Economic Development Strategy Appendix I: 1
DATA CAVEATS Multiple sources, scales, and time periods Connect and triangulate, don t fixate This is sifted & simplified This is one of several City analyses going on 2
4 Topic Areas Schools Business & Industry Tax Base & Real Estate Demographics & Diversity 3
Madison has a Steadily Growing Economy In $,000,000s $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Madison MSA GDP ($m & %state) Madison MSA Madison MSA % of State GDP 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 18% 17% 16% 15% 14% 13% 12% 11% 10% SOURCES: Bureau of Economic Analysis 4
Metro Areas Drive Wisconsin Economy GDP by MSA Population by MSA Milwaukee Madison 15% Appleton Green Bay Rest of Wisconsin 10% SOURCES: Bureau of Economic Analysis, Census 5
Dane County Outperforms Wisconsin in Business & Job Creation 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% 7.7% Self employed 2000-2012 Change in Number of Businesses by Business Size (Employment) 10.2% 4.8% 4.4% 2-9 workers 2.1% 0.6% 0.0% 0.2% 10-99 workers 100-499 workers 3.0% -1.8% 500+ workers Dane County Wisconsin SOURCES: Youreconomy.com 6
Dane County Outperforms Wisconsin in Business & Job Creation 330,000 320,000 310,000 300,000 290,000 280,000 270,000 260,000 Total Jobs in Dane County 317,518 250,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 SOURCES: U.S. Bureau of Labor Statistics 7
Industry Clusters where we have Competitive Advantages MSA 2012 Clusters with LQs >1 2 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 1.8 1.67 1.57 1.35 1.26 1.16 1.11 1.09 SOURCES: EDA STATSAmerica 8
10,000 8,000 6,000 4,000 2,000 0-2,000-4,000 8,677 Growing Industry Clusters Innovation Cluster Growth 2001-2012 Job Creation/Loss by Cluster for MSA 7,287 4,470 2,772 (100) (696) (869) (1,509) SOURCES: EDA STATSAmerica 9
of all new jobs created in Dane County between 2001 & 2012 were primarily due to one company 10
Madison is a wellspring for innovation and new ideas that lead to new businesses Patents Issued in Dane County (# and % State) Dane County Patents 450 400 350 300 % of Wisconsin Patents Issued in Dane County 21% 373 22% 20% 18% 250 200 150 100 50 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 16% 14% 12% 10% SOURCES: U.S. Patent and Trademark Office 11
UW is #3 in Federal Research $2,500,000 Top 20 Institutions for Federal Research Spending (2012) $2,000,000 $1,500,000 $1,169,779 $1,000,000 $500,000 $0 SOURCES: National Science Foundation 12
in annual federal research dollars injected into our economy Can we do more to leverage this? massive investment into economic growth 13
We Are an Increasingly Globally-Engaged Economy Exports from the Madison MSA MSA export value Percent of State $2,500,000,000 9.50% $2,168,695,827 9.00% $2,000,000,000 8.50% $1,500,000,000 $1,000,000,000 $500,000,000 $0 $1,158,989,855 2005 2006 2007 2008 2009 2010 2011 2012 8.00% 7.50% 7.00% 6.50% 6.00% SOURCES: U.S. International Trade Administration (ITA) 14
The Madison MSA exported $2.2 Billion of goods & services in 2012 SOURCES: U.S. International Trade Administration (ITA) 15
Dane County Airport is becoming more busy - Madison is an increasingly-connected economy and growing origin and destination for business travel 900,000 800,000 700,000 600,000 500,000 400,000 300,000 675,034 Number of Passenger Boardings (Madison and the Median 100,000+ Airport) 518,671 783,937 603,357 825,702 558,141 Madison Median 200,000 2001 2007 2013 SOURCES: U.S. Department of Transportation 16
Dane County Airport is becoming more busy - Madison is an increasingly-connected economy and growing origin and destination for business travel % Change in Airport Boardings (2001-2013) 25% 22% 20% 15% 10% 12% 14% 5% 0% -5% 3% 3% -1% All Airports Madison Milwaukee O'Hare Minneapolis Detroit SOURCES: U.S. Department of Transportation 17
The Madison area is a Private Sector Driven Economy Madison MSA Wisconsin 1% 3% 8% 14% Local 10% 1% State Federal 76% Private Sector 85% SOURCES: Bureau of Labor Statistics 18
Job Projections by Occupation (2010-2020 DWD) Top 10 Growth Occupations for Dane County 3 2.5 2 1.5 1 0.5 0 Annual Growth Rate Employment Growth 8000 7000 6000 5000 4000 3000 2000 1000 0 SOURCES: WI Department of Workforce Development 19
Healthcare, technology, food, and construction are driving our job growth 3 2.5 2 1.5 1 0.5 0 8000 7000 6000 5000 4000 3000 2000 1000 0 SOURCES: WI Department of Workforce Development 20
Dane County as % of Wisconsin Madison is leading the State s economy forward SOURCES: Census, BLS, BEA, USPO, ITA, Census 21
Schools Business & Industry Tax Base & Real Estate Demographics & Diversity 22
Madison s economy has grown steadily over the last 30 years and growth is projected to continue Madison Population (1970-2040) 300,000 280,000 281,150 260,000 240,000 233,209 220,000 200,000 180,000 171,809 190,766 160,000 140,000 120,000 100,000 2040 2035 2030 2025 2020 2015 2010 2005 2000 1995 1990 1985 1980 1975 1970 SOURCES: Census, Wisconsin DOA projections 23
Madison is decreasing as a percentage of Dane County s total population 65% 60% Madison and Non-Madison - % of Dane County Population 1970, 59% 55% 2000, 49% 50% 45% 2015, 47% 2040, 46% Madison Rest of County 40% 35% 30% SOURCES: Census, Wisconsin DOA projections 24
Madison leads the State in attracting young professionals to Wisconsin SOURCES: Census 2000 and 2010 DC 25
