Episode 20 | LIVE from the SEDC Annual Conference in Williamsburg | Edward Burch & Cyndi Dancy

Hello SCDC members and welcome to the 2023 annual SCDC conference held here in beautiful Williamsburg, Virginia. Hi, I'm Ray Methven with Insightful and the truth is while Matt Matthew weren't looking, I hijacked the podcast again. So you have the next few days with me and with a lineup of guests I'm really excited about. We'll have conversations with community leaders, state leaders, really good vendors we love. So stay tuned and join us. Good questions coming up. And we're here with Edward Birch with the Tennessee Department of Economic and Community Development. Edward is the director of business development. He's just come off stage with a really wonderful, wonderful presentation for our conference attendees here. Edward, welcome to the podcast. Thank you for having me, Ray. This is really cool. As I mentioned, you had a wonderful presentation and I'd like, but first you have a really interesting back story. Let's talk about what got you to Tennessee and what got you to economic development. Well, okay, so what got me to Tennessee is my mom is a Nashville native, Judy Birch. And just always loved Tennessee. I always felt connected to Tennessee even though I'm from the Midwest originally. Just from the time I was about a teenager, I said, okay, I gotta do whatever I can to get to the volunteer state because that's just where I felt this bond, this connection to. But when I was getting started in my career, I was wanting to be a newsman. I was a TV news reporter and wanted to, that's what I wanted to do. I ended up making stops in St. Joseph, Missouri, Birmingham, Alabama. That's where I met my wife. Worked down there for five years, but my goal was always to get to Nashville. That was kind of my destination market when I was working in television. Wow. It took a lot of time, took some rejection along the way, but finally got a job up there. And as I was working in television in Nashville and really kind of in that dream market and place that I wanted to be, I was also looking for something just a little bit more. And as I kind of thought about, well, what is it that Edward Birch likes to do as a reporter? Well, I love storytelling. I love the people engagement, I love being a facilitator and helping people solve problems. And I definitely love talking about Tennessee. So what careers kind of translate to that? And as I started hearing about economic development, I started to meet people in economic development and they were all so encouraging. They all said, we gotta get you on board and I just said, okay, I'm sold and I reached out to the State Tennessee Department of Economic and Community Development to just continue to network. And a few months later, I ended up having a whole new career, a life changing career that's been for the better. And it's just been so awesome. We had some great friends made along the way, some wonderful projects that I've gotten to work. And certainly a lot of challenges too. We are problem solvers in economic development and I've encountered so many people that want to row in the same direction. We put our heads together. We try to overcome, no is not really an answer. You know what I mean? Sometimes it has to be, you know, when you just have exhausted all your options, but you don't get to that point until you do. Dealing with rejection and how to turn that into a positive, your life experiences prepared you. You gotta be an eternal optimist. That's me, I just, I love trying to find the positives. And I love, you know, the storytelling. That's part of what I was doing for 10 years, but more economic development and these projects, they all have a story. Every company that we recruit has a story. Tennessee has a story and the community's inside of it. So when you're talking about such an awesome place like Tennessee, you truly believe in the product that you're putting in front of your client and trying to get them to come to your state. And there's just so many things that we can talk about that make Tennessee the best place to do business. And it's the best job I couldn't imagine doing anything else. That's great. We're talking with Edward Birch with the Tennessee Department of Economic and Community Development. Edward, this is a good pivot point now. Share with our listeners some of what you shared with your presentation today. So we talked about how the sandwich is made. And it had to do with an 840 job project that located in Cleveland, Tennessee. And I associate John Longshore with Newmark Consulting. He really kind of went into the meat and potatoes of what goes through a site selection process when they're getting dozens of submissions to their request for proposal. And how do they kind of shortlist it down? And what maybe are some of the drivers? In this case, it was really workforce was a big factor. The company was looking to expand its operations in a little bit more of a southeast East Coast market. But again, 840 jobs in a tight labor market and presented its own set of challenges. So the communities that had the site that kind of checked a lot of the boxes but also then could show the workforce that they had and to be able to tap into was huge. So during the