- Navigator
- Strategic Planning
We are stepping into a new world economic order that some embrace and others dread. This new order is challenging the status quo by arguing, among other things, that social and economic programs and policies put in place over the last century are inefficient and wasteful and must be modified, redirected, and/or eliminated.
This will present significant fiscal challenges, program and economic uncertainty, as well as opportunities for economic development. Economic developers are the linchpins between the private sector and government, fostering investment, job creation, and resilient economies.
While the economic development profession itself has evolved alongside the past century’s economic order, it has become readily apparent that three overarching transition themes will dominate the narrative. These are not new themes, but they have become more nuanced and complex. We believe expectations for each will be higher, and the stakes will be much greater.
First, demonstrating a positive return on investment (ROI) in all activities will take center stage and be required for the profession to remain relevant. Doubt is endemic and the ability to provide convincing proof will be invaluable.
Second, disparities and structural shifts demand fresh approaches to ensure that future economic growth benefits everyone. The elusive challenge of broadening the base of prosperity will press heavily on economic developers and policymakers, not just to identify solutions, but to implement them.
Third, technology adoption to increase productivity will continue to disrupt every industry and organization, including economic development, at an unprecedented pace, forcing communities to rethink and adapt their organizations and economic strategies to be efficient, effective, and competitive. Adapting quickly and staying ahead of technology improvements is imperative.
We recommend eight specific strategies, referenced by case studies from Camoin Associates’ portfolio, to help economic developers navigate the shifting landscape.
1. Be the Leader, Not the Laggard
Budget constraints and political shifts will test your ability to lead economic development programs and organizations. Strengthening your ecosystem’s capacity to navigate change, forge partnerships, and remain effective despite uncertainty is essential. Your stakeholders need to have your back, and you theirs.
Case Study: Fairfax County, VA
One of the nation’s most tech-savvy and high-performing counties stays on top by anticipating change. Late last year they launched a full-scale effort to reassess internal capacities, realign resources, and put in place a new five-year cohesive strategy to sustain economic strength. The new blueprint will help the County maintain its competitive advantages amid unprecedented disruption as deep cuts are now affecting Northern Virginia’s 175,000 civilian federal workforce and businesses that rely on government contracts.
2. Know the ROI
Cost-cutting and investment justification dominate the conversation, making return on investment (ROI) the decisive factor. Now more than ever, the public will demand that economic developers demonstrate tangible outcomes and be able to explain the economic, fiscal, and social benefits of development-related investments through data-driven analyses. This requires understanding how new investment impacts jobs, spending, economic activity, and public revenue and costs.
Case Study: Westchester County, NY
To measure the effectiveness of investments in entrepreneurship, workforce development, and private sector growth, this county outside New York City decided to develop a data-backed model to systematically and regularly assess the cost-benefit of its incentives, ensuring public resources are well spent.
3. Stand the Test of Time
You won’t be able to do everything. You will need to be laser-focused on helping to create adaptive, forward-thinking plans of action that attract investment, support sustained growth businesses, prioritize resources, and foster economic vitality in uncertain times. Focusing on short-term results must be done with respect for both the past and future in mind.
Case Study: Oak Park, IL
Oak Park, a historic community with unparalleled architectural heritage (there are more Frank Lloyd Wright-designed homes here than anywhere in the world), suspended operations of its economic development corporation to conduct a thorough analysis of how to integrate a wider set of economic considerations into its approach. They developed a five-year economic vitality strategic plan that focuses on reorganizing operations, diversifying the economic base, improving the built environment, and ensuring long-term prosperity.
4. Sharpen Your Pencil
Projects must “pencil out.” It’s all about managing risk, and 2025 will have plenty of it. Unlocking private investment and leveraging market-driven solutions to meet real estate development and infrastructure challenges can be tricky, especially in the office market, which in some regions has been upended by remote and hybrid work, flex spaces, and hot-desking. With higher space vacancies, lower office valuations, and soaring home values, we increasingly see shifts in the property tax burden on residential properties.
