The New Face of for-profit Education

By Evan Robertson, Senior Project Associate

With mounting student debt and rising default rates, the U.S. Department of Education took significant steps to curtail what they viewed as one source of the problem: for-profit colleges. By restricting student loans to for-profit education institutions, many were forced to either close their doors or quickly curtail expansion plans. The case against for-profit colleges are many: for starters they tend to be far more expensive than their community college brethren and tend to be far less proactive in formulating new programs to align with business needs – when it comes to building a sustainable pipeline of talent, they are simply not at the table. The strong action against for-profit colleges would lead one to believe that the Department of Education has judged the for-profit education model as deeply flawed. It is curious, then, to come across this headline “Federal Student Loans Expand to Cover Some Coding Boot Camps.”

Coding boot camps have risen all across the country. Here in Atlanta there are many, ranging from General Assembly, a New York-based coding academy in Atlanta’s Ponce City Market to the Greenville based The Iron Yard. At many of these boot camps, tuition can be exorbitant. An immersive four-month course can easily run in excess of $10,000 dollars. Cheaper than tuition at a four-year university, more expensive than a two-year degree program at a community college. For those looking for a career change in a short amount of time coding academies can be an attractive option. Yet, they still suffer from the dubious placement rate practices that many for-profit colleges have used to inflate their numbers – most notably counting internship positions, excluding students kicked out of the program, and hiring students directly to work at their organization. 

Why might the Department of Education view coding academies positively while demonizing the practices of for-profit colleges? Coding boot camps have done well to align themselves with industry standards – many of their founders have deep roots to the very industry they are supporting. Moreover, the Department of Education is covering its bases – in order to qualify coding academies must partner with a traditional community college or university. Coding academies are new, reflecting the ever changing tech environment they serve. Only time will tell if coding academies are an effective means to addressing workforce sustainability in the nation’s technology sector or are plagued with the same ills as the very education model the Department of Education is trying to curtail.

Music to Macon’s Ears

By Alex Pearlstein, Principal and Vice President

Have you ever been on a cross-country (or cross-state) drive playing “radio roulette” every time you enter the airspace of a new community looking for something decent to listen to? (Note: I don’t have satellite radio and my CD player is broken, but still…) 

Then, every once in a while you come into a town that has a station playing awesome stuff; the disappointment is palpable when you lose the signal. Well, I’m happy to report that the city I live in, Macon, Georgia, now has one of those stations – no worry about driving out of its airspace. It’s called The Creek FM, a for-profit venture from three local Macon entrepreneurs. This is pretty rare in that most eclectic stations playing non-mainstream formats are not-for-profits that get money from multiple sources to survive. The Creek is a purposeful attempt to put American roots music on the radio and offer hyper-local, community-focused programming serving Macon and not Faceless Corporate Interests at HQ. Caveat: if this isn’t your type of music, you’d be less excited than I was upon The Creek’s debut.

So why is this news in an economic development blog? A couple reasons: First, music is deeply engrained in the fabric and culture of Macon, Georgia. A recent Washington Post profile detailed some of this history and opportunities for tourists to experience it first-hand. Second, I think economic development should be about identifying, capturing, and leveraging the niches that make your community unique; Macon truly can stake a claim to music as an economic driver. As evidence, there are multiple live music clubs here, the CVB’s slogan incorporates music, music tourism companies are able to stay in business, we have a killer annual music festival called Bragg Jam, and a cool new project is rescuing the world-famous former studios of Capricorn Records and turning it into a mixed-use development with a music incubator run by Mercer University. A VERY progressive local economic development organization – New Town Macon – is behind the Capricorn project, compiles a CD of local artists and is doing tons of cool stuff related to parks, bike/ped systems, events, and other capacity building.

Of course, a not-so-ancillary benefit of a thriving local music economy (in my humble opinion) is that you become more competitive for young talent. Just look at Austin (writ large) or Athens, Georgia (writ small) or any number of cities that have consistently drawn young people and you’ll probably find good-to-great capacity in the local music scene. It’s not a be-all-end-all – you need much more than a few good clubs to be a talent magnet. (A major public university helps.) But it’s a start.

