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2011 Rockforward! Annual Report

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2011 Rockforward! Annual Report Rockforward! Creating the FutureYear we want Four Now Rockford Area Economic Development Council Annual Report 2011 TABLE OF CONTENTS Page 1 Letter from Chairman of the Board and President Page 2 Success Stories for the Rockford Region Page 4 Measuring the Success of Rockforward! Page 6 Rockforward! Strategy: Creating a Thriving Business Climate Page 7 Rockforward! Strategy: Targeted Marketing & Recruitment Page 8 Rockforward! Strategy: World Class Business Infrastructure Page 9 Rockforward! Strategy: Workforce Development Page 10 Rockforward! Strategy: Emerging Opportunities Fund Page 11 Rockford Area Aerospace Network (RAAN) Page 12 Additional Programs and Information Available Page 13 RAEDC Solutions Teams and Committees Page 14 2011 Board of Directors and Staff Page 15 2011 Rockforward! Investors Page 16 Rockforward2! Dear Investors and Stakeholders, Thank you for your generous support and committed leadership as investors of the Rockford Area Economic Development Council (RAEDC). RAEDC investors are comprised of nearly 200 private-sector companies, public-sector entities and labor and trade unions, business and quasi-governmental organizations, educational institutions and nonprofit agencies. These groups, along with the collective efforts of our region’s team of professionals and elected officials, are the driving forces behind our many accomplishments in 2011. In May of 2007, the RAEDC Board of Directors approved Rockforward!, a five-year strategic plan for 2008-2012. Rockforward!’s five powerful strategies challenge the RAEDC to influence change in areas that take advantage of our strengths, overcome our weaknesses and invest in opportunities while mitigating threats. Over the past four years, the RAEDC has been implementing and continuously improving the Rockforward! strategic plan; we know that Rockforward! results impact the region, making it stronger and better than it was before. In just over four years, our results have been impressive. But for the Rockforward! plan, the results we have achieved would not be possible. All of this is made possible by you, our investors, and the climate of collaboration we create together. In this fourth Annual Report since the launch of Rockforward!, you will find profiles of investments made in 2011 by existing and new employers in the Rockford Region, along with specific results from each of the five primary strategies of Rockforward! In addition, you’ll read recognition of the private- and public-sector organizations that drive the work of the RAEDC through investment and volunteer leadership. Now, more than ever, we must align our strategies, pool our resources and work together to sustain and strengthen the economic health of our region. We are grateful to those of you who make the choice to invest in the RAEDC. Your continued support ensures that our region is moving forward. Together, we can create the future we want now. Together, we can Rockforward! Sincerely, Bill Roop RAEDC Chairman of the Board Alpine Bank President & CEO Janyce Fadden RAEDC President 1 SUCCESS STORIES FOR THE ROCKFORD REGION Our regional partners and the RAEDC work on a variety of projects each year, ranging from business retention, expansion and attraction; property development; workforce development; foreign trade and entrepreneurial growth. The collective efforts reported herein is the work of our region’s team of professionals and elected officials attracting and retaining businesses. Join us in celebrating the following 2011 regional success stories generating new wealth for our community: Accelerated Machine Design & Engineering, a custom machinery/metalworking start-up, expanded by 2,000 square feet and added seven jobs. AIM Distribution moved to a larger facility and invested approximately $200,000 to help fuel future growth. American Aluminum Extrusion Company bought a 277,000 sq. ft. vacant facility in Roscoe. Job creation is expected to exceed 120. The RAEDC helped the Village of Roscoe create a strategy that secured over $750,000 in grant funding for this project from the State of Illinois for infrastructure. B/E Aerospace broke ground on its new production and development facility in the Rockford Logistics Park. The 40,000 sq. ft. facility required an investment of several million dollars and will result in 70 full-time positions. B/E Aerospace is the first EIGERlab client to expand directly into a build-to- suit structure. Pictured above, bottom right. New owners are investing over $1 Million in Chiquita Food Market on South Main Street. This investment is expected to generate 70 new jobs in the community. Crusader Community Health opened a 14,000 sq. ft. facility in Loves Park. The $4 Million investment will bring 15 jobs to the new location. Pictured above, upper left. DLM Manufacturing Inc. expanded to allow for additional manufacturing capacity. The $750,000 investment is expected to add up to seven jobs. Pictured above, upper right. Eclipse, Inc. announced the re-shoring of work from India to Rockford, the corporate headquarters. 