1/22/2018. P OLICOM Economic Analysis P OLICOM. More than 75 Jobs in Construction and other sectors. 63 Wholesale & Transportation Jobs

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1 1/22/28 Where the Money Is In the i Economy Presented by William H. Fruth POLICOM Corporation 2740 SW Martin Downs Blvd. #279 Palm City, FL fruth@policom.com Primary or contributory industries import money. Consumptive or dependent industries use and consume this money. Creates Another 425 Economic Impact 250 Job Manufacturer 45 Retail 45 Health Care 63 Wholesale & Transportation 38 Finance & Professional 43 Restaurant Hotel 0 Manufacturing More than 75 in Construction and other sectors Metropolitan Statistical Areas 383 Micropolitan Statistical Areas 550 Significant Economic Impact Community payrolls of more than $22 million. Money to support 525 households. Generates $2,2,0 in local government taxes. Creates more than $32,5,0 in taxable retail sales. Causes more than $7,5,0 in economic transactions within the community. P OLICOM CORPORATION Economic Analysis Everyone Understands 1

2 Bur net t Po lk St. Croi x Pi erce Pepin D ougl as Wash bur n Bar r on D unn Buf falo Bayfield Sawyer Chip pewa Eau C lai r Rus k Tr em peal eau La C rosse A shlan d Cl ark Jacks on Ver non Cr aw for d G r ant Tayl or Mon roe Pr ice Ri chl and Iron Io wa Woo d Juneau Lafayette Linc oln Mar at hon Adam s Sauk Vi las One ida Portag e Green Langl ade Waus har a Col um bia D ane For est Men ominee Waupaca M ar quet t e Green Lake Rock Shaw ano Winne bago Do dge Fl or ence Fo nd du L ac Jeferson Ou tag amie Walw or th Ma rinette Ocon to Calumet Wa shing ton Br ow n Manitow oc Sheb oygan Oza ukee Mil wau kee Wauke sha Rac i ne Ken osha Doo r Ke waun ee 1/22/28 Economic Strength The long term tendency for an area to consistently grow in both size and quality. 383 Metropolitan Areas 28 Ten Strongest Metropolitan Areas 1 Austin Round Rock, TX (MSA) 2 Napa, CA (MSA) 3 Seattle Tacoma, WA (MSA) 4 Nashville Davidson, TN (MSA) 5 San Jose Sunnyvale, CA (MSA) 6 Indianapolis Carmel, IN (MSA) 7 Dallas Fort Worth, TX (MSA) 8 Salt Lake City, UT (MSA) 9 Raleigh, NC (MSA) Denver Aurora, CO (MSA) 383 Metropolitan Areas 28 Ten Weakest Metropolitan Areas 374 Mansfield, OH (MSA) 375 Bay City, MI (MSA) 376 Danville, IL (MSA) 377 Parkersburg Vienna, WV (MSA) 378 Sebring, FL (MSA) 379 Anniston Oxford, AL (MSA) 380 Weirton Steubenville, WV OH (MSA) 381 Rocky Mount, NC (MSA) 382 Pine Bluff, AR (MSA) 383 Beckley, WV (MSA) 550 Micropolitan Areas 28 Ten Strongest Micropolitan Areas 1 Bozeman, MT (McrSA) 2 Lewisburg, PA (McrSA) 3 Truckee Grass Valley, CA (McrSA) 4 Traverse City, MI (McrSA) 5 Wooster, OH (McrSA) 6 Andrews, TX (McrSA) 7 Durango, CO (McrSA) 8 Edwards, CO (McrSA) 9 Kapaa, HI (McrSA) Dickinson, ND (McrSA) 550 Micropolitan Areas 28 Ten Weakest Micropolitan Areas Metropolitan Areas Oshkosh-Neenah, WI 541 Fitzgerald, GA (McrSA) 542 Las Vegas, NM (McrSA) 543 Bastrop, LA (McrSA) 544 Valley, AL (McrSA) 545 Indianola, MS (McrSA) 546 Espanola, NM (McrSA) 547 Clarksdale, MS (McrSA) 548 Raymondville, TX (McrSA) 549 Silver City, NM (McrSA) 550 Helena West Helena, AR (McrSA) Duluth, MN-WI Minneapolis- St. Paul- Bloomington, MN-WI Eau Claire, WI La Crosse, WI-MN Madison, WI Wausau, WI Janesville, WI Appleton, WI Green Bay, WI Fond du Lac, WI Sheboygan, WI Milwaukee- Waukesha - West Allis, WI Racine, WI Chicago-Naperville-Elgin, IL-IN-WI 2