Certainly, cultivating a successful music economy is extremely tough, especially translating live music into actual jobs. I learned that from working in Memphis and Nashville. Memphis has the music HISTORY but not the music ECONOMY of Nashville. Similar to film, in order to build a music cluster you not only need the performance spaces, but also the full universe of specialized professionals to produce the music, digitize and distribute it, license and promote it, manage bands and songwriters, etc. An army of accountants, lawyers, engineers, marketers, and other jobs with the very particular skills needed to support a music economy is what takes a live music scene and grows it into a thriving employment sector. A music entrepreneurship program doesn’t hurt either. With the proliferation of streaming music sites and new distribution technologies, the entire business of music has been turned on its head. So you better have some folks in town who understand this, or at least what’s needed to be competitive in the new landscape, to stand a chance to sustain a music cluster for the long term.

Which brings us back to Macon. We’ve definitely got a long way to go to take music from “there’s something in our water” to “there’s something in our economy.” But a solid first step is acknowledging that music is a job-creator and making significant, sustained investments in developing a music-based economy for the region. Some in Macon whisper that “old money” at times holds Macon back from reaching its full potential. Hopefully, long-standing Maconites will be okay with music talent and some tattoos and pierced noses frequenting our streets. If they’ve got cash in their pockets from their cool new jobs, I can’t imagine anyone will much care what color their hair is.

Milestone

By J Mac Holladay, President, CEO and Founder

Last month, I had a particularly tough travel week. I had six flights over a seven day period. In the middle of that poorly planned timeframe, I reached a milestone. I have now flown over 2 million miles on Delta Airlines. I don’t remember that very first flight, but it was probably sometime in 1972 when I started in this work at the Memphis Area Chamber of Commerce. 

Two million miles – enough to fly around the world at the equator more than 83 times. I have been very fortunate to travel the world both professionally and for pleasure. As a former naval Aviator, I am always aware of the type of aircraft I am flying in. There have been many from tiny twin engine propeller driven aircraft to giant 747s and 777’s. 

Oh, all the places I have been. They are from the smallest cities with air service like Watertown, South Dakota to capitols of the world like Johannesburg, South Africa, Tokyo, Paris, Quito, and Tel Aviv, Israel. 

I have been to almost every state in our country over all these years. Some great places like Austin, I have visited over and over for many years. I often say that every town is different. Not only is that true, but their airports are as well. The worst among the large airports is Minneapolis/St. Paul with an awful layout, no complete internal train or people mover system, and a full mile from the high end Delta gate to the last commuter flight gate. Northwest Arkansas and Lake Charles, Louisiana are among the best small airports. 

Decades ago, the airlines were required to serve communities of all sizes. They had to ask permission to abandon a route. Whether it was Macon, Georgia or Grand Island, Nebraska, they had regular air service. Once the FAA’s wings were clipped during the Reagan Administration, it has been a “free for all.” Communities have had to fight (and pay for) every seat with many now having no service at all. Who would have believed that we only have four primary airlines left in the United States? 

The cancellations and delays over all these years are too numerous to mention with the thousands of flight I have taken. At the same time, Delta has always gotten me there safely. Most of the time I have gotten to wherever I was going on time or just a bit late. 

Long ago, before the current SkyMiles program was around, I was a Delta Flying Colonel. We got special treatment and recognition on every flight. Back in the day, everyone dressed up to get on an airplane. Today, I still wear a sport coat on every flight. Now, I see people on every flight who appear to have come to airport after working in the yard or just getting out of bed.

One day, I will slow down and fly much less than I have these past 40 years or so, but not just yet. Maybe a few hundred thousand more miles to go……

ACCE Takeaways

By Ranada Robinson, Research Manager

Last month, I attended the ACCE Annual Convention in beautiful Savannah, GA. I had an enjoyable time with my Market Street colleagues, past and present clients, and with new friends who could trade stories of community efforts or data trends with me. My favorite part of the convention were the workshops. Here are some highlights of two of the most enlightening and engaging ones.

Promoting Business Growth with the Census Business Builder

Three U.S. Census Bureau staff members led this workshop. They walked us through how to use a couple of relatively new tools: the Small Business Edition and Regional Analyst Edition of Census Business Builder. 

