In 2002, the Racine County Economic Development Corp., together with our development partners, completed the Racine County Economic Development Plan. Over the next several months, and with the help of The Journal Times, we will be reviewing the plan's challenges.

Today, we focus on Challenge 2 of the plan - the importance of technology and innovation relative to the growth of existing and the attracting of new business to Racine County. As you would expect, efforts to address this challenge are led by the RCEDC. I would like to focus on three aspects of meeting this challenge.

First, of all the plan's challenges, Challenge 2 is perhaps the most traditional. Ask most Racine County residents what economic development is and they would most likely respond "the attraction of new business." Unfortunately, the traditional means of attracting a business to Racine County - advertisements in magazines, calling on companies in areas like northern Illinois and other shotgun approaches, have proved ineffective.

Overall, the greatest opportunity to grow new jobs in Racine County is by working with existing employers. And, Racine County is in somewhat of an enviable position in this regard. While our manufacturing base suffers during recessions, these companies provide a unique opportunity for recovery as well. Racine County has more than 425 manufacturing companies - many of which will be well-positioned for growth as we emerge from the current economic downturn.

That's why the RCEDC has worked with our development partners to develop the Next Generation Manufacturing program. The program will be initiated in January 2010 and will include e-learning, in-person workshops and one-on-one technical assistance. Essentially, the NGM program includes assistance in six key areas:

1. Customer Focused Innovation. Investing in innovation and technology as a means to drive growth from new products and markets.

2. Advanced Talent Management. Strategies to attract develop and retain the talent necessary to win in a competitive world.

3. Systemic Continuous Improvement. Embracing systemic, continuous improvement as a means to sustain productivity gains.

4. Extended Enterprise Management. Skills in strategic partner and supplier relationship management as a means to increase production flexibility, leverage partner competencies and tap new markets.

5. Sustainable Products and Processes. Incorporating "green" in growth and operating strategies as a means to reduce waste and take advantage of the growing demand for sustainable products.

6. Global Engagement. Embracing exporting or partnering or establishing an overseas presence as a means to tap emerging and fast growing international markets.

While the growth of existing companies is critical to Racine County, we are also well- positioned to attract new companies as the "heart of the Chicago-Milwaukee Corridor." This corridor is one of the most populous in the world, and we see it as our best opportunity to attract companies that are relocating or expanding.

We already have the resources to attract these companies to Racine County. Communities and private developers have built new and/ or expanded existing business parks with a wide range of price points that are competitive across the region. Recently, transportation improvements, such as the widening of Highway 36, construction of the Burlington

bypass and the eventual reconstruction of Interstate 94, have added to the development potential of these business parks.

Once more, the construction of new buildings by private developers has provided an added bonus to our business attraction efforts. The availability of 630,000 square feet of developer-owned new manufacturing and distribution space gives Racine County an added edge in attracting new development.

What companies are we pursuing? Our DRIVE! Program - Developing Racine County Through Innovation, Vision and Entrepreneurship - has identified five manufacturing and four service industries that are, based on growth and labor force factors, good opportunities for Racine County. Once more, we have been working with several overseas countries to familiarize them with the opportunities in Racine County.

Finally, the RCEDC has worked to establish local business financing programs, as well as a working relationship with the Wisconsin Department of Commerce to access state resources for business growth. Incentives are critical to both the retention of existing companies, as well as the attraction of new companies. Without attention to providing these incentives to expanding businesses, Racine County will not be competitive with other communities in the region and across the country.

In order to access additional information on the business development programs identified above, contact RCEDC staff:

Gordy Kacala:

GKacala@RacineCountyEDC.org

(262) 898-7412;

Jenny Trick:

JTrick@RacineCountyEDC,org

(262) 898-7424;

or Carolyn Engel:

CEngel@RacineCountyEDC.org

(262) 898-7420.