Madison s Future is Much More Diverse Than its Past 6.0% 2000-2012 Annual Growth Rate 5.6% 5.0% 4.0% 3.0% 3.3% 3.6% 2.0% 1.7% 1.0% 0.7% 0.0% White, Non- Hispanic African American Hispanic/Latino Asian Other Race or Multi-Racial SOURCES: 2012 Census ACS 3-yr Est. 26
Madison has deep racial disparities in income 70,000 Median Household Income (2012 ACS) 60,000 50,000 40,000 30,000 20,000 White African American Hispanic/ Latino 10,000 0 U.S. Dane County Madison SOURCES: 2012 Census ACS 3-yr Est. 27
Madison s youth of color suffer from high poverty rates Poverty by Age/Race/Ethnicity (2012 ACS) White African American Asian Hispanic/Latino 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% little kid (0-11) teen (12-18) young adult (18-34) middle age (45-65) senior (65+) SOURCES: Census, 2012 ACS 3-yr EST. 28
20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% White Unemployment Rate U.S. Madison 2008 2009 2010 2011 2012 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% African American Unemployment Rate U.S. Madison 2008 2009 2010 2011 2012 SOURCES: Census, 2012 ACS 3-yr EST. 29
Schools Business & Industry Tax Base & Real Estate Demographics & Diversity 30
More and more of Madison s housing is within multi-family buildings 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% City of Madison Housing Units by Units in Building (2000 DC, 2012 ACS) 17% 20% 17% 17% 15% 15% 50% 47% 2000 2012 20+ units 5-20 units 2-5 units 1 unit SOURCES: Census, 2012 ACS 3-yr EST. 31
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Madison s home values have recovered from the recession and are rising Average Single Family Home Valuation $300,000 $254,593 $247,974 $250,000 $200,000 $150,000 $100,000 $50,000 $0 SOURCES: Madison Assessor s Office 32
Madison s post-recession real estate market is driven by new apartment building construction New Construction Added Value in $m Single Family Homes 800 700 Condos & 2-7 Unit Apartments Commercial & 8-unit+ apartments 600 500 400 300 200 100 0 SOURCES: Madison Assessor s Office 33
Madison s post-recession real estate market is driven by new apartment building construction 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% Post-Recession Percentage Change in Assessed Value by Housing Type (2010-2014) 1% -11% -5% 2% -3% -1% -4% 4% 7% 24% SOURCES: Madison Assessor s Office 34
Madison s post-recession real estate market is driven by new apartment building construction 450 400 350 300 250 200 150 100 50 0 Total Value of New Construction ($m) Commercial (including 8-unit+ apartments) Residential $141 $91 $92 $96 $251 $90 $131 $62 2010 2011 2012 2013 SOURCES: Madison Assessor s Office 35
Schools Business & Industry Tax Base & Real Estate Demographics & Diversity 36
Madison s schools perform well and are competitive with surrounding communities 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Advanced Placement Testing for HS (2011/12 School Year) Students taking AP exams % who pass 83% 83% 76% 72% 60% 63% 23% 22% 21% 11% 11% 9% Madison Beloit Janesville Middleton Sun Prairie Verona SOURCES: Wisconsin Dept. of Public Instruction 37
Madison s schools perform well and are competitive with surrounding communities Average ACT Scores: Madison: 24 Middleton: 25 Sun Prairie: 23 Verona: 23 State: 22 U.S: 21 SOURCES: Wisconsin Dept. of Public Instruction 38
Many of Madison s graduating HS seniors don t have a plan for their future we need more pathways Post Graduation Plans for MMSD Seniors (2012) 35% 56% 4-Year College Tech College Job, Military, Job Training Misc. 2% 7% SOURCES: Wisconsin Dept. of Public Instruction 39
Many of Madison s graduating HS seniors don t have a plan for their future we need more pathways 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 35% 30% 2% 6% 7% 10% 56% 53% Post Graduation Plans 9% 82% 2% 7% 29% 23% 43% 4% 10% 27% 59% 4% Misc. Job, Military, Job Training Tech College 4-Year College SOURCES: Wisconsin Dept. of Public Instruction 40
Madison s young people of color are particularly likely to graduate from high school without a plan for their future 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Post Graduation Plans for MMSD 2011/12 HS Graduates 27% 8% 66% Asian 51% 10% 38% African American 45% 7% 48% Hispanic/Latino 29% 5% 63% White % Misc. Job, Military, or Job Training % Voc/Tech College % 4-Year College 41
10 TAKEAWAYS FROM THE DATA ASSETS & OPPORTUNITIES 1. Madison is an Economic Engine for Wisconsin driving the state forward in job growth, business growth, and innovation 2. Madison s economy is becoming more private-sector driven most new jobs are in small businesses 3. We can do more to tap the UW as a driver of economic growth 4. Our high-growth sectors and future opportunities will come from intersections of biotechnology, information technology, food systems, and healthcare 5. Madison s economy is changing rapidly CONCERNS & CHALLENGES 1. We need a more diverse and growing tax base with development throughout the city 2. We need to monitor and support perimeter neighborhoods 3. The region s economy has become very reliant of EPIC for net new jobs growth 4. For our long term local economy to succeed, more of Madison s young people of color need to find pathways into the workforce 5. Madison needs to address racial disparities in income and opportunity 42