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HomeMy WebLinkAboutResolution 78-23RECORD OF RESOLUTIONS GOVERNMENT FORMS. & SUPPLIES 844.224.3338 FORM NO 30045. 78-23 Resolution No Passed , 20 ADOPTING THE 2023 ECONOMIC DEVELOPMENT STRATEGIC PLAN UPDATE WHEREAS, Dublin City Council has established the development and implementation of an economic development plan as one of its highest priorities; and WHEREAS, the City has commissioned the firm of TEConomy Partners LLC to conduct quantitative and qualitative research and work to prepare a strategic plan update; and WHEREAS, the City has commissioned the firm of Newmark & Company Real Estate, Inc., dba Newmark, to conduct a semiconductor supply chain positioning study; and WHEREAS, the elements of this strategy update were determined after research, review and input from staff, community and business leaders, real estate brokers and developers, and Dublin City Council; and WHEREAS, the adoption of the strategic plan update is important to enhancing the quality of life and economic vitality of the City. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Dublin, State of Ohio, .__ of its elected members concurring, that: Section 1. The Economic Development Strategic Plan as prepared by TEConomy Partners LLC and Newmark & Company Real Estate, Inc., dba Newmark, be, and hereby is, adopted. Section 2. The City of Dublin hereby adopts the concepts and desired objectives contained within the strategy document. The City will evaluate and consider the strategy and action statements contained therein for possible modification of City regulations, procedures, or implementation strategies. Section 3. This Resolution is effective upon passage in accordance with Section 4.04(a) of the Dublin City Charter. Passed this 230 day of Ohdohe , 2023. YX Mayor — Presiding Officer : ATTEST: tne To: Members of Dublin City Council From: Megan D. O’Callaghan, City Manager Date: October 17, 2023 Initiated By: Jeremiah Gracia, Economic Development Director Jenna Goehring, Economic Development Administrator Kirby Dearth, Economic Development Administrator Mitch Ament, Management Analyst Kendel L. Blake, Management Analyst Re: Resolution 78–23 – Adopting the 2023 Economic Development Strategic Plan Update Summary Dublin’s economic success continues to reinforce the conclusion that Dublin must act strategically by investing in new initiatives that leverage historical advantages into a new generation of economic development activity aligned with changing demographics and industry dynamics. The Economic Development team initiated a review of the City’s 2019 Economic Development Strategic Plan to verify what is working and should continue, and to identify how the City should adjust its strategies and tactics to ensure it maintains the appropriate trajectory into the future. In recognizing major shifts that have occurred as a result of the global pandemic, it is essential to understand how the City’s economy has evolved and changed. These shifts have uncovered potential factors that could impact our community including physical space needs for companies, workforce dynamics, residential preferences, and the substantial growth of the Columbus region. This update includes the reexamination of the City’s 2019 Economic Development Strategy in light of these trends and provides strategic insights to address these factors. The Economic Development team worked with TEConomy Partners LLC (“TEConomy”) to update the 2019 Economic Development Strategic Plan. TEConomy is comprised of leading research and policy analysts, economists and practitioners in economic development. TEConomy staff has undertaken similar strategic planning and visioning projects for public and private agencies, for- profit firms, and universities. Having worked in these three environments—industry, government, and academia—its members understand each perspective and provide common ground for building agreements, setting visions, and helping implement those visions. In addition to the all-encompassing Economic Development Strategic Plan, the Economic Development team worked with Newmark Global Strategy & Consulting (“Newmark”) to conduct a specific Semiconductor Supply Chain Positioning Study. This report provides a playbook to help Dublin attract businesses within the semiconductor supply chain, as well as inform the principles and recommendations found in the comprehensive strategy provided by TEConomy. Newmark is a full-service firm with both consulting and delivery capabilities at every stage of the real estate lifecycle. Newmark’s team of management consultants in the Global Strategy and Office of the City Manager 5555 Perimeter Drive • Dublin, OH 43017 Phone: 614.410.4400 Memo Memo re. Resolution 78-23 Adopting the 2023 Economic Development Strategic Plan Update October 17, 2023 Page 2 of 2 Consulting division help companies determine what facilities they need and where they are needed, identify how those facilities’ operating conditions should be organized geographically, functionally, and socially while optimizing costs to the business. At the June 5, 2023 City Council Work Session, both the TEConomy and Newmark teams presented the draft strategies by reviewing data