysis, financing, corporate structure, site selection, merchandising, legal advice, etc.) • Access to credit, such as through a loan pool arranged through local lending institutions, or referral to existing capital venture and microloan programs • Job /resume bank • Workforce development and training referral AngelouEconomics 125 • Group insurance benefits for small companies • Co -op advertising in local /regional /national publications • Business recognition & awards programs • Promotional /seasonal events and activities • Promotional /marketing materials on Round Rock • Advocacy on relevant legislative issues • Business /industry mentorship programs • Information clearinghouse of city programs, commercial developments, community issues, demographics, etc. Goal C: Encourage local entrepreneurship Most of today's largest corporations once began as an idea and a simple operation, such as Michael Dell putting together computers in his dorm room at the University of Texas. In addition to recruiting companies and assisting existing businesses, the Chamber should also work to promote local entrepreneurship. Even small self - employment and home - based enterprises promote the economic sufficiency of residents, help to diversify the local economy, and can lead to potential job creation. Task 1: Identify needs of local entrepreneurs Task 2: Expand Round Rock's local small business incubator Recommendations & Implementation Guidelines Start-ups typically have similar needs to existing businesses, but on a much different scale. For example, their initial needs may be assistance with accessing credit and financing, creating a business plan, finding appropriate space, and generating leads. The Chamber should seek to identify the needs of Round Rock's local entrepreneurs and develop and market programming specifically geared to helping them grow their businesses. Connection Station, the city's Microenterprise Assistance Center (MAC), currently houses five small start-up businesses and is managed by the Department of Planning and Community Development with assistance from the Chamber's Better Business and Trade Committee. Because the program is funded almost entirely from HUD AngelouEconomics 126 Task 3: Introduce recognition program for start-ups Goal D: Review and update city's incentive programs Recommendations & Implementation Guidelines Community Development Block Grants (CDBG), applicants must qualify under certain income guidelines. Member businesses are provided computers, office equipment, and supplies within a 1600 square foot space rented from another business. The Center's first two businesses will "graduate" in early 2002, after which time they will be encouraged to locate their businesses within Round Rock. While MAC has been successful with its first member businesses, the program needs to be expanded to allow more local entrepreneurs to participate. The current space allows for only one - employee operations and is not easily accessible to the members' customers. Sponsorship beyond HUD funding is necessary for this expansion to occur. Local corporate buy -in should be sought to help provide new space and donated office equipment. Increased Chamber programming for start-ups, through seminars, business counseling, networking, and mentorships, will also be important. City and Chamber administrators may look to other incubator programs, such as the Austin Technology Incubator, as models for financing, structure and by -laws. Another way for the Chamber to support its local entrepreneurs would be through the creation of a formal recognition program for start-ups. In addition to acknowledging innovative ideas likely to be successful, such a program would provide needed exposure and publicity to promising young companies. This program would also assist the Chamber in outreaching to entrepreneurial activities which are often difficult to assess within a community. In today's competitive economy, almost all communities offer incentives as part of their business development activities. While some cities must offer these incentives across the board to all recruited companies, others such as Round Rock are fortunate to be able to develop packages on a deal -by -deal basis depending on the project's potential benefit and its capacity to meet specific needs within the city. Incentives should be available to both expanding local businesses as well as relocating companies with an emphasis on the target industries. These policies should be reviewed annually by city officials to ensure incentives are appropriate, equitable, and economically justifiable. The most effective incentive programs will be based to the needs of the company and may require coordination among the City of Round Rock and its AngelouEconomics 127 Recommendations & Implementation Guidelines various departments, the Chamber of Commerce, workforce development service providers, Texas Department of Economic Development, and other area business resources. Possible incentive options include the following: • Property Tax Abatement — discounting or revoking property taxes for a specific time period to encourage new business location at a particular site or for a particular business use • Sales Tax Rebates — rebating a portion of sales tax rebates with a company responsible for generating significant retail sales within the city, such as Round Rock currently does with Dell Computer Corporation • Site Selection Assistance — determining needs, identifying available land, facilitating land acquisition or rental, assisting with zoning and city code requirements • Rent Subsidies — subsidizing a portion of monthly rent for a desired tenant which would not otherwise be able to afford or choose to locate at a particular targeted site • Tax Increment FinancincL designating a Tax Increment Reinvestment Zone (TIRZ) which would allow the use of property tax increment funds to finance improvements and encourage private development or redevelopment for variety of uses (industrial, commercial or residential) • Utility Rate Discounts — discounting rates on public utilities, such as water and wastewater • City Assistance — assisting with zoning /code regulations, waiving certain fees, expediting permits and licenses • Technical Assistance /Financing Option Referrals - advising on resources for business development • Workforce Recruitment and Development Assistance — assisting with employee recruitment and job training through partnerships with local workforce development service providers Goal E: Review economic development impact analysis model AE recommended in its 1996 Strategic Economic Plan that the city develop a cost - benefit model to assess the fiscal impacts of its economic development efforts. Impacts to be measured include items such as capital investments, job creation, wage rates, income levels, and sales and property tax valuations. This model should be reviewed and, if necessary, updated to establish the effectiveness of the city's economic development efforts. AngelouEconomics 128 Recommendation 11: Marketing Round Rock Responsible Entity Timeline Funding Goal/Task Primary Secondary Start End Needed Goal A: Conduct intemal marketing campaign Task 1: Agree on message/theme of campaign Task 2: Hire professional firm to create logo and design new collateralslwebsites Task 3: Upgrade economic development marketing web site (Chamber) Task 4: Identify & engage local industry leaders in efforts Task 5: Establish standard protocol for handling leads & prospects Task 6: Agree on goals /metrics for extemal campaign COC /City 10/01 Ongoing Goal B: Conduct external marketing campaign Task 1: Implement plan based on recommended distribution channels - Maintain comprehensive economic development website - Increase media publicity - Participate in events of target industries -Join target industry associations - Schedule trade missions to recruit companies & talent - Distribute collateral materials with consistent message/logo Task 2: Increase involvement in regional marketing efforts COC /City 3/02 Ongoing TOTAL: $205 V -210K Recommendations & Implementation Guidelines Recommendation II: Marketing Round Rock As Round Rock seeks to promote itself to its target industries as an exceptional business location, the city must engage in a comprehensive and strategic marketing campaign. For this campaign to be considered successful, it must accomplish the following: 1) unite the community behind a single marketing message; 2) establish the image of Round Rock as a premier location for high growth industries; 3) create an awareness of Round Rock as part of a considered set of options when companies make site selection decisions, and ;; 4) result in a more high impact, diversified mix of companies locating in Round Rock. This campaign, as outlined in the Marketing Strategic Plan beginning on page 89 of this report, is comprised of internal and external marketing efforts. All aspects of this campaign will require close coordination among the City of Round Rock, the Round Rock Chamber of Commerce, the local business community, and all other area organizations involved in the promotion of the city. A prospective budget for these activities is detailed on page 118. AngelouEconomics 129 Goal A: Conduct internal marketing campaign Before initiating a marketing campaign to the outside world, the city itself must first be organized. Without strong intemal support behind the marketing message and its promises, the campaign is unlikely to be successful. In most cases, Round Rock will have only one chance to make a good impression with a target business. Marketing too soon, before the community is prepared and internal issues resolved, can send mixed messages about the city and create long -term image problems. It is recommended that the following action items be accomplished before launching an external marketing campaign. (Please refer to the Marketing Strategic Plan, pages 110 - 112, fora detailed description of these tasks.) Task 1: Agree on message /theme of campaign (i.e., "success" theme) Task 2: Hire professional firm to create logo and design new collaterals /websites Task 3: Upgrade economic development marketing website (Round Rock Chamber of Commerce) Task 4: Identify & engage local industry leaders in marketing campaign Task 5: Establish standard protocol for handling leads & prospects Task 6: Agree on goals /metrics of extemal campaign (as outlined on pages 97 - 100) Goal B: Conduct Extemal Marketing Campaign Recommendations & Implementation Guidelines Once the intemal marketing campaign is complete, Round Rock will be prepared to launch an external campaign to attract its target industries. Because Round Rock will be competing against major cities throughout the United States and abroad, reaching these target industries will require a more sophisticated approach than traditional methods. AE recommends marketing techniques that put the city in direct personal contact with prospects and creates a strong Internet presence for the city through its websites. All marketing efforts should promote a unified image of the city that establishes a solid international "brand identity" for Round Rock. Because the Austin area already has an established reputation as a technology center and growing business location, Round Rock would also benefit from participating in regional marketing efforts as well. (Please refer to the Marketing Strategic Plan, pages 113 - 117, for a detailed description of these tasks.) AngelouEconomics 130 Task 2: Participate in regional