Working with a Regional Economic Development Organization: An Insider's Perspective
 
October 5, 2001
 

Regional economic development organizations have been formed in many communities to promote the growth of businesses and to increase the number of local high-wage jobs. These organizations often uniquely are positioned to help businesses seeking either to relocate or to expand into a new market. This article provides an overview of the benefits available to businesses if they consult with local economic development organizations when they plan to move or expand. The opinions expressed in this article are my own, based on my experience as a member of the Board of Directors of the Los Angeles County Economic Development Corporation (the LAEDC).

Economic Information about the Region

Regional economic development entities often collect and disseminate hard-to-find information useful for businesses. The type and range of information produced by such economic development entities varies, depending on the size and scope of the market that the economic development organization serves, and its own resources. For example, the LAEDC's economists and staff systematically collect, analyze and summarize in plain English economic and demographic information concerning Los Angeles County, its 88 cities and its significant geographic regions.

Fortunately, the information available from such organizations often goes beyond dry statistics: for instance, the LAEDC regularly publishes reports on local industries as diverse as international trade, the apparel industry, the film industry, manufacturing, the retail industry, the sports business and regional technology. It also provides information about key industry clusters that drive the Los Angeles economy, as well as periodic forecasts discussing the effects on those industries of national and international economic trends.

Because the Los Angeles area has such a large and diverse economy, it is hard to understand. Our local economy is generally not well-covered by or explained in the national media, which often seems to be more intrigued by the "calamity of the week" than the good, but relatively dull, economic news about the area. The LAEDC fills that vacuum by providing verifiable information organized into useful formats. Such information has been useful to me professionally; I have used it to explain to our firm's clients, especially those based elsewhere, what makes our regional economy work, and to negotiate better terms in our clients' transactions.

Introductions to Political and Business Leaders

An economic development entity also can introduce principals in a relocating or expanding company to local business leaders and to key public decision makers. Such introductions smooth the path of a business moving into a new market. For example, the staff at the LAEDC often introduces company owners and officers to planning staff, local mayors and council members, and to LAEDC members who work in similar businesses or are suppliers or service providers that might be useful to that business. In my experience, such local contacts can be vital to obtaining support for new projects - especially if they have political hurdles to overcome. In addition, informal contacts can help knit key executives into the community on a social as well as a professional basis.

Service to Businesses

Most economic development organizations also provide business development services, often at no charge or for a modest fee. However, most economic development organizations do not compete with private sector service providers. Instead, they focus on attracting, retaining and growing businesses and high-wage jobs in the area they serve. Groups such as the LAEDC can provide additional information about local business conditions, or possible sites, to a company without disturbing its ongoing relationships with its site selection consultants, brokers and other professionals. In addition, the LAEDC staff often helps resolve regulatory and permitting issues. It also aids businesses in identifying workers and work force development programs, local service providers and financing sources. I have used the LAEDC staff to provide information to develop legal and business strategies for highly confidential expansions and politically charged relocations of businesses.

Leadership through Development of Public Policies

Economic development organizations often spend time developing and sharing information about public policy issues that impact the competitive aspects of a local economy. For example, in Los Angeles, the LAEDC has taken a leadership role in developing information about, and building a consensus for, the development of infrastructure improvements. Recently it has prepared and circulated to business and political leaders its economists' analysis of what steps should be taken to resolve our current energy shortage and its financial fallout.

Moreover, economic development entities sometimes serve as a network of organizations, and provide a useful link into other local organizations that can be helpful to relocating or expanding businesses. For example, in Los Angeles, the LAEDC supports specific industry sectors through strategic alliances with trade groups and educational institutions including the World Trade Center Association, the Black Business Association, the Los Angeles Regional Technology Alliance, the Southern California Biomedical Council, the University of Southern California, the Regional Business Assistance Network, and many other local associations. It promotes coordination and communication among such institutions, government and businesses.

Local economic development organizations provide a relocating or expanding business with a single point of contact into the web of organizations that are available in the region to help that business navigate in its new market. By providing such vital local contacts and information, economic development organizations can give businesses a head start in making their relocations or expansions successful.

For more information, contact Maura O'Connor at 1-888-688-8500 or via e-mail at moconnor@hklaw.com.