sources, methodology, trends identified, and recommendations. Based on City Council’s input and discussion, TEConomy incorporated the feedback and findings from the Newmark Semiconductor Supply Chain Positioning Study into the all-encompassing 2023 Economic Development Strategic Plan that is attached. Recommendation After over a year of research, data collection and discussing (1) where we are, (2) what we are facing and (3) what tactics we need to focus on to achieve economic prosperity, the Economic Development and consulting team presents the final report herein. Staff recommends approval of Resolution 78-23 adopting the 2023 Economic Development Strategic Plan. Updating the City of Dublin’s Strategic Plan to Ensure Long-Term Economic Prosperity Performed for: City of Dublin Economic Development Division Performed by: TEConomy Partners, LLC June 2023 TEConomy Partners, LLC is a global leader in research, analysis, and strategy for innovation-based economic development. Today, we’re helping nations, states, regions, universities, and industries blueprint their future and translate knowledge into prosperity. iii Table of Contents Setting the Context ....................................................................................................................................... 1 Headwinds Driving the Need for Dublin’s Updated Economic Development Strategy ................................ 3 Evaluating the Disruptive Trends in the Wake of the Pandemic .............................................................. 3 The Rise of Mixed-Use Urban Development in Nurturing Knowledge Industries ................................ 3 The Shifting Preferences Among the Modern High-Skilled Workforce ................................................ 6 The Changing Nature of Industry Clustering and Supply Chains .......................................................... 9 The Need for Ongoing Investment in Maintaining Strong Local Economies ...................................... 12 Implications for Dublin’s Economic Development Trajectory: A Renewed Call to Action ..................... 13 Updating Dublin’s Economic Development Strategy .................................................................................. 15 Strategy 1: Create Distinctive Mixed-Use Development Nodes ............................................................. 16 Strategy 2: Make More Predictable Development Processes ................................................................ 23 Strategy 3: Nurture the Growth of Targeted Industry Clusters .............................................................. 25 Strategy 4: Foster Sustainable Partnerships to Catalyze Value-Added Collaborations .......................... 37 Implementation ...................................................................................................................................... 41 Conclusion ................................................................................................................................................... 44 Appendix A: Setting Dublin’s Broad Economic/Economic Development Context ...................................... 46 Appendix B: Dublin’s Industry Cluster, Talent & Innovation Analysis ...................................................... 155 Appendix C: Dublin Semiconductor Supply Chain Positioning Study ....................................................... 178 1 Setting the Context In today’s global, knowledge-based economy, a region’s economic performance is shaped by several core factors that include: • The structure of the region’s economy; • The key economic drivers located within the region; and • The competitiveness of the region’s core business climate. The past and present performance as well as the projected future trajectory of a region’s economy are shaped by economic generators and catalysts. Economic generators are the core industry and public sectors that drive a region’s economy. Economic catalysts are the “agents of change” that affect the performance of a region’s economy. These must be analyzed and assessed to understand the factors that have and will shape the performance of a region. The leadership of the City of Dublin has demonstrated a deep appreciation and understanding of these economic principles. Seeking to develop a strategy to advance the community’s already vibrant economy, the City of Dublin engaged Battelle’s Technology Partnership Practice (now TEConomy Partners, LLC) in 2011 to develop a Cluster-based Economic Development Strategy and Action Plan. The Plan evaluated the economy of Dublin, the presence of clusters of industry activity upon which future growth could be focused and outlined a series of recommended strategies and actions to help Dublin sustain its competitiveness into the future. Based on the initial recommendations, the City of Dublin has worked to implement many of the strategies outlined in the cluster study. In 2019, the city re-engaged with TEConomy to update the initial strategic plan through a set of quantitative analyses and a situational analysis that leveraged interviews and focus groups with local industry stakeholders. Key findings included: • Dublin’s economic vitality is primarily driven by the