marketing efforts Recommendations & Implementation Guidelines Task 1: Outline plan based on distribution channels discussed in report • Maintain a comprehensive economic development website (upgraded Round Rock Chamber of Commerce site) • Increase publicity • Develop a plan for participating in industry events of targets • Join target industry associations • Schedule trade missions to specified regions or universities • Distribute collateral materials with consistent message /logo AngelouEconomics 131 Recommendation III: Infrastructure Issues Responsible Entity Timeline Funding Goal/Task Primary Secondary Start End Needed Goal A: Continue efforts to attract local higher education facility City /COC Ongoing Goal B: Establish committee to monitor real estate development Task 1: Assess existing land uses and plan for future development Task 2: Develop plan to address office space needs Task 3: Assess potential for Downtown expansion Task 4: Coordinate beautification /landscaping programs for major commercial corridors City 4/02 4/03 Goal C: Monitor impact of economic growth on traffic/utilities /ISD City COC 3/02 Ongoing Recommendation 111: Infrastructure Issues Recommendations & Implementation Guidelines Several critical infrastructure issues that were identified in AE's 1996 Strategic Economic Plan as impacting Round Rock's economic growth remain important considerations today. Concerns over the lack of higher education opportunities, future real estate development, and the impact of rapid growth on the city's resources were reiterated throughout the course of this project. The following goals and tasks seek to provide a continuing format to guide the city in addressing these issues. Goal A: Continue efforts to attract a local higher education facility The lack of a four -year higher education campus in Round Rock is one of the city's most significant economic weaknesses. Despite access to institutions in surrounding communities, such as Austin, Georgetown, and San Marcos, a local campus would provide important opportunities to service the specific workforce development and training needs of Round Rock's residents and employers. In addition to attracting students from across the country, graduates of Round Rock's own excellent school system would be able to remain in the city to pursue their degrees. An academic facility would also improve opportunities for advanced research and development activities within the city. The MITC (Multi- Institution Teaching Center) effort which was created as a result of the previous study has achieved important strides over the past few years. This initiative has sought to attract a consortium of local institutions to share AngelouEconomics 132 Recommendations & Implementation Guidelines space and facilities at a designated Round Rock campus. These efforts should be continued as well as other prospects pursued for attracting a "single user" campus. For whatever institution is ultimately recruited, the prospect of establishing a new higher education facility in a city such as Round Rock, known for its technology companies and highly skilled workforce, presents exciting opportunities to create a "campus of the future." In offering a fully wired (or wireless) campus, online classes broadcast from other schools, "bookless" courses (all course materials online or on computer rather than books), and a range of other cutting -edge options, this site could become a model for higher education throughout the country. It could also serve as a distance learning center for the rest of Williamson County and beyond. Public- private partnerships with area technology companies, particularly in telecommunications, software and computer equipment, should be explored as these efforts progress. Goal B: Establish committee to monitor real estate development throughout the city As Round Rock seeks to attract new businesses, concems were voiced throughout this project regarding where these companies might locate. The decision to locate in a particular city often depends on the availability and cost of appropriate space, whether it is a corporate campus or manufacturing facility requiring a large land parcel or a small user needing a leased -office -or- storefront — Before- target - industries- are - recruited —the- city - must- have_appropriate_ available to offer. AE recommends that a committee or task force be established to assess the city's existing land uses and plan for future commercial real estate needs. This Committee would work closely with city officials and the Chamber of Commerce in assisting relocating or expanding companies with their site selection needs. Task 1: Assess existing land uses and plan for future commercial development Planning the commercial, industrial and residential development of a community is critical to managing its growth. Various departments within the City of Round Rock, such as Planning and Zoning and Public Works, have long been tracking this progress. The Committee should therefore first assess where within the city commercial and industrial development is most likely to occur given known plans and remaining vacant land. Based on this assessment, the Committee should work with officials from other city departments, chamber staff, property owners, existing business AngelouEconomics 133 Recommendations & Implementation Guidelines owners, real estate developers, and impacted residential neighborhoods to create plans for the commercial development of these areas. Two regions in particular offer important opportunities for strategic development to occur. The northeast quadrant of the city represents much of Round Rock's remaining vacant land. Fortunately, many large parcels within this area are owned by single property owners, which should facilitate the and use planning and potential future acquisition of sites. Opportunities for commercial developments along the corridors of planned State Highways 45 and 130 should also be explored and a plan created. Task 2: Develop plan to address office space needs As Round Rock seeks to recruit more business and professional service firms, the demand for Class A and Class B office space will increase. New office park developments at La Frontera will likely meet some of this need. However, firms desiring to locate elsewhere in the city may have difficulty finding suitable space. As this Committee assesses and plans for commercial development around Round Rock, special consideration should be given to the city' s needs for office space of various square footage, lease terms, and price. Task 3: Assess potential for downtown expansion One of Round Rock's unique community assets is its Downtown Main Street. Like many communities, the Downtown not only provides a link to the city's past, but also provides a "sense of place" and shared identity for residents. The area currently features several blocks of historic buildings and a mix of retail, businesses and public sector uses, including the main branch of the public library, the chamber of commerce, and the existing City Hall. As the City relocates to new facilities and the Committee assesses sites for commercial development, opportunities for expanding Round Rock's downtown should be explored. To create more of a "town center," downtown locations would be ideal for an improved mix of retail, restaurants, entertainment venues, business /professional service offices, AngelouEconomics 134 Recommendations & Implementation Guidelines and residential. Options may include expanding the district towards 1 -35 and the new City Hall to maximize exposure. The Committee should work with the Downtown Merchants Association in assessing this potential. Task 4: Coordinate landscaping /beautification programs for the city's commercial corridors As the Committee assesses land uses and commercial development in Round Rock, the attractiveness of the city's commercial corridors should be considered. These districts are often the only impression non - residents will have of the city of Round Rock and their appearance will create either a negative or positive image. The Committee may recommend that the city's primary commercial corridors be targeted for landscaping or beautification funding. Goal C: Create Infrastructure Task Force to monitor impact of economic growth on traffic /utilities /ISD, etc. The rapid population growth experienced by Round Rock over the past decade has raised serious concems over traffic congestion, strained utility resources, and overcrowding of schools. Such issues not only directly impact Round Rock's capacity for additional economic growth, but also how community residents perceive their quality of life. An awareness of the impact of economic development efforts upon the city's infrastructure is critical for the health of the community. A Task Force comprised of city and chamber staff should be created to monitor commercial growth and its effect on infrastructure and resources. AngelouEconomics 135 Recommendation IV: Regional Strategy Responsible Entity Timeline Funding Goal/Task Primary Secondary Start End Needed Goal A: Strengthen city's leadership within Williamson County Task 1: Create/expand partnership with Georgetown to promote 1 -35 corridor development & address other regional issues Task 2: Create/expand partnership with Cedar Park to promote east/west linkages across county & address other regional issues City COC 11/01 Ongoing Goal B: Strengthen city's position within Austin Metro Area Task 1: Increase participation in regional efforts to address challenges City COC 2/02 Ongoing Task 2: Join efforts to pursue regional opportunities AngelouEconomics Recommendations & Implementation Guidelines Recommendation IV: Regional Strategy Over the past decade, Round Rock transformed from a small suburban bedroom community to a significant business location and economic player in Central Texas. As the largest city in Williamson County and part of the booming technopolis of the Austin area, Round Rock should take advantage of this strategic location to solidify its leadership role in the region. First, the city must strengthen its partnerships with other key communities within Williamson County to pursue common development goals. Next, Round Rock needs to increase its role in regional efforts to address the challenges and opportunities impacting all of the greater Austin metro area. Goal A: Strengthen city's leadership within Williamson County As one of the fastest growing counties in the nation, Williamson County is projected to reach a population of almost one million over the next three decades. Round Rock is currently the largest community within the county and will likely continue to remain so throughout this period. Round Rock is also poised to lead the county in business and economic growth as well. City leaders should seek to strengthen partnerships with other key communities within Williamson County to address county -wide concems and pursue common interests. For example, attracting more businesses and creating more employment opportunities in Williamson County will help promote regional "reverse commuting." 