• Census Business Builder: Small Business Edition: This tool was designed to help small business owners access the research they need to make smart decisions when opening a new business or expanding their existing business. A user can search by county, city, ZIP code, or neighborhood (Census tract). After selecting the geography of interest, the user can select from an array of useful data indicators, including demographics of potential customers (population, age dynamics, median household income, educational attainment, etc.) and information on consumer spending (total expenditures on housing, transportation, personal care products and services, etc.). At the city and county levels, economic data (number of other establishments in the sector of interest, number of employees, annual payroll, and total revenue) is also available. The tool is very user-friendly, and is very helpful in this focused context. The fact sheet for this tool can be found here.
• Census Business Builder: Regional Analyst Edition: This tool was developed specifically with chambers of commerce, regional planners, and economic development professionals in mind. The first awesome feature of this tool is the ability to create customized regions—you may select by city, county, ZIP code, or neighborhood, but you can also build a region of multiple counties. This is particularly useful because the geographies served by some regional chambers do not always line up with the OMB metropolitan statistical area (MSA) delineations. The same data available in the Small Business Edition is available in the Regional Analyst Edition, with some additions such as number of establishments by racial and ethnic group. This tool is, of course, free and can be of great use, particularly to chambers and EDOs that do not subscribe to proprietary data sources. Like the Small Business Edition, the tool is very easy to use. The handouts for this demo can be found here and here.

Inclusive Growth: Policy, Programs, and Progress

This workshop was moderated by Market Street’s CEO J. Mac Holladay and featured two dynamic panelists: Bob Morgan, CCE, President and CEO of the Charlotte (NC) Chamber and Courtney Ross, CEDO of the Nashville (TN) Area Chamber. The workshop’s focus was on the definition of an “inclusive economy,” how chambers can respond to negative actions by elected officials or even influence the political landscape, and how to measure success. Here are a few takeaways from the workshop.

Overview by Mac Holladay: Mac shared some national headlines related to race relations in the past year, including:

• “Baton Rouge police killings stoke racial tensions.” The Week. 29 July 2016
• “At Memorial for Charleston Shooting, a Call for ‘Meaningful Action’ on Guns.” The New York Times. 17 June 2016
• “City of Cleveland issues new policy following Tamir Rice EMS bill.” Fox 8 Cleveland. 12 February 2016

More and more, cities and regions are in the headlines for not so positive occurrences, and it impacts us not just on an emotional level, but also in a community’s ability to attract and maintain its residents and workforce. Mac spoke about his work as a chamber executive in Memphis, TN when he was tasked with helping with the integration of public schools. These social issues are indeed important to economic development, even though it’s not always apparent.

Mac also discussed the changing demographics of the nation, and how important it is to actively bridge the divides between not so diverse chamber leadership and other community decision makers and the growing diversity in communities. He cited the following examples of community initiatives dedicated to fostering diversity and inclusion:

• Montgomery, AL – Diversity Summit
• St. Louis, MO - St. Louis Business Diversity Initiative
• Sioux Falls, SD - Sioux Falls Diversity Council and the Multicultural Center
• Salt Lake City, UT - New Americans Task Force

Bob Morgan: Bob spoke about the Charlotte experience, including largely how North Carolina’s controversial HB 2 has impacted the business community. HB 2 blocks cities from allowing transgender individuals to use the public restroom corresponding to their gender identity. The Chamber has done much to embrace diversity of race, gender, age, and other categories, including the following programs:

• Charlotte Chamber Diversity and Talent Development Fund, which is the Chamber’s initiative to promote diversity and inclusion and develop diverse talent in the community
• Diversity and Inclusion Annual Report, which actually tracks the changing demographic in Charlotte-Mecklenburg County
• Diversity Partners and International Chambers, which partners with many organizations in and around Charlotte to work closely together on goals for improving the community
• Diversity in Charlotte, the Chamber’s publication that features minority-owned business and supplier diversity programs

Courtney Ross: Courtney walked us through the Nashville region’s changing workforce diversity and shared that sometimes it takes a deeper dive into the data to understand the differences in trends for various groups. For instance, a community’s unemployment rate can be competitive, but if you look at unemployment by race and ethnicity, some groups may have unemployment rates that are dismal. The Nashville Chamber is engaged in promoting diversity and inclusion in many ways, including the following:

• Education – closing the skills and educational attainment gap through programs such as the Middle Tennessee Skills Panels, the Lumina Community Partnership for Attainment Grant, and the Middle Tennessee Reconnect Community Grant.
• Transit – becoming cognizant of the ability of the workforce to commute to jobs even if they don’t own a car. The region is in the process of completing its RTA and MTA Strategic Plan. They are working to identify and secure a local funding source for regional transit so that they can break ground on the first rapid transit project by 2020.
• Public Policy – engaging public officials by publishing the Legislative Scorecard, which not only tracks votes that directly impacts the economy but, most recently, also votes that affect diversity and inclusion.