3 1/22/28 Metropolitan Areas Micropolitan Areas 383 Metropolitan Areas Madison, WI (MSA) Green Bay, WI (MSA) Milwaukee Waukesha West Allis, WI (MSA) Oshkosh Neenah, WI (MSA) Appleton, WI (MSA) La Crosse Onalaska, WI MN (MSA) Eau Claire, WI (MSA) Sheboygan, WI (MSA) Wausau, WI (MSA) Fond du Lac, WI (MSA) Racine, WI (MSA) Duluth, MN WI (MSA) Janesville Beloit, WI (MSA) Merrill, WI Shawano, WI Bayfield D ougl as Menomonie, WI Iron Iron Mountain, MI-WI Ashland Vi las Wash burn Sawyer Bur net t Fl or ence One ida Pr ice For est Marinette, WI-MI Rusk Po lk Bar r on Ma ri net te Linc oln Langl ade Tayl or St. Croi x Chip pewa Men ominee D unn Ocon to Mar at hon Shaw ano Doo r Pi er ce Eau C lai r Cl ark P epi n Ke waun ee Woo d Portag e Waupaca Ou tag amie Buf falo Br ow n Jacks on Trem peal eau Waus hara Manitow oc Winne bago Adam s Calumet La Cro sse Marshfield- Rapids, WI Mon roe M ar quet t e Green Manitowoc, WI Juneau Lake Fo nd du Lac Sheb oygan Ver non Stevens Point, WI Col um bia Do dge Oza ukee Ri chl and Sauk Beaver Dam, WI Wa shing ton Baraboo, WI Cr aw ford Dane Jeferson Io wa Milwau kee Wauke sha G r ant Raci ne Laf ayet te Green Rock Walw or th Ken osha Platteville, WI Watertown -Fort Atkinson, WI Micropolitan Areas 550 Micropolitan Areas Baraboo, WI (McrSA) Whitewater Elkhorn, WI (McrSA) Stevens Point, WI (McrSA) Manitowoc, WI (McrSA) Watertown Fort Atkinson, WI (McrSA) Beaver Dam, WI (McrSA) Merrill, WI (McrSA) Iron Mountain, MI WI (McrSA) Platteville, WI (McrSA) Rapids Marshfield, WI (McrSA) Menomonie, WI (McrSA) Shawano, WI (McrSA) Marinette, WI MI (McrSA) Last Previous Growth Ranking Years Years 50 States Population Employment Earnings Annual Wages Number of NF Proprietors Per Capita Personal Income Per Capita Government Transfers Actual Amount 50 States 26 Rank Population 5,778,7 20 Annual Wages 52, Per Capita Personal Income 46, Per Capita Government Transfers 8,3 36 Per Capita Medicare 1,4 28 Per Capita Retire Trans 7,2 34 Per Capita Welfare Actual Per Capita Medicaid 1, Growth In Size 3

4 1/22/28 Madison MSA / Employment Factored 22 Employment Factored Texas West Virginia 8 Madison, WI MSA STR MET WK MET Eau Claire MSA 6/382 Janesville Beloit MSA 320/ Employment Factored 22 Employment Factored Eau Claire, WI MSA STR MET WK MET 8 Janesville Beloit, WI MSA STR MET WK MET Inflation Adjusted Earnings CPI Earnings Factored Texas West Virginia 4

5 1/22/28 Madison MSA /382 Eau Claire MSA 6/ CPI Earnings Factored 28 CPI Earnings Factored Madison, WI MSA STR MET WK MET 8 Eau Claire, WI MSA STR MET WK MET Janesville Beloit MSA 320/ CPI Earnings Factored Growth In Quality 8 Janesville Beloit, WI MSA STR MET WK MET % of USA Wages Percentage of National Wage 1% 0% % 80% 70% 60% 50% 40% Texas West Virginia 5

6 1/22/28 Madison MSA /382 Eau Claire MSA 6/382 0% 0% 1% 0% % 80% 70% 60% 50% 40% % of USA Wages Madison, WI MSA STR MET WK MET 0% 0% 1% 0% % 80% 70% 60% 50% 40% % of USA Wages Eau Claire, WI MSA STR MET WK MET Janesville Beloit MSA 320/382 % of USA Wages 0% 0% 1% 0% % 80% 70% 60% Inflation Factored dw Wages 50% 40% Janesville Beloit, WI MSA STR MET WK MET Madison MSA /382 CPI Factored Wages CPI Factored Wages Texas West Virginia 8 Madison, WI MSA STR MET WK MET 6