136 ■ Recommendations & Implementation Guidelines Task 1: Expand partnership with Georgetown to promote 1 -35 corridor development Georgetown, the county seat for Williamson County, is located directly north of Round Rock along 1 -35. Much of the land along the interstate corridor bordering these two communities is undeveloped. Given the ever - increasing traffic flow along this important interstate, the cities should consider opportunities for jointly promoting the development of this corridor as a strategic business location. This expanded partnership between the two cities will also allow city officials to work closely in addressing other regional concerns. Task 2: Expand partnerships with Cedar Park and Leander to promote east/west linkages across county The upcoming completion of State Highway 45 will improve connections between Round Rock and Cedar Park, which is located directly west of Round Rock and north of Austin along SH183. Cedar Park is not only one of the fastest growing communities in the area, but is also quickly becoming a significant employment center as well. Round Rock should seek to expand its working relationship with Cedar Park as well as Leander to promote east/west linkages across Williamson County and to pursue joint development opportunities. Goal B: Strengthen Round Rock's position within the greater Austin metro area Round Rock's rapid growth and success as a business center is undoubtedly due to its proximity within the Austin metro area. Along with the benefits of this location have come many adverse consequences as well, such as traffic congestion and other "big city" problems. By asserting itself more in regional planning efforts, Round Rock will be better positioned to address regional problems as well as take advantage of opportunities which directly impact the city's own course of development. Increasing its role in these efforts will also more firmly establish Round Rock as a major player in the metro area. Task 1: Increase participation in regional efforts to address metro problems Many challenges facing Round Rock actually stem from regional problems. For example, much of the traffic congestion through the city is a result of almost 60 percent of Williamson County residents commuting to Austin for employment. The high levels of air pollution caused by all this traffic have placed the entire area under threat of "non- AngelouEconomics 137 Recommendations & Implementation Guidelines attainment" for air quality standards which could result in the withholding of federal transportation dollars for the entire region. Other problems potentially impacting area economic growth include rising unemployment, inadequate workforce development, and a shortage of affordable housing. City officials should increase their participation in regional planning efforts such as through the Capital Area Planning Council, the Corridor Council, joint efforts between Williamson and Travis Counties, and other organizations addressing these issues. Task 2: Join efforts to pursue regional opportunities Efforts to address area problems have already resulted in many initiatives for pursuing regional opportunities in which Round Rock should actively get involved. The ambitious drive to recruit bio -tech companies to the Austin -San Antonio corridor is one example. While Round Rock does not have the economic assets to pursue bio -tech on its own, the city may attract companies choosing to locate in the Austin area because of this initiative. Trade missions to Califomia sponsored by the Greater Austin Chamber of Commerce and other area groups are another example. Such efforts expose Round Rock to greater prospects than the city could likely pursue on its own. Round Rock officials should identify and aggressively participate in regional opportunities which promote the city's economic development goals. Eromoting_r_egionaL reverse_commutinq" is one area that would serve the interests of the cities of Round Rock and Austin. By creating more employment opportunities in Round Rock and Williamson County, Round Rock would benefit by retaining more of its workforce locally and reducing residents' commute times. Regional Austin benefits include less traffic congestion, less stress on transportation infrastructure, and reduced air pollution. A collaborative effort by the two communities to support this concept by partnering on business development and recruiting efforts could lead to mutual gains. To have a greater chance of success, reverse commuting needs to be planned and promoted at this regional level. AngelouEconomics 138 Recommendation V: Economic Development Organizational Issues Responsible Entity Timeline Funding Goal/Task Primary Secondary Start End Needed Goal A: Begin implementation of the Strategic Plan Task 1: Assign tasks among Chamber & City E.D. staff Task 2: Generate buzz/community support for the Strategic Plan City/COC 10/01 1/02 Goal B: Increase resources for economic development efforts Task 1: Request/obtain increased funding for E.D. efforts Task 2: Hire firm for-Chamber City/COC City/COC COC_ 1/02 1/04 $350K -2002 $500K -2003 - professional- -to -raise -funds Task 3: Increase staffing of E.D. efforts COC Recommendation V: Economic Development Organizational Issues Recommendations 1 through IV outline specific goals and tasks necessary for pursuing increased economic growth in Round Rock. The successful implementation of this plan is therefore largely dependent on the organizational capacity and funding of Round Rock's main economic development organization —the Round Rock Chamber of Commerce. While certain City officials and staff are critical to these efforts, the Chamber is commissioned with primary responsibility for business development and marketing the community. The following recommendation seeks to address the organizational issues of implementing this plan and increasing the city's economic development resources. Goal A: Begin implementation of the Strategic Plan While many of the goals outlined in this Strategic Plan require long -term strategies, the implementation of these efforts should begin immediately following the plan's acceptance by the Advisory Commission and the Round Rock City Council. Two major issues which must first be resolved before implementation can begin include assigning responsibility for tasks and presenting the plan to the public. AngelouEconomics Recommendations & Implementation Guidelines 139 Recommendations & Implementation Guidelines Task 1: Assign tasks among Chamber and City economic development staff The creation of this plan resulted from a close collaboration between the City of Round Rock and the Round Rock Chamber of Commerce, with assistance from other members of the community serving on the project Advisory Commission. While each Recommendation suggests which entity —the City or Chamber — should have primary responsibility for each goal, the actual "division of labor" among these partners as well as other community organizations needs to be fully fleshed out. Likewise, the assigning of tasks to the appropriate staff member, committee, task force, or department within each organization also needs to be determined. City and Chamber staff should continue their close working relationship in agreeing to task assignments as well as time frames. In doing so, expectations and responsibilities for implementing this plan, as well as accountability, will be clearly defined. Task 2: Generate community "buzz" and support for the Strategic Plan Although community input was encouraged throughout the development of this plan, the lack of actual participation and general sense of apathy among Round Rock residents and business owners was a cause for concern for the Advisory Commission. All members of the Round Rock community should be aware of the goals of this Strategic Plan and how it may impact growth in the city. For this reason, part of implementing the plan will be to generate "buzz" and support within the community through media covers a and "roll -out" events. • AE recommends that the City and Chamber hold at least two events to "roll -out" the Strategic Plan. The first should be held within the weeks following acceptance of the Plan by the Round Rock City Council (and after the assigning of tasks has been complete.) At this time, the City and Chamber should educate Round Rock's private, public, and media sectors about the target industries. A high profile private sector executive should act as the keynote speaker, encouraging the audience to support the new economic development initiative. Involving target industry constituents in planning or sponsoring the event will help create buy -in prior to the event. Intemal marketing activities as outlined in the Plan should also be launched during this event by letting the public know that a major marketing campaign is being developed and will be unveiled soon. Pending organization changes at the Chamber of Commerce could be announced at this time as well. AngelouEconomics 140 Recommendations & Implementation Guidelines • A second public event should be held to present the marketing campaign and "new" Chamber of Commerce — when they are ready. This major community event should coincide with the launching of the newly designed websites and other collaterals promoting the new image of Round Rock and should be bigger in scope than the previous event. The Chamber's new executive director /president should be introduced at this time and members of the Major Employer's Task Force should be on hand to announce their support. Goal B: Increase resources for economic development efforts Task 1: Request/obtain increased funding for the Chamber of Commerce and the city's economic development efforts Although the city of Round Rock receives almost $7 million annually in 4B sales tax revenues, most of these funds are used for transportation infrastructure and to subsidize local property taxes. The Round Rock Chamber of Commerce has received approximately $150,000 a year to conduct its economic development efforts. As the city seeks to position itself strategically to compete with other communities for business development, this funding will be inadequate. To reach the level of other communities of its size and prestige, AE recommends that the Chamber increase its budget to approximately $350,000 over the next year and to $500,000 within two years. Task 2: Hire a professional firm to conduct fundraising for the Chamber of Commerce While the Chamber may request and expect that some of this increased funding come from the City, much of these funds must come from the Chamber's own fundraising efforts. Increasing the financial self - sufficiency of the Chamber will help shield its programs and services from political circumstances. . AE recommends that a professional fundraising firm be retained to assist the Chamber in launching a new membership campaign and fundraising effort to identify more long -term, sustainable funding sources. This effort would augment the current work of the Chamber's Momentum Group which has sought to raise $100,000 annually by recruiting 100 companies at $1,000 each. AngelouEconomics 141 Recommendations & Implementation Guidelines Task 3: Increase staffing of economic development efforts In addition to marketing the city, a primary goal of increased Chamber funding should be to increase staffing of economic development efforts and business development programs. In addition to a Chamber President, other positions which may need to be filled include: Business Development and Marketing Director, Program Director for Expansion and Retention; Communications /Community Relations Director, and; Office Manager. Some of these positions may coincide with existing titles within the Chamber and others may need to be created. Because increased staffing will directly depend on available funding, some of these positions may not be filled until the budget allows. AngelouEconomics 142 Appendices