It is very important for chambers, regional planning organizations, and economic development professionals to understand that talent truly is the #1 issue vital to economic development. Increasingly, talent’s desire is to be in communities that embrace all people and allow everyone who moves there the opportunity to thrive and be successful. Chambers and EDOs are absolutely organizations that can make a positive difference in a community’s promotion and acceptance of diverse populations and the celebration of those populations.

This Week at the ACCE Annual Conference

By Kathy Young, Principal and COO

As the national economic development sponsor for ACCE, the Market Street team always looks forward to early August and the chance to reconnect with friends and clients from around the country. This year’s annual conference is in Savannah, Georgia, a city that is near and dear to me personally. My hometown, Brunswick, is an hour south from the community that some still call “the Hostess City of the South.” I have many family and friends there, and I wrote my Georgia Tech City Planning school entrance essay about General Oglethorpe’s plan for the city, which created the many beautiful squares that are enjoyed by residents and tourists alike.

With more than 1,000 Chamber professionals in Savannah for the week, there have been plenty of opportunities to enjoy the city and learn from its history. As always, ACCE works hard to integrate the host city with the conference agenda without distracting from the valuable workshops, think tanks, keynote presentations, and committee meetings that are scheduled throughout the week. Based on reports from the Market Street team (we have five staff members in attendance) and the social media coverage of the week, this year’s conference has once again provided quality networking opportunities, genuine learning and sharing, and inspiration. 

The vitality of the Chamber profession is evident everywhere you look during the conference, from the First Time Attendee gathering to the recognition of new Life Member honorees. The annual Certified Chamber Executive (CCE) breakfast was once again very well-attended and thought-provoking, as three very experienced Chamber professionals (Harvey Schmitt, Raymond Burns, and Kit Cramer) discussed the legacy of their work. Our CEO, Mac Holladay, moderated the panel following the recognition of the seven new CCEs.

This year the conference featured seven tracks – Leadership; Membership/Revenue/Events; Marketing/Communications; Economic/Community Development; Public Policy/Government Relations; Education/Workforce; and Diversity & Inclusion. Next week’s blog posting will feature more takeaways from various sessions – in the meantime, we want to thank Mac’s guest panelist’s for yesterday’s standing-room-only session on “Inclusive Growth: Policy, Programs, and Progress.” Bob Morgan, President and CEO of the Charlotte Chamber and Courtney Ross, Chief Economic Development Officer for the Nashville Area Chamber were gracious with their time and engaged the attendees. We’re looking forward to Market Street VP Matt Tarleton’s afternoon session on “Attracting and Keeping Millennial Talent,” which will also feature Kate Atwood from the Metro Atlanta Chamber; Shannon Full from the Fox Cities Chamber; and Shannon Hoeg, Chair of the South Shore Chamber’s Young Professionals group.

And finally, I have to give a huge shout out to the ACCE team for expanding the conference app features (with partners at The DoubleDutch Team). For the first time in nearly a decade, I was unable to attend the conference at the last minute. I had already downloaded the app and began using it before my plans were cancelled, so I’ve kept it close all week to follow from afar.

While a lot of session highlights are being shared on Twitter, the conference app has a much more personal feel. Chamber professionals have embraced the app this year, posting photos, key takeaways, and using it to connect with their colleagues from around the country. It also seemed to help fight off the boredom experienced by many during travel delays earlier this week (thank goodness Delta is getting back to normal!).

Even though the app is intended for actual conference attendees, not “observers” like me, I think my app usage and experience reinforces the value of online learning and social networking. In this case, it’s a consolation activity that is helping offset the fact that I can’t be there in person, but there are plenty of chamber professionals who simply can’t accommodate the days away for scheduling or resources reasons.

For anyone out there reading and wondering if they should download the app… it’s not too late to follow along with ACCE. Maybe next year there will be a new category of “virtual attendees” along with the 1,000+ actual attendees!