Case Study: Windsor, CT
Market and fiscal analyses helped reposition a high-vacancy corporate corridor into a mixed-use district, integrating advanced manufacturing, data centers, and residential uses.
5. Remember the Dream
It’s hard to believe, but the concept of the “American Dream” was coined less than 100 years ago. The term has different meanings, but it generally conveys that everyone has an opportunity to succeed. In the last century, that was epitomized by owning a home.
For many, a nightmare has replaced the dream and now presents daunting obstacles to healthy economic development. Some expect the situation to worsen before it improves. In some regions of the country, state and local governments and the public at large will continue to wrestle with how to make fundamental changes to zoning and land use practices that were put in place during the past 50 years and are exacerbating the crisis and curtailing private sector investments.
Case Studies: Putney, VT, and Post Falls, ID
The City of Putney used facilitated public workshops to craft a housing strategy with community buy-in.
Officials in Post Falls used market data to refine zoning policies, ensuring balanced growth.
6. Optimize Technology
Technology is positively disrupting all industries, including the economic development profession. Whether it is being used to do more with less capacity or to identify, engage, and attract businesses, forward-thinking EDOs are investing in software and DAaS (Data as a Service) platforms.
Today, communities are positioning themselves to attract new industries and investment more effectively by showcasing their competitive advantages and proactively engaging target companies — all in a more productive and cost-efficient manner. Much of this is due to AI-enabled websites that track users, utilize tools to employ precise digital marketing to target prospects, and pre-arrange meetings with screened leads to justify travel and facilitate relationship-building with potential investors.
Case Study: ProspectEngage™
Economic development organizations in Ohio, South Carolina, and Virginia are using ProspectEngage™ to identify and engage C-level prospects. These AI-driven targeting efforts, combined with LinkedIn, email, and phone outreach, are generating hundreds of leads.
7. Hit Your Targets Every Time
Understanding site availability and conditions is essential for attracting and growing target industries, particularly as businesses seek swift solutions to onshore operations and access talent pools. Regions with shovel-ready sites will have greater opportunities, forcing states to play a high-stakes game of musical chairs. Identifying growth sectors and economic opportunities that align with available sites is imperative to driving sustainable job creation and long-term revenue generation.
Case Study: Southeast Missouri
Four counties — Perry, Scott, Cape Girardeau, and New Madrid — recently partnered to assess regional assets, infrastructure, and growth potential, setting the stage for greater success with their targeted industry attraction efforts.
8. Unleash the Innovation and Power of Small Businesses
Resilient local economies foster small business growth and reduce barriers for startups. History shows that some of the most successful business enterprises were conceived during times of economic disruption. Reed Hastings found himself without a job after his company merged and laid off staff. He went on to form Netflix. Brian Chesky was a mid-level designer in a small firm during the Great Recession. His side hustle was to start a new business he called Airbnb. Both are now Fortune 500 companies.
People and whole communities have an amazing capacity for creativity and resolve to start anew and find success. It’s called entrepreneurship-led economic development.
Case Studies: Rhode Island and Hartford, CT
The Rhode Island Foundation supported marginalized entrepreneurs statewide by evaluating the secrets to their success and pinpointing barriers that could be removed.
Hartford’s neighborhood-based small businesses were able to navigate changing market conditions complicated by downtown development pressures and ensure growth instead of displacement and success instead of declining fortune.
The Future is Now
The rules of economic development are changing. The traditional playbook is no longer enough. Camoin Associates is committed to helping our clients navigate uncertainty and shape the future on their terms. Now is the time to rethink, reposition, step forward, and act.
Are you ready?
Contact us if you want to discuss the case studies or your situation. We’d love to hear from you! We can be reached at rcamoin@camoinassociates.com or dan@camoinassociates.com.