Appendix A: Public Input Public Input Overview From the start of this project and throughout its duration, AngelouEconomics (AE) solicited the input of Round Rock's city officials, business leaders and residents to assist in developing this Target Industry and Marketing Strategic Plan. AE recognized such input would be critical to creating a plan with broad support and the greatest chances for successful implementation. A project Advisory Commission comprised of representatives from throughout the community was formed to review and provide feedback for every aspect of this Plan. In addition, AE conducted personal interviews and focus groups with key stakeholders. An online survey was also utilized to assess public opinion on a variety of issues related to the economic growth of the city. This input was directly reflected in the selection of target industries, the themes of the marketing strategy, and the goals and tasks of the recommendations. Following is a partial list of focus groups and meetings conducted to solicit input regarding this plan. In total, nearly 175 individuals were invited to participate in these meetings. • Advisory Commission (6 meetings) • City Council and other City officials (one -on -one interviews and focus group workshop) • Round Rock Chamber of Commerce and 4B Economic Development Board Members • City public sector officials • Business and industry leaders • Community residents and civic leaders • Marketing, public relations, and other city promotional representatives Input received from many of the exercises conducted during these interviews and focus groups have been consolidated in a SWOT ( Strengths - Weaknesses - Opportunities- Threats) Analysis. Input received from the online survey are also presented in this appendix. Information regarding the project and draft reports were accessible throughout the process at the project website (www. AngelouEconomics .com /RoundRock). AngelouEconomics 143 SWOT Analysis Strengths Economic Infrastructure • Business - friendly climate • Strong recent economic growth • High tech employment base • Growing retail sector • Skilled, educated, and connected workforce • Excellent utility infrastructure (electricity, water, wastewater) • New commercial, retail, hotel, and residential real estate opportunities at La Frontera Strategic Location • Close proximity to Austin and its many assets • Increasingly important 1 -35 Corridor • Williamson County, the 13 fastest growing county in the U.S. Quality of Life /Community Amenities • Excellent schools • High value quality housing stock • Attractive Historic Downtown • Good health care system • Excellent park system Community Capacity for Economic Development/Community Organizations • Strong civic & business leadership • Good working relationship with county /regional organizations Appendix A: Public Input • Positive community attitude /spirit • Family- oriented activities (Round Rock Express) • Low crime rate • Pleasant year -round climate • Strong church community AngelouEconomics 144 Weaknesses Lack of Economic Diversification • City too dependent on a few major employers, especially Dell • Economy vulnerable to downtums in certain industries • Residents commute to other employment centers (Austin) • Limited sales tax revenue generators Rapid Growth Straining Infrastructure • Traffic congestion • Sprawl • Increasingly crowded schools • Competition for labor • Limited readily available sites /facilities for new businesses • Limited affordable housing Lack of Local Higher Education • Limits local workforce development opportunities • Lack of research & development capacity associated with higher education facilities • Residents must leave city for higher education Limited Funding for Economic Development/Infrastructure Lack of Updated Economic Development Plan /Strategy Appendix A: Public Input AngelouEconomics 145 Opportunities Attract New Industries /Businesses • Focus on innovative, high growth, "clean" industries • Allow Round Rock residents to work within Round Rock/Williamson County • Encourage "reverse commuting" to Round Rock from other communities Lead Effort for Regional Cooperation on Regional Issues • Transportation • Workforce development • Affordable housing • Wage rates • Clean air and water Bring Higher Education to Round Rock • Continue MITC efforts • Attract other facility Establish Coordinated Marketing Campaign • Promote city to target businesses, new and existing residents, shoppers, and tourists Appendix A: Public Input Develop Community Partnerships • Engage community leaders in economic development efforts • Address city-wide issues (workforce development, real estate development, affordable housing, tourism) AngelouEconomics 146 Threats Continued Lack of Economic Diversification • Leaves local economy vulnerable to downturns on particular industry sectors • Limited opportunities for labor force restricts job opportunities Major Recession Hits Area • Increased unemployment • Businesses experience difficulties or failure • Decline in retail spending leads to significantly reduced sales tax rebates Competition from Regional Neighbors • Round Rock loses on attracting businesses, employees, residents, and consumers Infrastructure Improvements Can't Keep Up With Growth • Continued /increased traffic congestion • Other infrastructure strained, including schools and utilities Continued Lack of Vision for Economic Growth • No community focus /consensus on how to grow • No cooperation within community Austin Non - Attainment on Air Quality affects Regional Federal Transportation Funding Appendix A: Public Input AngelouEconomics 147 Online Public Survey Results 1, Are you a resident of Round Rock? 92% Yes AngelouEconomics 3% 5% No Not Answered Very Important Important 17% Somewhat Important 18% Not Very Important Not Important 13% Not Ansvered 6% 42% 36% Appendix A: Public Input 2. If yes to Question 1, how long have you lived in Round Rock? Less than 1 -5 years 6 -10 11 -15 16 -20 More than Not 1 year years years years 20 years Answered 3. How important were /are the following in your decision to locate /remain in Round Rock: Employment Opportunities: City Location in Central Texas /Near Austin Very Important Important Somewhat Important Not Very Important Not Important Not Answered 4% 8% 6% 16% 28% 38% 148 3. How important were /are the following in your decision to locate /remain in Round Rock: (continued) Size of the City Very Important Important Sonevhatlmportant Not Very Important Notlmportant 5% Not Answered ■ 5% Housing Costs Very Important Important Some Mat Important NotVery lmportant 1111 3% Notlmportant IIII 3% Not Answered . 6% 23% Very Important 29% Important 24% Sorrevehatlmportant 14% Not Very Important Not Important Not Ansvered 14% 32% Quality of Life Quality of School District 42% Very Important Important Sonevhat Important Not Very Important Not Important Not Answered Appendix A: Public Input 65% 46% AngelouEconomics 149 3. How important were/are the following in your decision to locate /remain in Round Rock: (continued) Tax Rates Image of Round Rock as a City Vey Important Important SorrevhatImportant Not Very Important 5% Notlmportant 3% . Not Answered 5% 4. Do you work in Round Rock? 23% AngelouEconomics 60% 7% 6% 5% Yes No Not Retied Not Employed Answered 39% Very Important . 27% Important 21% S omevhat Important NotVery lmportant 3% Notlmportant = 10 %u Not Answered - 6% Appendix A: Public Input 5. If you don't work in Round Rock, do you commute elsewhere to work? 54% 24% 22% 36% Austin Cedar Park Other* Not Answered * Other included: Rockdale, Bee Cave, Williamson County, Travis County, Yemen 150 6. Do you own a business in Round Rock? 86% Yes 8. How many live in your household? 14% 37% No Not Answered 1 2 3 4 5 or More Not Answered 7. In what industry do you work? Education 3% Goverrmelt 14% Services 13% HRE* 9 % Wholesale'RdailTrade 6% TCPU ** i 1% Non Tech Mantfadrrirg 1 2% High Tech Mantfadtr irg Constriction No t Aiswer Ed Appendix A: Public Input 20% 31% • Finance/Insurance /Real Estate • Transportation /Communications /Public Utilities 9. What is your income level? 20% 23% 27% 23% 20% <$18,000 $18K- $41K- $71K- >100K Not $40 $70K $100K Answered AngelouEconomics 151. 10. How would you rank the following in importance for Round Rock's economic development efforts: Diversifying the current mix of companies /industries Providing assistance to Round Rock's existing companies & industries 25% Very Important - 9 % 41% Important 31% 22% S ome what Important 37% Very Important Important Sonevhat Important Not Very Important Not Important Not Answered Very Important Important Sonevhat Important Not Very Important Not Important Not Answered 3 3% 3% 6% Attracting high wage jobs, even if it means less jobs are created = 9% 6% 6% 15% 27% 38% NotVery lmportant .r.r.I 8% Notlmportant 11% Not Answered 6% Very Important Important Sone%hat Important Not VeryImportant - Not Important Not Answered Appendix A: Public Input Attracting many jobs, even if they are primarily low -wage paying 1 2% 7% 6% 4 4% AngelouEconomics 152 10. How would you rank the following in importance for Round Rock's economic development efforts: (continued) Recruiting Technology companies (i.e. computers, semiconductors, Recruiting Professional Services companies (i.e., legal, architectural, electronics, software, telecommunications) engineering, consulting) Very Important Important SonEvhatImportant NotVery lmportant M 5% Notlmportant = 9% Not Ansvered 6% 23% Very Important . 24% Important 34% Somewhat Important NotVery lmportant M 4% Notlmportant = 7% Not Ansvered 7% Recruiting Business Services companies (Le, accounting, Recruiting Financial Services companies (i.e., banks, brokers, insurance companies) advertising, printing, staffing) Very Important Important S orrevhat Important NotVery lmportant 4% Notlmportant I 7% Not Ansvered 1 19% 29% Very Important 35% Important Somevhat Important Not Very Important M 5% Notlmportant = 7% Not Ansvered 6% Appendix A: Public Input 2 0% 25% 33% 25% 31% 32% AngelouEconomics 153 10. How would you rank the following in importance for Round Rock's economic development efforts: (continued) Recruiting Non -High Tech Manufacturing companies Verylmportant Important S onevhat Important Not Very lmportant Not Important Not AnsNered Recruiting Retail businesses Very Important 24% Important � 23% S onevhat Important Not Very Important = 6% Not Important = 9% Not AnsNered 7% Recruiting Health Care Services companies Appendix A: Public Input Very Important 2 6% Important 28% 39% Someuhat Important _ 33% Not Very Important 3 3% Not Important "M 5% Not AnsNered 6% Recruiting Restaurants Very lmportant JIM= 20% Important 24% 32% SonevhatImportant Not Very Important = 7% Not Important ' 10% Not AnsNered 6% 34% AngelouEconomics 154 10. How would you rank the following in importance for Round 11. How would you Rock's economic development efforts: (continued) improving Roun Recruiting Entertainment businesses Larger /expanded Very Important Important S orrevhat Important Not Very lmportant Not Important Not Answered Very Important Important Sonevhatlmportant Not Very lmportant Not Important Not Answered =I 5% 4% 6% Workforce development /skilled labor force 23% 29% 34% 37% Verylmportant Important S ornevhat I mportant Not Very lmportant Not Important Not Answered Appendix A: Public Input rank the following in importance to d Rock's economic growth: Downtown Round Rock 8% 14% 77 15% 7% Local campus of a four -year college /university Very Important