presentation, we really did kind of talk about what were some of the things the community did to set itself apart. It also had to do with an incredible center called the Pi Center, its partnerships and industrial education and innovation. And just this facility that was being built while we were actually taking the company on site as it's in Cleveland. And it basically was a one-stop shop where they had, K through 12, they had career and technical. They had a facility that could be able to use for hiring events and community engagement. And there were just a lot of things that this Pi Center offered and kind of the company could see the vision of, well, this isn't open yet, it's still a construction site. But what they're doing here is so unique and it's going to be able to help us when we're trying to be able to build that 840 job. Workforce, including office space and training space in the same facility. So that was huge and that was a big part of what we talked about today. Much, you know, we also talked about the collaboration. And I know that's something you and I have talked about in great detail. It's the key to anybody that works in economic development. You have to be able to collaborate. And in this project, it truly was so many people in the community that came together. They minimized the risk for the clients. They made them feel at home. There was just that the warm and fuzzies. And I'm a big proponent of the intangibles of a project and just the feel of a community. And when you're with those clients and just really getting a gauge of, do they feel at home? Do this place make them happy? Because ultimately, they have to be able to love where they are because that's the way they're going to have success. And I really want to reinforce that because in our earlier conversation, you said those words and they really had an impact on me. So I typed them out and I want to say them again, intangibles and collaborations. Intangibles and collaboration. Sounds like a book title. It sounds like a book title, but it's a book of success. It's a book of success. It really is a blueprint. And companies will always look at the bottom line. They're always going to be able to say, OK, how many of these things are checks in the plus column or how's this going to impact our balance sheet? And truly, the cost of everything is such a big driver. Workforce is always going to be a big driver. But I tell you, I've seen several projects locate where there may be a few boxes that didn't get checked as far as the cost are concerned or workforce is still a big thing, but it's the field of the community. And I have one of my communities in Tennessee that would say, we like to do business with people that we know like and trust. And it's like, when you're there with them, having dinner, you're talking with them about family, you're talking about education, the true things that connect us all and just being able to get that feel of like, man, this already feels like home. That is huge. And I'm a firm believer in that. And that companies have to get that feeling. And I think they get it. Any company that we're recruiting in Tennessee, they get that feeling. And that's why I think we have such great success. In addition to some great economic developers who make them feel that way. Exactly. Now, share with me because I know beyond the presentation example that you built on, there are some other hot sectors in Tennessee right now. Share some of your hot spots. So goodness, I think it all starts with EV. When it comes to the EV supply chain, battery technologies, just a lot in that sector right now. Obviously with blue oval city locating in West Tennessee, bringing 6,000 jobs along with SK innovation. Those suppliers are starting to jockey for position in Tennessee. We saw magnet locating as one of the big suppliers for Ford and Blue oval city in West Tennessee and in Lawrenceburg and Southern Middle Tennessee. But that's truly where we are seeing the most project activity right now. Yes. And the battery materials too. I located 6K Energy, which they are a cathode manufacturer to Jackson, Tennessee. Again, it's that ecosystem in the EV space where everybody wants to be close to those big EV companies and the suppliers that are going out there. Beyond that, Tennessee is doing some great things in the clean tech in the energy sector. Obviously we have a lot going toward nuclear right now, including Governor Bill Lee signed an executive order, executive order 101. And that's basically bump up and create our nuclear energy advisory council. Lots of collaboration that's going on there right now. And that's really the future of energy in Tennessee and TBA is doing some awesome things right now with that. Food and beverage is a sector that I work a lot of projects in and that's what the project we talked about today was SK. That was a food and beverage project. They make breakfast sandwiches that they're sold at a very popular chain store that probably people would know. And I also do a lot in ceramic tile. Which you may not know this, but most of the ball clay that is mined to make ceramic tile in the US comes from the state of Tennessee. Really? So in West Tennessee, they have these ball clay mines, which is one of the key ingredients in