7 1/22/28 Eau Claire MSA 6/382 Janesville Beloit MSA 320/382 CPI Factored Wages CPI Factored Wages Eau Claire, WI MSA STR MET WK MET 8 Janesville Beloit, WI MSA STR MET WK MET Create more primary industry jobs which pay a wage higher than the area average wage. Wage Skill Ladder Characteristics Of Strong Local Economies Ten Characteristics 1. Diversified economies Multiple primary industries. 2. Geographic Location. 3. Geographic Economic Assets. 4. Cost Reduction Programs. 5. Multiple Transportation Systems Ten Characteristics 6. University Higher Education. 7. Aggressive, well financed economic development organization. 8. Available trained or trainable workforce. 9. Abundant supply of improved, approved industrial real estate.. Community wants it to happen. 7

8 1/22/28 Madison MSA /382 Communities have consistent economies when they have multiple primary industries. 30.0% 25.0% 20.0%.0%.0% 5.0% 0.0% Primary Industries - Percentage of Impact - Madison, WI MSA -26 State Gov Manu Whole Info Farm Trans Finance Construct Utilities Federal Military 50 Strongest Metropolitan Areas Weakest Metropolitan Areas Strongest Micropolitan Areas Weakest Micropolitan Areas

9 1/22/28 Geographic Economic Issues Geographic Economic Issues 1 Interstate Highway 2 Air Rail Access 3 Utilities Costs 4 Insurance 5 Property Taxes 6 Corporate Income Tax 7 Vl Value Added d Gross Receipts Tax 8 Personal Income Tax 9 Facility Costs Telecommunications Labor Costs Labor Reliability Health Care Costs Air Quality Seaport Business Incentives Types of Incentives Tax Abatement. Low Interest Loans. Grants or cash gifts. Discounts on land or buildings. Regulatory Relief. Creates Another 425 Significant Economic Impact 45 Retail Economic Impact 250 Job Manufacturer - $45,0 Average Wage 45 Health Care Community payrolls of more than $22 million. 63 Wholesale & Transportation Money to support 525 households. 38 Finance & Professional Generates $2,2,0 in local government taxes. 43 Restaurant Hotel 0 Manufacturing Creates more than $32,5,0 in taxable retail sales. More than 75 in Construction and other sectors Causes more than $7,5,0 in economic transactions within the community. Transportation Systems Interstate Highway Commercial Airport Rail Port 9

10 1/22/28 Transportation The more expedient the transportation system the further a producer can be located from its marketplace. 50 Strongest Micropolitan 50 Weakest Micropolitan 50 Strongest Weakest Micropolitan Area Of the 50 Strong/Weak Micros Strong Weak Located on an Interstate Located on 4 lane limited access. 5 Piece of 4 lane roadway in area. 0 Not located on 4 laned Higher education engaged in economic development. 1. Research University. 2. Four year with graduate studies. 3. Community College. 4. Technical School. Higher education 1. Commercialize research land, funding. 2. Joint efforts between private companies and university programs. 3. Access university assets labs, instructors. 4. Specialized training. 5. Incubator start-up center. 6. Curricula serving major industry sector. University of Enrollment 43,0 R&D Expenditures $1,170,0,0 6 companies in 37 buildings employing more than 3,5 people. University of Central Florida Enrollment 59,0 R&D Expenditures $1,0,0 221 companies in 59 buildings are located in the park employing more than,0 people.

11 1/22/28 Economic Development Program The process which improves the standard of living for the people who live and work in an area. Existing Industry Recruitment Start-Up Existing Industry Recruitment An Attraction Recruitment Program is constructed in a similar fashion to the marketing program of most businesses. The following are the steps taken: 1. Determine what you have to sell. 2. Identify who wants to buy what you have to sell. 3. Then, repeatedly, overall a long period, ask them to buy your product. Recruitment Start-Up Economic structure changing. Advanced manufacturing will grow over the next ten years.

12 1/22/28 2nd Most Important Issue. The availability of trained or trainable labor. Wage Skill Ladder Economic Development is ultimately ut ateya a real estate transaction. The most important issue relative to the site selection process is having an actual site. Absence of Land or Physical Build-Out Existing companies cannot expand in and new companies cannot locate to the area. Existing facilities, over time, will become unusable, and more companies will leave the area. The economy will stop growing and will begin to decline. Spirit Drive Commitment Cooperation Existing companies need to be encouraged, not berated. New companies need to be welcomed, not protested.