Check out convention.acce.org for more.

Best Practices and Issues: Back to School Edition

By Kathy Young, Principal and COO

Hard to believe, but students around the country will be heading back to school soon. In many communities, teachers and administrators are already deep into their planning work and preparing for the coming academic year. To celebrate this annual transition, we’re highlighting a few best practices and issues as we reflect on the critical connection between education and economic development.

In a blog post earlier this year, I shared information about a good resource for hands-on learning at the elementary school level, sponsored by Junior Achievement (JA), an organization that has been around for 97 years and has a global reach. Later in the spring I also participated in the “JA Day” at my daughter’s school, which was similar to the program described here. The morning session provided students with the opportunity to learn key business and economic concepts from business community volunteers (who are also often parents). JA provides all of the materials (featured in the photo below), but the volunteers are empowered to deliver the curriculum directly, with only classroom management support from the teacher. 

The experience is rewarding for volunteers and a treat for the students. Teachers have some time to spend on planning, and the school strengthens its relationship with the community. And for those of us with no teaching experience, working with a class of 20 elementary school students was an intense experience. Many schools have guest reader or Principal for a Day programs – which help connect students to business representatives and role models. Those programs give participants a glimpse into the challenges and opportunities that come with public education as well. But if you’d really like to understand the job of a teacher, you literally need to walk a mile in their shoes. Four hours in the classroom only scratches the surface of course, but if you would like to help your community leaders understand some of the educational issues in your schools, developing a partnership with JA might start some great conversations.

One of our client communities in Alabama (Decatur-Morgan County) has been having some fascinating dialogues about education and workforce training for more than a decade, thanks to the launch of the Summer Welding & Electrical Technology (SWeETy) Camp for 9th – 12th grade young ladies from local schools. Hosted by the Decatur-Morgan County Chamber of Commerce and education partners, the camp’s goal is to offer young women an opportunity to learn hands-on about technical skills that can lead to high-paying, satisfying careers in high growth industries. 

Not far away, in Carroll County, Georgia, one of the community’s business leaders, Southwire, developed the cooperative 12 for Life program with the school system in 2007. The program is intended to provide “students a place where they can mix classroom time with time on the floor at a real manufacturing plant, gaining an education, a paycheck, key work and life skills, and the all-important hope—for a diploma, for success in the workplace, and for a better life.” 12 for Life has received national media attention and continues to maintain a focused approach to the initial goals of 2007.

My colleague, Ranada Robinson has shared many other best practices and updates from education field, including takeaways from the 2015 Associated Builders and Contractors, Inc. (ABC) Workforce Week Conference, where she presented this past March, and a webinar that shared research regarding school takeovers by state governments. Stay tuned for more updates about education best practices, trends, and issues that could impact your community.

As August beings, we wish the best to our communities as they transition back into the school year, and look forward to featuring some of the businesses and community leaders that are making education a priority and strengthening the economic and workforce development partnerships that are vital to success.

Immigration and Economic Development

By Ranada Robinson, Research Manager

Yesterday, Market Street participated in the ACCE webinar entitled Immigration and Economic Development: A Regional Approach. It was moderated by Kate Brick with the Partnership for a New American Economy. This bi-partisan organization is dedicated to changing the discussion on immigration to include why making sure immigrants are successful should be a priority in economic development efforts. Contrary to many of the negative stereotypes circulating in the media about immigrants and erecting walls to keep them out, immigrants and foreign-born residents continue to make a significant impact on this nation. During the webinar, Ms. Brick shared these statistics:

• Immigrants make up roughly 13 percent of the nation’s population but started 28 percent of all new US businesses in 2011.
• Over 40 percent of Fortune 500 businesses were started by immigrants or their children.
• These companies employ over 10 million workers globally.
• Immigrants are over-represented in Science, Technology, Engineering, and Math employment and are more likely to study in STEM fields than native born Americans.

The webinar featured two speakers: Jason Mathis, Executive Vice President of the Salt Lake Chamber, and Mary Bontrager, Executive Vice President of Regional Workforce Development and Education at the Greater Des Moines Partnership. Here are just a few of the ways these communities and a couple others that were highlighted during the webinar are welcoming and embracing immigrants and their entrepreneurial pursuits.