Important SomevhatImportant Not Verylmportant Not Important Not Answered = 12% 11% 6% 28% 24% 20% 28% 28 % AngelouEconomics 155 11. How would you rank the following in importance to improving Round Rock's economic growth: (continued) Utilities (water, electricity, etc.) and telecommunications infrastructure Increased transportation funding /infrastructure Very Important Important Sorevhatlmportant NotVery lmportant 1% Not Important 1% Not Ansvered S 6% Very Important Important Somevhat Important Not Very Important Not Important Not Ansnered - 6% AngelouEconomics Participation in Capital Metro Tourism 44% Very lmportant 32% Important 17% S ome+nhat Important Not Very lmportant Not Important Not Ans Bred 32% Very Important Important Sorrevhat Important Not Very Important Not Important Not Anhvered Appendix A: Public Input 15% 21% 41% 156 54% 11. How would you rank the following in importance to improving Round Rock's economic growth: (continued) Convention center Very Important Important S =what Important Not Very Important Not Important Not Ansvrered - 6% Very Important Important Somewhat Important Not Very Important M 3% Not Important 1% Not Ansaered 6% AngelouEconomics 12% 12% 17% 15% 20% 27% 30% 52% Affordable housing Very Important Important S ontvhat Important NotVery lmportant =11 5% Notlmportant = 8 % Not Ansvered 6% Very Important Important SommnhatImportant Not Vey Important Not Important Not Answered I. Appendix A: Public Input Strong civic leadership (i.e., City Council, City Departments, Strategic plan for economic development Chamber of Commerce) 19% 28% 35% 157 57% 11. How would you rank the following in importance to improving 12. How would you rank the following as potential threats Round Rock's economic growth: (continued) to Round Rock's economic growth: Funding for economic development /marketing efforts National economic recession Very Important 42% Very lmportant 29 % Important 26% Important . 28% Somewhat Important 14% Somevhatlmportant -_ 33% Not Very Important M 5% NotVery lmportant 3 3% Not Important 6% Notlmportant 7 2% Not Answered 7% Not Answered 6% Inadequately trained labor force Very Important Important Somewhat Important Not Very Important Not Important 3% Not Answered 6% M 5% 19% Urban sprawl Very Important 35% Important 33% Somevhatlmportant NotVerylmportant = 7% Not Important 5% Not Answered 7% Appendix A: Public Input 30% 35% AngelouEconomics 158 12. How would you rank the following as potential threats to Round Rock's economic growth: (continued) Traffic congestion Very Important Important Sont hatImportant Not Very Important Not Important Not Answered 0% 0% Decrease in quality of life Very Important Important Somewhat Important Not Very Important 1 1% Not Important 1 1% Not Angered . 6% 13% 19% 60% Overcrowded schools 66% Very lmportant 20% Important 7% S orreNhat Important Not Very lmportant Not Important 7% Not Answered Verylmportant Important Sonexhat Important Not Verylmportant Not Important Not Ansvered Appendix A: Public Input Loss of Round Rock's unique community identity AngelouEconomics 159 4 6% 12. How would you rank the following as potential threats to Round Rock's economic growth: (continued) Competition from other regional communities Very lmportant pi= 17% Important 26% Sorrel/that Important EIIIIIIMIMIIIII Not Very lmportant .= 8% Notlmportant = 9% 14. Do you think the U.S. economy will be better than last year? 55% 1 8% Yes AngelouEconomics Not Ansvered 6% 21% 6% No Same Not Answered 13. How would you rank the important of Dell Computer Company to the Round Rock economy? Very Important Important SomeWhatlmportant j 1111111.1111 16% 35% Not Very Important ] 3% Notlmportant M 4% Not Answered 6% Appendix A: Public Input 15. Do you think Round Rock's economy will be better than last year? 38% 28% 28% Yes 27% 6% No Same Not Answered 160 44% 16. Will your household be better off this year than last year? 38% 3 8% Yes 30% 27% No Same Not Mswered High Tedi Conservth e H isto rival Individud/unigre Innov •nee E rergelic Small town Amosphae Siburbia Family- oriented Pro gr6sive Not Answered 18. What phrase best describes your image of Round Rock? 41 % 17. Which words /phrases best describes Round Rock? 13% 8% P ro g re ssive, growing city with unique identity independent of Austin Suburban Quaint, historic, Not Answered com m unity fam ily- oriented serving Austin town in Central Texas Appendix A: Public Input 23% AngelouEconomics 161 19. Economic growth in Round Rock is important to all of the city's residents. Would you be willing to participate in these efforts? 55% Yes 38% No Not Answered Appendix A: Public Input 20. If you answered yes to Question 19, with what issue would you be willing to get involved? Tramportation Issues DowtoanRouidRock 13% Busiress deeelopmeit 8% Attracting a 4yearcampus 8% Trade passions to otter cities 3% Marketing Round Rock 6% Not Aisne e3 42% This survey was available online for approximately six weeks and was accessible through the City of Round Rock, Round Rock Chamber of Commerce, Round Rock Leader, and project websites. AngelouEconomics 162 Regional, National and International Industry Associations Technology American Electronics Association (AEA) Organization Description: Founded in California in 1943 by 25 electronics manufacturers, AEA is now the largest trade association serving the electronics, software, and information technology industries. AEA maintains a Washington, D.C. office, one of its 19 offices in the United States, and offices in Brussels, Tokyo, and Beijing. AEA supports the American Electronic Association ElectroPAC. Members: Annual Budget: Contact Person: Address: 3500 companies $15,000,000+ Staff: 110 William Archey, PresidenUCEO P.O. Box 54990 Phone:800 -284 -4232 Santa Clara, CA 95056 -09990 Fax. 408-970-8565 Web Site www.aeanetorg Email csc@aeanet org AEA Texas Council — Austin Contact Person: Johnny Anderson Phone: 512 - 474 -4403 Email Johnny_Anderson @aeanet.org Regional Conference Meeting' AEA State Policy Action Network Attendees: Companies who wish to strategize on key policy issues impacting high -tech companies When held: July 26 -27, 2001 Recommendation. AEA and its member regional councils sponsor meetings throughout the year. Non - industry sponsorship opportunities are typically not available. The local regional council representatives should be contacted to inquire about meetings in the Austin area. Association for Computing Machinery Organization Description: ACM is an international scientific and educational organization dedicated to advancing the arts, sciences, and applications of information technology. With a world -wide membership of 80,000, ACM functions as a locus for computing professionals and students working in the various fields of Information Technology. ACM is the umbrella organization for Special Interest Groups (SIGs) in 36 distinct areas of IT. Each SIG organizes itself around those Appendix B: Target Industry Associations specific activities that best serve both its practitioner and research -based constituencies. ACM and its SIGs sponsor between S0 and 100 conferences each year. Members: 80,000 individuals Annual Budget: $25 - $50,000,000 Staff: 94 Contact Person* Ann Marie Ferrara, Meetings Director Address: 1515 Broadway Phone: 212-626-0611 New York, NY 10036 Fax: 212- 302 -5826 Web Site: www.acm.orglsigcomm Ematl ann.ferrara @acm.org ACM Texas Chapter— Austin Contact Person: Harold Friz Phone: 512-685-3623 Emait chi- austin @acm.org Recommendation: Given the large number of conferences sponsored by ACM and its SIGs, send marketing materials to Meetings Director for ACM to recruit conferences to Austin area as well as to request information on available sponsorship opportunities. Association of Information Technology Professionals (AITP) Organization Description. AITP's mission is to provide superior leadership and education in Information Technology. AITP is dedicated to using the synergy of Information Technology partnerships to provide education and benefits to its members and to working with the industry to assist in the overall promotion and direction of Information Technology. Members are managers of data processing installations, supervising systems and methods analysts, and programmers and include 220 U.S. and 7 Canadian chapters. AITP is a member of the Institute for the Certification of Computer Professions. Members: 7000 individuals, 5000 students Annual Budget: $1 — 2 million Staff.• 8 Contact Person: Maggie Matos Address: 315 S. Northwest Highway Phone: 800- 224 -9371 Park Ridge, IL 60068 Fax: 847 -825 -1693 Web Site: www.aitp.org AngelouEconomics 163 Email: Maggie_Matos @aitp.org Annual Conference Meeting: 2001 National Conference When held: October 18 -20, 2001 2001 Schedule: Baltimore, MD Other Conferences Include Computer Security In The Internet Age, Austin, TX, October 9, 2001 ITEC Expo, Austin, TX, October 24, 2001 Recommendation AITP sponsors an annual conference each fall as well as regional conferences throughout the year. Send marketing materials to above contact Austin Software Council (ASC) Organizational Description: The Austin Software Council (ASC) is a non - profit professional organization representing the software industry, Internet, information technology, new media and related companies whose business success is tied to the new economy. ASC has a thriving Leadership position in Austin and has been recognized as one of the most effective and influential organizations in the region Address: 3925 West Braker Lane 8400 Phone: 512 -305 -0023 Austin, TX 78759 Web Site. www.austinsoftwarecouncil.org E-mail ascinfo @aushnsoftwarecounctl.org Conferences Please visit the ASC web site to find out information on upcoming events. Council of Engineering and Scientific Society Executives (CESSE) Organization Description: CESSE is a not - for - profit organization whose purpose is to provide a forum for mutual exchange of experience, guidance, and discussion of common problems in operating these societies. The objective of CESSE is to advance, in the public interest, the arts and sciences of the management of engineering and scientific societies. Engineering and scientific societies have played a key role in the advancement of science and engineering and continued professional development of engineers and scientists. CESSE expects to continue to provide networking, educational, and training opportunities for the staffs of engineering and scientific societies to assure that these societies continue to provide them a key role in the future Members: 850 individuals Annual Budget: $100 — 250,000 Staff :: None Contact Person: Refer to website Address: 601 Madison Street Phone: Refer to website Appendix B: Target Industry Associations Alexandria, VA 22314 -1791 Fax: Refer to website Web Site: www.cesse.org Annual Conference Meeting: CESSE 2001 Annual Meeting When held: July 18 -21 2000 Schedule: Houston, TX Future Locations: 2002 — San Jose, CA/July 23 -26 Sponsor Levels: Various opportunities within wide cost range Recommendation: CESSE has no permanent staff or headquarters. Work is done by committee members from their respective offices and companies. Responsibilities for meeting planning and sponsorships therefore vary by event. CESSE's website should be referenced for contact persons and addresses to send marketing materials to recruit future meetings and inquire regarding sponsorship opportunities. Opportunities vary widely for CESSE's Annual Meeting from hosting receptions to giving away vacation packages to sponsor