ceramic tile. And that is an industry where we have so many Italian companies that are located in there that they wanted access to that raw material. And also the felt spar that they're brought in and brought in from Turkey, but they have terminals in North Carolina. And so Tennessee is, again, strategically placed right in the middle of all that. You got to be lucky and good, but ceramic tiles in other industry that we're seeing a lot of interest in. But I tell you, it's advanced manufacturing is what it all goes back to. I mean, we are seeing an enormous amount of skill sets and companies that are looking for that highly skilled, highly trained workforce. We're seeing more capital investment in these projects. Great wages with these projects. And again, wonderful resources that are being put towards the training of those, including an additional billion dollars in the governor's budget to go toward our career and technical schools to be able to facilitate and expand, because they're bursting at the seams right now. Wow, wow. Let me ask you for, since our SCDC members span 17 different states in the South, what are some key takeaways that you would share with our economic developers no matter what state they're in for success? Oh, well, as we said, I think you don't underestimate the intangibles and again, the feel of everything. A project activity is still just so strong right now. And I think that workforce, the states that show their workforce is going to be able to have success. And we're seeing companies that maybe are slowing down their decision making process for a variety of reasons, but then there are others that are quickly and needing to act quickly right now. So I would just say that really being able to position yourself from a workforce standpoint is huge. Those are the states that are going to win. And we believe that Tennessee is position best in the Southeast from our workforce capabilities. The other resources that we have to be able to attract these companies here as well. We have a great energy story with our partners at TBA as well. So I just think it's the best place to be from an economic development standpoint and to live, work and play in Tennessee, there's just nothing like it. Absolutely, absolutely. We're talking with Edward Birch. He's the director of business development of the Tennessee Department of Economic and Community Development. Edward always likes to close out with a few questions. Sure. So today, let's play favorites. Okay. Edward, what is your favorite holiday? Thanksgiving. Thanksgiving. What is your favorite dessert? Chocolate cake. No, okay. Or yellow cake with chocolate, so how about that? There you go. There we go. What is your favorite movie? Favorite movie is Jaws. Okay. And now this will say something about you. What is your favorite karaoke song? Oh, man. I wasn't expecting any of these. These are some good rapid-fire questions. One that I can actually sing. I actually, oh, here's one. How about life in the fast lane by the egos? Absolutely. Are you willing to share a couple of bars? Oh, man. He was a hot-edded man. He was brewed and he had some. Yes, Edward Birch was. All right, last question. And this is going to be tough for a former newsman. Okay, let's hear it. What is the worst haircut you ever had? One time I had my head shaved when I was a freshman in high school playing football, but that was pretty bad. I do not have the skull for it. Edward, thank you so much for spending some time with us. It's so great to have you at SEDC. Folks, we've been talking to Edward Birch, but the Tennessee Department of Economic Community Development, Edward, have a great rest of the conference. Thanks, Ray. Appreciate it. Thank you. Folks, we are joined by Cindy Dansey with Garner Economics. Cindy is the Chief Research Officer at Garner Economics. Cindy, thank you so much for joining us. Thanks for having me. Oh, yeah, this is exciting. Cindy, tell our SEDC listeners about Garner Economics to scribe this force. Great, I would love to. Garner Economics is a boutique economic development company, we work on doing strategies, we work on target industry studies, and we also do site selection for a variety of clients. Garner, the founder, has a specialty in food manufacturing, but we also cover a lot of other manufacturing and distribution companies as well. Okay, now you are the Chief Research Officer. What does that really mean? That means I'm the one that deals with all of the data and the numbers, but no economic development research is something that I've been doing for a while. I really like it, and then this day and age of data analytics, so many people have started to really lean into what the numbers say, and what I try and do for everything that we get involved in is how the numbers tell a story. What does the data say? How does that lead us to some of the recommendations that we make, and what does that say about the community? What does the number, what stories do the numbers tell? That's interesting, because data can be so intimidating, and there is no end to the granularity of the data that you can pull. How do you make a determination or what makes the cut and what doesn't make the cut? How does Cindy start telling that story? Well, you know, there is a lot of