Salt Lake City, Utah – New Americans Task Force

In 2011, the Utah legislature passed a bill that allows illegal immigrants to apply for a guest worker permit if they pay a fine for being in the country illegally. However, the bill has been highly contested. The program start date has been pushed back over the years, and since the state has not obtained a federal waiver to ensure its constitutionality, lawmakers are now contemplating the law’s repeal. Proponents of the law maintain that it is vital to ensuring that Utah has a strong workforce, particularly in agricultural occupations.

Most recently, the Salt Lake County Government and the Salt Lake Chamber have joined together to launch a New Americans Task Force that includes over 60 private sector, government, and community leaders. Its goal is to develop policy recommendations to make the area more competitive for international talent and business, including supporting proposed reforms to streamline immigration policies. 

According to Immigrant Business, in 2014, immigrants contributed $8 billion to Salt Lake County’s economy. Additionally, from 2009 to 2014, foreign-born population growth in the county has outpaced overall population growth by nearly 15 percentage points. 

Des Moines, Iowa – Immigration Initiative

In 2011, leaders from throughout Central Iowa engaged Market Street to facilitate a dynamic strategic planning process that would become known as Capital Crossroads. The strategy resulted in ten focus areas called “capitals”—one of these is the Social Capital, which encapsulates leadership development, diversity and inclusion initiatives, and community capacity and civility. One of the most aggressive implementation efforts that Market Street has seen in its 19-year history, Capital Crossroads leaders immediately established work groups and have begun many of the initiatives that were recommended in the strategy. In 2015, the Greater Des Moines Partnership announced the launch of the Des Moines Immigration Initiative, which intends to develop policy recommendations to increase and support Des Moines’ immigrant workforce and advocate at the local, state, and federal levels. 

Cincinnati, Ohio – Mayor Cranley’s Task Force on Immigration

In 2014, Cincinnati Mayor John Cranley launched a Task Force on Immigration to develop recommendations to make the city more immigrant-friendly. The Task Force included business leaders, workforce representatives, faith leaders, and representatives of local service organizations and was divided into five subcommittees: education and talent retention, rights and safety, economic development, international attractiveness, and resources and development. In 2015, the Task Force released its report, which includes 14 short-term recommendations and 9 long-term recommendations. One of its major recommendations is the creation of a Center for New Cincinnatians that will require the involvement of many key partners, including the City, the Cincinnati USA Regional Chamber, and the University of Cincinnati. The goal of the center is to easily link immigrants with services, both online and via a physical space.

According to the webinar, five percent of Cincinnati’s population is foreign-born, and 8 percent of business owners are foreign-born. In fact 21 percent of the city’s Main Street business owners are immigrants, evidence that immigrants are vitally important to the economy.

Louisville, Kentucky – Global Louisville

Louisville Mayor Greg Fischer announced in 2015 a new public-private partnership aimed at attracting and retaining skilled immigrant workers and increasing Louisville’s global presence. Global Louisville is supported by the Metro Louisville government and Greater Louisville Inc., the regional chamber of commerce. The nonprofit will work on developing ways to retain students who are on temporary visas, increasing foreign student enrollment, and assisting immigrants looking for employment. This supports one of the goals in the 2014 Advantage Louisville Strategy, facilitated by Market Street: Cultivate Greater Louisville’s Diverse Talent.

According to Global Louisville, 5 percent of the population are foreign-born as are 5.1 percent of the employed workforce. However, immigrants are overrepresented in several areas: they make up 7.5 percent of all STEM workers, 12.9 percent of professional and business services employees, 15.3 percent of art, entertainment, and hospitality employees, 18.2 percent of workers in manufacturing, and 18.5 percent of education and health employees.

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It is clear that ignoring immigration or even fighting immigration would be detrimental to the American economy—particularly when the concept of America was based on providing an asylum and new way of life for immigrants. Statistics show that it is untrue that immigrants are a drain on our economy—when “new Americans” are given a chance to thrive, they truly do, through filling workforce gaps and starting businesses. 

Evident across the country in our client communities is the desire to leverage the increasing diversity, not dampen it. What makes America great is the strengths, skills, knowledge, and perspectives of all of the diverse talent present in this country. Our differences make us better—we’re able to accomplish more together celebrating these differences than as a monolithic unit. It is important that communities continue working hard to develop strategies to embrace and support the workforce, including immigrants.