cities. All sponsors are listed on the conference web site. Industrial Telecommunications Association (ITA) Organization Description ITA is an FCC - certified Frequency Advisory Committee that provides a variety of telecommunications services, including frequency coordination, system engineering, licensing, FCC research, license data and retaining transition strategies. ITA is the national advocate for more than 3,000 wireless licensees and 500 two -way radio dealers, representing their communications interests before the Federal Communications Commission and Congress. Members: Annual Budget: Contact Person' Address: 7500 partnerships and corporations $1 — 2,000,000 Staff :: 30 Ray Wisniewski, Marketing Director 1110 N. Glebe Road, Suite 500 Phone: 800 -482 -8282 Arlington, VA 22201 -5720 Fax: 703 - 524 -1074 www.ita - relay.com Web Site: Annual Conference Meeting: 2001 ITA Spectrum Management Conference & Exposition When held: September 19 - 2001 Schedule. Washington, D.C. Recommendation: ITA sponsors one annual conference. Send marketing materials to above contact. AngelouEconomics 164 Information Technology Association of America (ITAA) Organization Description: ITAA is the leading trade association of the U.S. information technology industry. ITAA's direct and affiliated member companies create and market products and information services associated with computers, communications, and data. ITAA sponsors a wide range of services, meetings and activities that enhance an IT firm's ability to remain competitive in the marketplace. Through its advocacy efforts, ITAA helps to foster an environment which is conducive to the health, prosperity and competitive nature of the information technology industry and to help its members succeed in delivering the benefits of IT to their customers. With the aid of its four divisions, ITAA represents the IT industry's interests in issues such as intellectual property protection, government procurement, telecommunications policy, taxation and privacy. Members: 400 direct/26,000 affiliate companies Annual Budget. $2 — 8000,000 Staff: 20 Contact Person. Shannon Bickford, Conference Planner Address: 1401 Wilson Boulevard, Suite 1100 Phone: 703-522-5055 Arlington, VA 22209-3106 Fax: 703- 525 -2279 Web Site: www.ITAA.org Email: sbrckford @daa.org Annual Conference Meeting: National IT Workforce Convocation Attendees: Up to 800 When held: Spring and Fall 2001 Schedule: Orlando, FL Future Locations: 2002 — Las Vegas, NV Recommendation: Opportunities exist for regional chapter meeting in Austin area. Work through D.C. representative to maintain contacts and provide updated marketing materials. Institute of Electrical and Electronic Engineers Organization Description: The IEEE is a non - profit, technical professional association of more than 350,000 individual members in 150 countries. Through its members, the IEEE is a leading authority in technical areas ranging from computer engineering, biomedical technology and telecommunications, to electric power, aerospace and consumer electronics, among others. Through its technical publishing, conferences and consensus -based standards activities, the IEEE produces 30 percent of the world's published literature in electrical engineering, computers and control technology and hold annually more than 300 major conferences. The IEEE is made up of 10 Regions, 36 Technical Societies, four Appendix B: Target Industry Associations Technical Councils, approximately 1,200 individual and joint Society chapters, and 300 Sections. Members: Annual Budget: Contact Person: Address: 315,000 individuals $110,000,000+ Staff: 600 Marie Madden/Ms. Michael Ellis — Conference Directors 445 Hoes Lane Phone: 732-562-5362 Piscataway, NJ 08855 Fax: 732-981-1201 Web Site: www.ieee.org Email: spadilla @ieee.org IEEE Central Texas Chapter — San Antonio Contact Person: Kevin Nickels Phone: 210-999-7543 Emart Knickels @trinity.edu Annual Conferences IEEE and its 36 technical societies sponsor over 300 conferences each year Attendance ranges from 200 to over 10,000. Other Conferences Include: - Web 2001 Conference, San Antonio, TX, June 25 -26, 2001 2001 IEEE International Conference on Computer Design, Austin, TX , September 23-25, 2001 Recommendation: Send marketing materials to inquire regarding sponsorship opportunities to above contacts at IEEE as well as the Central Texas Chair. Conduct special efforts at Austin conference in September. Institute of Electrical and Electronic Engineers (IEEE) Computer Society Organization Description: With nearly 100,000 members, the IEEE Computer Society is the world's leading organization of computer professionals. Founded in 1946, it is the largest of the 35 societies organized under the umbrella of the Institute of Electrical and Electronics Engineers (IEEE). The Computer Society's vision is to be the leading provider of technical information and services to the world's computing professionals. Members: 93,000 individuals $25 — 50,000,000 Staff 105 T. Michael Elliot, Ph.D., Executive Director 1730 Massachusetts Avenue, N.W. Washington, D.C. 20036 202. 371 -0101, 202.371 -1013 (conferences) 202 - 728 -9614 www.computer.org Annual Budget: Contact Person: Address. Phone: Fax: Web Site: AngelouEconomics 165 Annual Conference Meeting: IEEE Computer Society hosts over 140 technical conferences throughout the year. Future Locations: Conferences rotate around the nation /world. SC and ITC are already booked 10 years out, cities not announced. Sponsor Levels: No non - industry sponsors. Recommendation: As largest Society within IEEE, it may be beneficial to solicit directly to recruit nationaVregional conferences. Send marketing materials to above contact. International Communications Industries Association (ICIA) Organization Description. U IICIA's commercial members include: video, audio - visual and computer dealers; equipment manufacturers and video and computer software producers; educational and training publishers; video and A -V rental firms; designers and installers of video and sound systems. Associate memberships open to end -users in business, education, health care and government. ICIA cooperates with other industry associations on projects such as legislation, copyright, international marketing, statistics and technical standards and awards the CTS (Certified Technology Specialist) designation. The organization sponsors and supports the Audio - Visual Communications Fund PAC and operates the Educational Communications Foundation ICIA absorbed the Association of Media Producers in 1982 The Independent Media Producers Association became a council within ICIA in 1985. ICIA sponsors INFOCOMM International, an annual trade expo for video, multimedia presentations, A -V, audio, and computer dealers, as well as INFOCOMM Asia, a communications technology exposition held in Singapore. Members: 1018 companies, 438 associates Annual Budget: $2 — 5,000,.000 Staff 21 Contact Person: Klaus Winkler Address: 11242 Waples Mille Road, Suite 200 Phone: 800-659-7469 Fairfax, VA 22030 Fax: 703 - 278 -8082 Web She: www.icia.org E - mail:Isla@ Annual Conference Meeting: Attendees: When held: 2001 Schedule: Future Locations INFOCOMM 25,000+ June 13 -15, 2001 Las Vegas, NV Will rotate on two -year cycles between Las Vegas and Orlando for next 20 years (until 2020). Appendix B: Target Industry Associations Internet Society (ISOC) Organization Description: Since 1992, the Internet Society has served as the international organization for global coordination and cooperation on the Internet, promoting and maintaining a broad spectrum of activities focused on the Internet's development, availability, and associated technologies. The Internet Society acts as a global clearinghouse for Internet information and education and also as a facilitator and coordinator of Internet - related initiatives around the world. ISCO offers an annual International Networking (INET) conference and other sponsored events, developing- country training workshops, tutorials, statistical and market research, publications, public policy and trade activities, regional and local chapters, standardization activities, committees and an international secretariat. Members: 8600 individuals, 150 companies Annual Budget: $2 5,000,000 Staff: Contact Person: Torryn Brazell, ACA, Director /Conferences Address: 11150 Sunset Hills Road, Suite 100 Reston, VA 20190-5321 Phone' 703-326-9880 Fax: 703 - 326 -9881 Web Site: www.isoc.org Email: membership @isoc.org Annual Conference Meeting: INET (International Networking) Attendees: 2000+ When held: June 5 -8, 2001 2001 Schedule: Stockholm, Sweden Sponsor Levels: Sponsorship opportunities available and vary by event Recommendation: INET is ISOC's annual conference, but the organization sponsors events throughout the year around the country and is looking for venues. Send marketing materials to recruit conferences to area as well as to inquire about sponsorships. Optical Society Of America (OSA) Organization Description. OSA is a professional society of optical engineers and scientists concerned with the fields of optics and photonics and is a member of the American Institute of Physics. OSA has five technical groups within the organization and sponsors almost 20 annual conferences each year. Members: 12,000 individuals Annual Budget $10 - $25,000,000 Staff 90 Contact Person: Suzanne Schneider, Director, Conf. Services (Sponsorships) Naomi Chavez, Assistant Director, Meetings (Venues) Address: 2010 Massachusetts Avenue, N.W. Phone: 202 - 223 -8130 AngelouEconomics 166 Washington, D.0 20036 Fax: 202-223-1096 Web Site: www.osa.org Major Annual Conferences Meeting; OSA Annual Meeting and Exhibit 2001 Attendees: 7,000+ When held: October 14 -18, 2001 2001 Schedule: Long Beach, CA Meeting. Optical Fiber Communication Conference and Exhibit 2002 Attendees' 7,000+ When held: March 17 -22, 2002 2002 Schedule Anaheim, CA Meeting: CLEO /QELS 2002 (Conference on Lasers and Electro- Optics /Quantum Electronics and Laser Science Conference) Attendees: 7,000+ When held: May 19 -24, 2002 2002 Schedule: Long Beach, CA Recommendation: Send marketing materials to inquire regarding sponsorship opportunities to above contacts. Satellite Broadcasting and Communications Association (SBCA) Organization Description: SBCA is the national trade organization representing all segments of the satellite industry It is committed to expanding the utilization of satellite technology for the broadcast delivery of entertainment, news, information and educational programming. The SBCA's member constituency is composed of DBS platform providers, programmers, manufacturers, distributors, retailers, encryption vendors and software technology providers. It also provides data and representation on legislative and regulatory actions affecting its members Members: 2100 companies Annual Budget: $5 – 10,000,000 Staff: 29 Contact Person: Lauri Nappi, Director of Trade Shows/Special Events Amy Miller, Exhibits Manager Address: 225 Reinekers Lane, Suite 600 Phone: 800- 541 -5981 Alexandria, VA 22314 Fax: 703-549-7640 www.sbca.com Email Inappi @sbca.org Web Site: Annual Conferences Meeting: SBCA Revolution National Satellite Convention and Exposition (SBCA 2001) Appendix B: Target Industry Associations Attendees: When held: 2001 Schedule: Future Locations Sponsorships: 5,600 August 2 -4, 2001 Nashville, TN 2002 – Denver, CO Opportunities for non - exhibiting sponsors include hosting the opening night Launch Party and providing closed - circuit television. Semiconductor