data out there, and it can be very overwhelming. So what we try and do is go to sources that I know and trust, a lot of federal sources, government sources, but then there's also a lot of companies that have been working hard at producing the data, and then companies that model on that data. For instance, the Chimera economics and their jobs EQ, and of course, Lightcast and other third party resources that do modeling on data. So we really try and work with trusted data because you can put anything on the internet. Right. There can be a virtual Wikipedia of things that people think and have made up. And so really working with some trusted resources and really verifying it and seeing if that story rings true with some other data that you might have, or in some cases, original research that's on the ground. Does that really line up with what we're seeing? Okay, that's interesting because it sounds like don't just trust verify. Make sure there's a second source that agrees with the data that you're seeing. Yes, for some, particularly when we're seeing a story that is going to be a basis for some recommendations. There's all kinds of errors here, and even federal sources I've seen, they go back, you know, Bureau of Labor Statistics, they go back and they do adjustments. So there's always some adjustments happening and fine tuning, so to speak. Sure. As it goes through, but yeah, verify where you can. That's interesting. We're talking with Cindy Dancy of Garner Economics. Cindy, give us some insights as SCDC members. What's the next 12, 24, 36 months going to look like? What should we be looking for? Well, most people that I've spoken with in the south in the southern states that are members of SCDC really have kept it being busy. Project activity is still very high. Relocations are still happening. People are still thinking about that. In fact, I've heard some economists say, you know, I'm not really sure that we're going to have a recession. So again, it's economist, and as we heard this morning, you know, it's a gamble with what they say. But I think activity is still good. So we'll still see projects going. We'll still see people moving forward. There is still a lot of money from federal sources on being able to look at planning, being able to develop and make plans to do so with economic development organizations. How are you going to move the needle? And then also I see some groups that are dealing with ancillary things, and I'm sorry if I said that. That's one of those words I guess I shouldn't have attempted. But things that deal with barriers to getting to where they need to go in as far as site development, talent development, talent recruitment. And so the economic development arena with what local groups are doing has kind of broadened a little bit about what they're having to deal with from possible housing and how they work with partners, training, workforce development, all of those types of things. Okay, very interesting. We're speaking with Cindy Dancy of Garner Economics. Cindy, if for our listeners across our 17 SCDC states, what are a couple of key takeaways that you would say before you do anything else, make sure you have these? I would say make sure you have good data. Make sure you have looked at the numbers. Make sure that or go to somebody that can help you get them, help you put them into a story. Get them along with the expertise of a longtime economic development practitioner or consultant to really get that into telling the picture. I mean, you need some good facts for you to base decisions on moving forward. We're speaking with Cindy Dancy. Cindy Garner Economics has been such a foundation partner for SCDC for a while. It's fun to be with you. It's fun to be with Jay. We really appreciate the fact that you're here. Before you go, can I ask you a handful of really piercing questions? Okay, I'll do my best. We're going to play favorites today. What is your favorite holiday? Christmas. Christmas without a doubt. Cindy, what is your favorite dessert? Oh, that one is tough. I would say that it is probably chocolate turtle dessert. Oh, okay. Any kind of whatever form that takes? As long as it has pecans, caramel and chocolate, I think I'm happy. I get it. I get it. What is your favorite movie? That is another tough one. It used to be the classic, a room with a view. Yeah. It's a really good cinematography and a great story. So, yeah, I think I'll stick with that one. Good. Hi, I can. Now, Cindy, what is your favorite karaoke song? You know, I'll have to go a little bit. You know, we are in the South here. So, it's the David Allen Coe song. I think that we call it that. You don't call me by my name. You don't call me by my name. That's right. That's a good one. That's a good one. I have one more question for you. And this is not a favorite, but Cindy, what is the worst haircut you ever had? I think I'll have to go back to the 80s where I had a perm and a very short haircut at the same time. It was not a good thing to have pictures of. Nice. Cindy Dancy with Garner Economics. Thank you so much for spending a few minutes with us. Thank you for being here at the SEDC conference. It's great to spend a few minutes with you. Let's talk some more. Wonderful. Thanks again for having me. Thank you.