2 The expansion includes a $1 Million investment and the creation of up to 30 jobs. SUCCESS STORIES FOR THE ROCKFORD REGION Fastenal announced a $3.5 Million investment in a 44,000 sq. ft. expansion at its facility in Loves Park that is expected to add 20 jobs. Field Fastener Supply Company constructed a 40,000 sq. ft. expansion of its corporate headquarters in Machesney Park that is expected to add 15 jobs. Pictured below, upper left Illinois Growth Enterprises and a partner agency located a call center in the EIGERlab. Job creation is expected to exceed 30 employees. Pictured below, right. Leading Edge Hydraulics acquired a 63,000 sq. ft. building to accommodate expansion efforts within its business. LEH invested nearly $1 Million dollars in the expansion, which is expected to generate 40 new jobs within the community. Lyonscg, an e-commerce company, re-shored approximately 10 jobs from Kiev, Ukraine, to the EIGERlab, and continued to expand throughout 2011. The company chose the EIGERlab because of its IT capabilities and flexibility. NCO Group announced 400 new jobs at its Rockford facility to accommodate growth in its call center operations. Noark Electronics Co, LTD, headquartered in Shanghai, China, opened an office in Rockford with the anticipation of it becoming Noark’s North American headquarters, housing sales, marketing, warehousing and R&D. Olson Aluminum Castings invested over $1.5 Million to increase its manufacturing space by 15,000 square feet. Olson anticipates seven new positions as a result of this expansion. Railroad Construction Equipment invested $750,000 in an 11,000 sq. ft. expansion, which is expected to add 15 jobs at its Rockford location. Rockford Toolcraft, Inc. invested $2 Million in a 40,000 sq. ft. expansion, which is expected to add 25 jobs. Pictured above, left. Rubloff Development Group, Inc. made a $10 Million investment in the redevelopment of Machesney Park Mall. The project employed up to 205 individuals in the construction industry. The U.S. Department of Veterans Affairs began construction on its new primary-care clinic. The 30,000 sq. ft. clinic is expected to open in 2012, and will be located in Rockford. Venture One Real Estate LLC constructed a 100,000 sq. ft. build-to-suit warehouse facility for Danfoss Power Electronics at its Loves Park Corporate Center location. The expansion is expected to create 25 jobs. 3 YEAR FOUR AND COUNTING... Measuring the Success of Rockforward! The goals of Rockforward! are methodically tracked through numerous metrics to evaluate the effectiveness of the RAEDC’s marketing and recruitment activities. These include: H net new primary jobs and jobs recruited H population growth H per capita income H economic development exposure H international exports H development ready land parcels H Gross Metropolitan Product (GMP) increase The RAEDC utilizes a wide array of statistical resources to produce these metrics, including the Illinois Department of Employment Security, the U.S. Department of Commerce, the U.S. Census Bureau, the U.S. Bureau of Economic Analysis, Northern Illinois University, and our own Voice of the Customer surveys. Evaluating 2011 Results Over the last four years, our results have been impressive. But for the Rockforward! plan, the results we have achieved would not be possible. Due to the effect of the Great Recession, an annual fixed rate of growth no longer applies. However, our results indicate our region is working together to achieve our goals despite this unprecedented economic downturn. First, job growth continued for the second-straight year in the Rockford Metropolitan Area. The overall number of jobs increased 1.3%, with the largest gains in manufacturing (+8.4%), transportation/ warehousing/utilities (+4.7%), professional and business services (+5.4%), and education and health services (+1.3%). Rockford’s job growth overall was greater that the overall growth rate of the state, and Rockford’s growth in the manufacturing sector more than tripled the state’s rate. Second, our region’s Gross Metropolitan Product increased by 3.5% to $11.1 Billion in 2010, the most recent year available from the U.S. Bureau of Economic Analysis. The State of Illinois experienced 1.9% growth and the U.S. experienced 3.0% growth during the same period. Rockford Region Jobs in 12-Month Moving Average, 2011 160 140 120 100 80 60 40 20 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Non-Manufacturing Manufacturing Source: Illinois Department of Employment Security 4 YEAR FOUR AND COUNTING... We can also point to results from 2011 client projects managed by our regional partners and the RAEDC. Thanks to your support our region was able to achieve these results in this challenging economic climate. As estimated by our clients, 1,770 new jobs will be created in the Rockford Region by existing and new employers, $53.6 Million of capital investment will be made, and 1.1 Million square feet of space will be added in the coming years.
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