Equipment and Materials International (SEMI) Organization Description: SEMI is a global trade association that represents the semiconductor and flat panel display equipment and materials industries. Founded in 1970 in the United States, SEMI has evolved into a worldwide organization committed to free trade and open markets. The primary goal of SEMI is to help its members expand their global marketing opportunities and improve access to their customers and industry, government and civic leaders. SEMI accomplishes this goal by providing its members with up -to -date, industry- specific information and educational resources needed to manage their company and market their products more effectively. SEMI represents more than 2,000 member companies worldwide whose combined products and services contribute more than $65 billion to the world economy. Members: 150 individuals, 2050 corporations Annual Budget: $45,000,000 St taf: 105 Contact Person: Louise Blumenfeld, Sponsorships Nancy Stewart, Manager, Executive Conferences Address: 3081 Zanker Road Phone: 408- 943 -6900 San Jose, CA 95134.2127 Fax: 408 - 428-9600 Web Site: www.semi.org Email: semihq @semt.org SEMI Southwest – Austin Contact Person: Terry Berke Phone: 512 -349 -2422 E -mail: therke @semi.org Exhibitions Meeting: Multiple international shows around world (i.e., SEMICON Southwest, SEMICON West, etc.) Attendees: Over 650 exhibitors at SEMICON conferences When held: Throughout the year 2001 Schedule: SEMICON Southwest: Austin, TX/October 16 -17, 2001 Sponsorships: Possible—depending on event and type AngelouEconomics 167 Executive Conferences Meeting: International Trade Partners Conference When: November 12-15, 2001 Location: Kohala Coast, Island of Hawaii Meeting ISS US 2002 When: January 6-9 2002 Location: Pebble Beach, CA Other Conferences Include: Technician Performance Improvement Council Annual Conference, Austin, TX, July 31- August 2, 2001 Recommendation: Send marketing materials to contacts in Executive Conferences and Sponsorships departments. Semiconductor Industry Association (SIA) Organization Description. SIA is the leading trade association representing the computer chip industry. The mission of the SIA is to provide leadership for U.S. chip manufacturers on the critical issues of trade, technology, environmental protection and worker safety and health. Members: 70 companies Annual Budget: $2 – 5,000,000 Staff: 12 Contact Person: Gail Lindus, Meeting Planner Address: 181 Metro Drive, Suite 450 Phone:408-436-6600 San Jose, CA 95110 Fax: 408-436 -6646 www.semichips.org Email: glindus_sia @ibm.net Web Site: Conferences Meeting: Public Policy Committee Meetings Attendees: Committee Members When held: July 17, 2001 2001 Schedule: Washington, D.C. Recommendation: SIA does not host a major industry trade show. The organization sponsors three board meetings throughout the year —two typically held in Washington, D.C. and an Annual Forecast Dinner held in California. Internal committee meetings are held throughout the year in various regions of the country and sponsorship opportunities may exist for the Annual Forecast Dinner. Marketing materials should be sent to the contact person. Software and Information Industry Association (SIIA) Organization Description: SIIA is the principal trade association for the software and digital content industry. SIIA provides global services in government relations, Appendix B: Target Industry Associations business development, corporate education and intellectual property protection to the leading companies that are setting the pace for the digital age. Members: 1200 companies Annual Budget: $5 – $10,000,000 Staff: 50 Contact Person: Tina Hochberg, Director of Conferences Address: 1730 M St. NW, Suite 700 Phone: 202- 452 -1600 Washington, D.C. 20036 -4510 Fax: 202-223-8756 Web Site: www.siia.net Email: tochberg@sra.net Annual Conference Meeting: Building & Strengthening Software Alliances & Partnerships When held: July 25 -26, 2001 2001 Schedule: New Orleans, LA Special Interest Group for Data Communications (SIGCOMM) Organization Description: SIGCOMM provides a forum for research and development in computer communications with a special focus on networks and network applications SIGCOMM is the Association for Computing Machinery's professional forum for the discussion of topics in the field of communications and computer networks, including technical design and engineering, regulation and operations, and the social implications of computer networking. Its members are particularly interested in the systems engineering and architectural questions of communication. Members: Annual Budget: Contact Person: Address: Web Site: Email: Annual Conferences Meeting: When held: 2001 Schedule: 5000 individuals $100 – 250,000 Erica Johnson, Program Director 1515 Broadway Phone: 212-626-0611 New York, NY 10036 Fax: 212 -302 -5826 www.acm.org/sigcomm johnson_e @acm.org ACM Sigcomm August 27 -31, 2001 San Diego, CA Telecommunication Industry Association (TIA) Organization Description: TIA is a full- service national trade organization with membership of 1000 large and small companies that provide communications and information technology products, materials, systems, distribution services and AngelouEconomics 168 professional services in the United States and around the world. The association's member companies manufacture or supply virtually all of the products used in global communication networks. TIA represents the telecommunications industry with its subsidiary, the MultiMedia Telecommunications Association (MMTA), in conjunction with the Electronic Industries Alliance (EIA). TIA's mission is to provide its members a forum for the examination of industry issues and information. The association serves as the voice of manufacturers and suppliers of communications and information technology products on public policy and international issues affecting its membership. TIA supports and strives to further the growth of the economy, the progress of technology and the betterment of humankind through improved communications. Members: Annual Budget: Contact Person: Address: Web Site: Email: Annual Conference Meeting: When held. 2002 Schedule' 1000 companies $5 — 10,000,000 Staff. 58 Henry Wieland, VP, Trade Shows/Marketing 2500 Wilson Boulevard, Suite 300 Phone:703-907-7700 Arlington, VA 22201 Fax: 703- 907 -7727 www.tiaonline.org hwieland@tia.eia.org SuperNet 2002 January 21- 24,2002 Santa Clara, CA Texas Cable and Telecommunications Association (TCTA) Organizational Description. The Texas Cable & Telecommunications Association (TCTA) was founded in 1960 to represent the interests of the cable industry in the state. Membership is comprised of system members and associate members. TCTA system members serve approximately 3.3 million of the 3.6 million homes and businesses in Texas. Associate members number over 250 and are individuals, firms and corporations engaged in providing goods and services used by cable television companies. Members: Contact Person: Address: 250 W.D. Arnold, President PO Box 13518 Austin, TX 78711 www.txcable.com Web Site: Annual Conference Meeting: Texas Show 2002 When Held: February 22 -March 1, 2002 Phone: Fax: Email: 512 - 474 -2082 512- 474 -0966 wda @txcable.com Appendix B: Target Industry Associations 2002 Schedule: San Antonio, TX UTC - The Telecommunication Association (UTC) Organization Description: Formerly (1994) the Utilities Telecommunications Council, UTC represents organizations using telecommunications in their operations before various federal and state legislative and regulatory agencies, particularly the FCC. For over 50 years, UTC has assisted members world wide who own, manage or provide critical telecommunications and IT systems in support of their core business. This global trade association's purpose is to create a business, regulatory and technological environment in which members will succeed. UTC's mission is to serve as: a leader in identifying and facilitating opportunities in a changing environment, an effective advocate for members on legislative, regulatory and business issues, a primary provider of telecommunications education, information and issue analysis, and a forum for the exchange of ideas and experiences. Members: Annual Budget: Contact Person: Address' Web Site: Email: Annual Conference Meeting: Attendees: When held: 2001 Schedule: Regional Meeting Meeting: When held: 2001 Schedule: 1500 companies $1 — 2,000,000 Staff: 20 Elissa Ehrenstein, Meetings Manager 1901 Pennsylvania Avenue, NW Phone:202- 872.0030 Washington, D.C.20006 Fax 202- 872 -1331 www.utc.org eehrenst @utc.org UTC Telecomm 2001 1000 June 24.27, 2001 Milwaukee, WI Texas - Louisiana Region 7 April 23.25, 2001 New Orleans, LA World Congress on Information Technology (WCIT) Organization Description: The WCIT is a preeminent global IT executive conference. Held every two years for the past 20 years in leading IT countries in North America, Europe, and Asia, the event brings together senior executives, academics, and officials from across the globe to engage in high -level networking, discussion, analysis, and future planning. Contact Person: Dr. James Poisant Address: 8300 Boone Boulevard, Suite 450 Phone: 703 - 790-0304 AngelouEconomics 169 Web Site: E -mail: Attendees: When held: 2000 Schedule: Retail /Restaurants Vienna, VA 22182.2633 www.worldcongress2000.org poisant @aol.com 1200 (over 50 countries represented) Every two years Taipei, Taiwan /June 11 -14 Fax: 703 - 748 -0238 International Council of Shopping Centers (ICSC) Organization Description Founded in 1957, the International Council of Shopping Centers (ICSC) is the global trade association of the shopping center industry. Its 39,000 members in the U.S., Canada and more than 75 other countries include shopping center owners, developers, managers, marketing specialists, investors, lenders, retailers and other professionals as well as academics and public officials. Members: 39,000 Contact Person: Kurt's Wallin, Membership Address: 1221 Avenue of the Americas, 41st Fl. Phone: 646-728-3800 New York, NY 10020-1099 Fax: 212- 589 -5555 Web Site: www.icsc.org Emart kwallin@icsc.org Annual Conference Meeting: ICSC 2001 Fail Management & Marketing Conference When Held: October 24-26, 2001 2001 Schedule: Orlando, FL Regional Meeting Meeting: Texas Idea Exchange When Held: November 1 -2, 2001 2001 Schedule: San Antonio, TX Texas Restaurant Association (TRA) Organizational Description: For more than 60 years, the Texas Restaurant Association has served its members and the foodservice industry with political advocacy, industry education, and foodservice training. Its non - profit status guarantees that the organizational focus remains supporting the business of the Texas restaurateur. The six -plus decades of commitment speaks loudly to the state's foodservice profession as evidenced by the some15,000 site locations represented by Texas Restaurant Association. Appendix B: Target Industry Associations Members: 15,000 + Contact Person: Director of Membership Address: PO Box 1429 Phone: 800-395-2872 Austin, TX 78767 -1429 Fax: 512-472-2777 Web Site: www.restaurantville.com E -mail: membinfo @tramail.org Annual Conference Meeting: 2001 Southwest Foodservice Expo When Held: June 10 -12, 2001 2001 Schedule: Dallas, TX Other Conferences Include Panhandle Boot Camp, Texas, August 6-7, 2001 Westem Foodservice and Hospitality Exposition, Los Angeles, CA August 25 -28, 2001 Texas Retailers Association (TRA) Organizational Description: Over 1,000 companies and corporations operating thousands of stores and employing over 500,000 Texans in the retail industry comprise the membership of the Texas Retailers Association. Membership ranges from the independent proprietor to the large multi - national corporation. Department stores, specialty shops, drug stores, grocery stores, discount stores, hardware stores, jewelry shops...all are members of the Texas Retailers Association. Members: 1,000 companies Contact Person: Ruth Judge Address: 504 West 12 Street Phone:512- 472 -8261 Austin, TX 78701 Fax: 512 -474 -5011 Web Site: www.txretailers.org Annual Conference Meeting: 2001 TRA Convention When Held: September 15-17, 2001 2001 Schedule: Galveston, TX Health Care American Pharmaceutical Association (APhA) Organizational Description: The American Pharmaceutical Association (APhA), the national professional society of pharmacists, was founded in 1852 and is the first established and largest professional association of pharmacists in the United States. The more than 50,000 members of APhA include practicing pharmacists, AngelouEconomics 170 pharmaceutical scientists, pharmacy students, pharmacy technicians, and others interested in advancing the profession. Members: 50,000+ Contact Person: Director of Membership Address: 2215 Constitution Avenue NW Phone: 202 - 628 -4410 Washington, D.0 20037 -2985 Fax: 202-783-2351 Web Site: www.aphanet.org E - mail: gen @ mail.aphanet.org Annual Conference Meetings: APhA Annual Meeting and Exposition When Held. March 2001 2001 Schedule: San Francisco, CA Future Locations' March 15 -19, 2002 – Philadelphia March 28 -April 1, 2003 – New Orleans March 26 -30, 2004 – Seattle April 1 -5, 2005 – Orlando National Association of Biomedical Research (NABR) Organizational Description: The National Association for Biomedical Research (NABR) is the only national, nonprofit organization dedicated solely to advocating sound public policy that recognizes the vital role of humane animal use in biomedical research, higher education and product safety testing. Founded in 1979, NABR provides the unified voice for the scientific community on legislative and regulatory matters affecting laboratory animal research NABR's membership is comprised of over 350 public and private universities, medical and veterinary schools, teaching hospitals, voluntary health agencies, professional societies, pharmaceutical companies and other animal research - related firms Members: 350+ Contact Person: Director of Membership Address: 818 Connecticut Avenue NW, Suite 200 Phone:202- 857 -0540 Washington, D.0 20006 Fax: 202-659-1902 Web Site: www.nabr.org E - mail: info @nabr.org Texas Association of Community Health Centers (TACHC) Organization Description The Texas Association of Community Health Centers (TACHC) is a nonprofit organization. TACHC serves as the primary care association for the state of Texas. TACHC's members include federally qualified health centers in the state, as well as look -alike clinics. TACHC provides advocacy for the Centers at the state and national level, assists with grant writing, pharmacy and lab contracts, recruitment and retention programs, and provides other technical assistance as needed. Appendix B: Target Industry Associations Members: 36 member centers Contact Person: Jose E. Camacho, Executive Director Address: 2301 S. Capital of Texas Highway Phone: 512- 329 -5959 Austin, TX 78746 Fax: 512-329-9189 Web Site: www.tahc.com Emait tcamacho @tachc.org Annual Conference When Held: October 2001 Texas Healthcare and Bioscience Institute (THBI) Organizational Description: The Texas Healthcare & Bioscience Institute is composed of biotechnology, medical device, and pharmaceutical companies, universities and private research institutions, and companies that provide goods and services to core organizations. The goal of THBI is to develop solid information about the medical research and manufacturing community in Texas, and to make that information available to political leaders, the news media, venture capitalists, investment bankers, and the public. Contact Person: Thomas Kowalski, President Address. 815 Brazos Street, Suite 310 Phone: 512-708-8424 Austin, TX 78701 Fax. 512 - 708 -1607 Web Site: www.thbi.com E - mail: thbiinfo@thbi.com Annual Conference Meeting: °Tools of the Trade' -2001 Summer Meeting When Held: June 14, 2001 Location: Austin, TX Business Services American Institute of Certified Public Accountants (AICPA) Organizational Description:: The American Institute of Certified Public Accountants is the national, professional organization for all Certified Public Accountants. Its mission is to provide members with the resources, information, and leadership that enable them to provide valuable services in the highest professional manner to benefit the public as well as employers and clients. Members: 330,000 Address :1720 Lake Pointe Drive, Suite 117 Phone: 214 -222 -8200 Lewisville, TX 75057 Fax:214 Web Site: www.aicp.org AngelouEconomics 171 Association for Financial Professionals Organizational Description: The Association for Financial Professionals in Bethesda, Maryland, formerly the Treasury Management Association, has grown in the past 20 years into a community of more than 14, 000 individuals representing a broad spectrum of financial disciplines. AFP tums knowledge into performance by supporting members throughout all stages of their careers with research, continuing education, career development, professional certifications, publications, representation to key legislators and regulators, and the development of industry standards. Members' Contact Person: Address. Web Site Annual Conference Meeting: When Held: 2001 Schedule: 14,000 Maria DeRyke, Director of Membership 7315 Wisconsin Ave., Suite 600 West Phone* 301-907-2862 Bethesda, MD 20814 Fax: 301 - 907 -2864 www.afponline.org E -mail mderyke@AFPonline.org 22"^ Annual Conference October 16, 2001 Chicago, IL National Association of Insurance Commissioners (NAIC) Organizational Description: The National Association of Insurance Commissioners (NAIC) is the organization of insurance regulators from the 50 states, the District of Columbia and the four U.S. territories. The NAIC provides a forum for the development of uniform policy when uniformity is appropriate Contact Person: Michele Kiely Address: 2301 McGee, Suite 800 Phone: 816- 842 -3600 Kansas City, MO 64108 -2604 Fax: 816-783-8012 Web Site: www.naic.org E -mail: mkiely@naic.org Annual Conference Meeting: 2001 Winter National Meeting When Held: December 8 -11, 2001 2001 Schedule: Chicago, IL Future Locations: March 2002 - Reno, NV June 2002 - Philadelphia, PA September 2002 - New Orleans, LA December 2002 - San Diego, CA Appendix B: Target Industry Associations Real Estate Council of Austin (RECA) Organizational Description: The Real Estate Council of Austin, Inc. (RECA) is a member - oriented organization committed to economic development and real estate - related issues in one of the fastest growing cities in the United States. RECA's mission is to be an effective resource and advocate for the interests of the real estate industry and to promote and sustain the Greater Austin region as an outstanding community in which all its citizens have the opportunity to find meaningful employment, affordable housing and outstanding education within a clean and safe environment. Members: 940 Contact Person: Janice Cartwright, Executive Director Address: 98 San Jacinto Boulevard, Suite 180 Phone:512- 320 -4151 Austin, TX 78701 Fax: 512- 320 -4152 Web Site: www.recaustin.com E -mail jcartwright @recaonline com Conferences RECA holds monthly meetings and conferences. Please visit their web site for a complete list of upcoming events. Future Conferences include Membership Luncheon, Four Seasons Hotel, Austin, August 29, 2001 The Texas Society of Certified Public Accountants (TSCPA) Organizational Description: The Texas Society of Certified Public Accountants (TSCPA) is a nonprofit, voluntary, professional organization representing Texas CPAs. TSCPA has 20 local chapters statewide and has 27,000 members, the largest in -state membership of any CPA organization in the nation. The Society is committed to serving the public interest with programs that advance the highest standards of ethics and practice within the CPA profession. Members: 27,000 Contact Person: Suzy Whittenton, President of Austin Chapter Address: 512 E. Riverside Drive, Suite 100 Phone: 512-445-0044 Austin, TX 78704-1356 Fax: 512-445 - 0043Web Site: www.tscpa.org E -mail: suzy.whittenton @tpwd.state.tx.us Annual Conference Meeting: Annual Awards Banquet When Held :: May 22, 2001 2001 Schedule: Mirabelle Restaurant, Austin, TX AngelouEconomics 172 AngelouEconomics Appendix C: Sample Marketing Campaign You're invited to discover how Round Rock, Texas is a community in which you, your family, and your business can achieve success. 173 Appendix C: Sample Marketing Campaign *x jlllCi _i;_t� - - magazine recently ranked Round Rock the number one location in the state for business expansions and relocations. AngelouEconomics 174 Home to to• technolo• companies. AngelouEconomics Appendix C: Sample Marketing Campaign labse Dm °uP — Westin T ; DuPont t Fhotvinask � TEMWi house HOTRONlCS Round Rock is the headquarters location for leading companies in semiconductors, electronics, computer manufacturing, tele- communications, e- business and software. ccess`starts here 175 Appendix C: Sample Marketing Campaign Home of Dell. r r L Round Rock is the birthplace and home of the world's number one computer systems company, Dell Computer. It is also the new home to the headquarters of Sears.com. ROC K t u_ccess startshere AngelouEconomics 176 Appendix C: Sample Marketing Campaign _____ La Frontera, one of Texas most successful mixed use developments, is located in Round Rock. The state-of4he-art site is now open for office, retail, hotel, and urban living. AngelouEconomics Appendix C: Sample Marketing Campaign Home of successful living. J @TS �I , 4i ,- s � _. .� � � _ r n{ •{� F� w r 9 ! 5.x-1- a p' C4 , w r r A small town feel within the technology capitol of Texas. Round Rock offers families the best neighborhoods, school district, and recreation in a historic center of Central Texas. )Roc 4 t access,sstaris here1 x AngelouEconomics 178 Appendix C: Sample Marketing Campaign Located in Williamson County, the l3th fasest in the U.S., Round Rock's residents are some of the highost skilled individuais in the country: . Nearly half of Austin area patents are from Williamson County . 42% of all jobs in Round Rock are high tech . Round Rock wages are 36% higher than the national average . Median household incomes highest in the Austin region AngelouEconomics AngelouEconomics Appendix C: Sample Marketing Campaign Round Rock schools are top in the nation. Round Rock ISD is ranked as one of the best in the U.S. with 84% of its graduating seniors attending college. In 2000, Round Rock's Westwood High School was ranked in the top 50 high schools in the country. 180 Appendix C: Sample Marketing Campaign Home base for the Round Rock Express. r r Legendary baseball pitcher Nolan Ryan chose Round Rock as home base to start the success of his new minor league franchise, The Round Rock Express. The team won a Texas League Championship and set an all -time attendance record in its 2000 Inaugural Season. � , �; t x uccess starts!here AngelouEconomics 181 Appendix C: Sample Marketing Campaign Where will you start your success? AngelouEconomics 182