presence of large anchor companies that provide a strong industrial employment base. • Dublin experienced steady employment growth during the latest economic expansion, which has allowed it to keep pace with the Greater Columbus Region and has aligned it with the region’s specialized strengths in specific industry clusters related to corporate headquarters, information technology, finance and insurance, and business support services. • Dublin’s highly educated population functions as one of its key assets helping build the city’s reputation as a residential destination for the region’s skilled workforce. • Dublin has maintained its position over time as a preferred residential destination with a high quality of place due to high quality schools, significant investments in public infrastructure, quality public services, and a high-value housing stock. However, that report also noted that each of the attributes that have driven Dublin’s past success also exposes the city to risks that can jeopardize the future growth trajectory in the face of new disruptive socioeconomic headwinds. 2 Beginning in 2020, the City of Dublin again engaged TEConomy to provide yearly updates to the comprehensive set of quantitative inputs that underly the key recommendations of the economic development strategy. These updates are designed to ensure the City of Dublin’s leadership is able to leverage the latest available data to examine ongoing trends and their implications for continued implementation of the vision of the economic development strategy. The latest quantitative update, conducted in Q4 2021 (see Appendix A), underscores the findings of previous reports, in particular the need to reexamine the implications of the previously noted attributes that have driven Dublin’s historical growth. Recognizing the dramatic shifts that occurred as a result of the global pandemic as well as the future shifts that will likely occur as a result of Intel’s $20 billion investment in the region, the City of Dublin recognized the need for current, enhanced intelligence related to business dynamic factors impacting its community. These shifts in combination with changing workforce dynamics have exposed potential risks of disruptive change that include: • An aging stock of commercial office space in conjunction with key anchor tenants re-evaluating physical space needs in light of shifts in certain key industries towards hybrid and remote work models due to the ongoing pandemic. • Changing workforce dynamics and residential preferences in conjunction with a limited supply of accessible housing stock that can continue to attract a highly skilled workforce. • Rapid growth in the Greater Columbus Region’s economy and population that puts pressure on established commuting patterns and employment destinations, particularly with respect to the buildout of peer benchmark communities and corresponding increases in industry attraction efforts that compete with Dublin’s profile as a destination community. As a result, there is an opportunity to reexamine the city’s economic development strategy in light of these recent trends. A critical evaluation of the strategy’s goals and ongoing implementation is especially timely given new opportunities that continue to develop both in the city as well as throughout the region, including the major medical care facility expansions from Ohio State, Mount Carmel, and OhioHealth as well as Dublin’s ongoing proximity to the Transportation Research Center (TRC) and its related connected and autonomous vehicle efforts along the Route 33 Corridor in addition to the development of the Beta District. Exciting new developments such as the recent announcement of Intel’s investment in the region in a $20 billion chip fabrication facility (and eventual expansion to potentially up to a $100 billion buildout over the next decade) are also creating new economic development opportunities that Dublin must be prepared to meet. To this end, TEConomy undertook a comprehensive update driven by both qualitative and quantitative inputs that provide the basis for refining the strategies outlined in the 2019 Strategy, thereby helping to ensure the city is positioned for growth in coming years. The examination and update to the Strategic Plan seeks to address the gaps and barriers that will need to be overcome in order to enhance the region’s economic drivers and position the City of Dublin to capitalize on additional economic opportunities. 