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Elgin, Illinois works on plugging the leaks by Ed Morrison. 40503_32x32_thumb

Posted in Public, . Tagged with plugging the leaks, retail, strategy.

Elgin, Illinois is in the midst of implementing a comprehensive retail strategy. The key components of the strategy are laid out in an article here

One of the key components of retail strategy is to identify where the "leakage" is taking place in your economy. Retail leakage takes place when consumers shop outside your community or region. The stragey involves identifying these leaks and providfing retail alternatieves, so they will shop inside your economy.

Reducing retail leakage accelerates the velocity of money in your economy and increases, in the economists' term,  your "multiplier". 

There is another important principle at work here. By plugging the leaks you have an opportunity to enhance the local character of your economy. Local, independent retailers  build the personality of your economy and create the unique character that can serve as a magnet for outsiders.

Arguably, local retailers also have stronger ties to the local economy and enhance the multiplier effect. (This topic is controversial, beacuse it often touches on locating, recruiting and giving incentives to "big box" retailers. Here are a couple of websites that explore the issue: here and here.)

To learn more about plugging the "leaks" in your economy, check out this website from the UK.


Web Watch: GenGreen Network by Ed Morrison. 40503_32x32_thumb

Posted in Public, . Tagged with plugging the leaks, strategy, sustainability.

A new web site has launched that will provide information on "green vendors and service providers in 354 cities, green networking opportunities, and job listings at 'eco-conscious companies.'"

My guess is that sustainability will emerge as another important dimension along which "quality places" will be evaluated. As economic development morphs into a "war for talent", more and more EDPros will need to focus on sustainability to build what we once called "quality of life". 

Equally important, these strategies can potentially strengthen local and regional economies by accelerating the velocity of "local dollars" circulating in an economy. In China, you will hear some economists refer to the "circle economy". Strengthening local linkages in a way that promotes the reuse of resources can be an important local strategy. 

You can read more about  the site here

You can visit the site here


Plugging the leaks strategies by Ed Morrison. 40503_32x32_thumb

Posted in Public, . Tagged with plugging the leaks.

"Plugging the leaks" represents a solid economic development strategy designed to reduce the outflow of money from an economy. Periodically, EDPros launch these initiatives to increase local buying, but often they do not have any clear benchmarks or goals.

Here's an exception: a county that lies just to the west of Minneapolis has launched a "buy local" initiative that seeks to redirect 5% of the outside purchases back to businesses within the county. According to the local chamber, achieving that goal would reduce leakage by $42 million each year. Read more.

Here's a map of Willmar and Kandiyohi County:

In the years ahead we are likely to see more of these types of strategies in two particular areas: food and energy. We will see higher value agriculture emerging from strategies to build regional food systems. At the same time, we will start to see more regional energy systems, as regions move toward more sustainable energy sources and distributed power systems.

The you can learn more about "plugging the leaks" strategies from a web site in the United Kingdom. Learn more.

 

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