3 Headwinds Driving the Need for Dublin’s Updated Economic Development Strategy Evaluating the Disruptive Trends and Economic Growth Opportunities Facing Dublin in the Wake of the Pandemic Since the strategic plan’s last major update in 2019, a number of transformational trends have impacted economies at all levels – national, state, regional, and local. At the forefront of creating new economic headwinds was the impact of the Covid-19 pandemic, which served both as a highly disruptive force on business operations as well as a massive accelerator of ongoing trends in the digitalization of work. As the nation’s economy continues to recover from the impacts of the pandemic, employers at regional and local levels have found themselves confronting additional factors that challenge established trends in economic growth including a historically competitive and supply-constrained labor market, rising inflation, and changing needs from businesses for site locations due to new models of work. Four key disruptive trends were identified in the previous strategic plan that created economic risk for the City of Dublin, with the potential to impact economic development strategy, demographics, and the nature of work. In the wake of the pandemic and subsequent economic impacts on local economies, there is a need to re-evaluate these factors’ ongoing impact on economic development strategy and be responsive to emerging trends that could impact Dublin’s growth. An updated perspective on each of the disruptive trends and their evolution since 2019 are discussed below. 1. The Rise of Mixed-Use Urban Development in Nurturing Knowledge Industries: Building on Successful Growth to Establish New Mixed-Use Nodes and Adaptive Reuse The 2019 strategy identified the rising importance of mixed-use urban development as a key pillar of modern local economic development (cited in signature work conducted by the Brookings Institute, the Urban Land Institute, and the NAIOP Research Foundation). Although the pandemic had acute disruptive impacts on the vibrancy and value proposition of mixed-use development due to closures of retail and service industries, demand for these spaces has largely recovered over the past several years and they remain a key component of place-based development policy. A recent Forbes article citing the ongoing investment in large scale mixed-use development projects notes that: Even when compared to trophy properties and new construction, office tenants at mixed-use developments pay on average 24.7 percent more at a mixed-use property, according to JLL research. This makes perfect sense as the experiential workplace explodes in popularity. But it doesn’t stop at the office. Multifamily buildings can benefit from shorter lease-ups and rent premiums due to the immediate availability of jam-packed amenities. Workers, residents, travelers and the community are demanding an elevated setting for productivity, leisure and culture, and mixed-use development is a solid retort.1 1 Billion-Dollar Mixed-Use Developments Demand Attention, Mark Zettl, Forbes, Feb 28, 2023. 4 The ongoing demand for mixed-use, high density development nodes, still often referred to as “live- work-play” environments, has contributed to significant gains for local economies that have embraced their role as anchor assets. A 2022 Q4 assessment of creative and mixed-use office stock by JLL noted that they not only outperformed other real estate classes in off-core submarkets, but that “occupiers are increasingly prioritizing experiential factors and location context, driving resilience in demand for creative office assets and office within mixed-use projects, which have generated almost 9.0 million s.f. of positive net absorption across asset classes since the second half of 2021.”2 At the same time, evidence has continued to show that traditional place-based attraction efforts which primarily take the form of business tax incentives are not as cost-effective as public services to businesses as well as investment in creating vibrant labor stocks of skilled workers3, both of which are addressed through expansion of “nodes” or “districts” of high-density mixed-use development. As a result of ongoing financial success, appeal to regional workforces, and consistent demand from businesses, the concept of “cities within cities” grounded by mixed-use anchors are continuing to drive major growth opportunities that are attracting large scale projects from key employers.4 At the same time, demand for traditional office space is expected to slow in 2023 amidst changing employer preferences and economic uncertainty. NAIOP’s latest office space demand forecast from Q4 2022 notes that: The national office market absorbed 6.6 million square feet during the second and third quarters of 2022, but the vacancy rate continued its climb to 17.1 percent, the highest level since the third quarter of 1993. The completion of new office space outpaced absorption. A deeper look into the numbers reveals an appetite specifically for high-quality office buildings, which may support leasing activity in newly completed buildings despite continued weakness across the office sector. This flight to quality is most likely driven by tenant preferences for flexibility and the desire to attract and retain talent. The mere threat of a recession has caused tenants to take a defensive posture and become more cautious when renewing leases, with many instead choosing to move to a smaller, newer and more flexible footprint. Moreover, the large supply of space available for sublease weakens rental rates and contributes to lower net absorption. 5 The combination of high demand for vibrant mixed-use spaces and slowing demand for office space has created a dynamic where certain types of development are critical to attracting and retaining employers and workforce, especially given further trends in the changing preferences of workers noted below. The Urban Land Institute and PwC’s 2023 Emerging Trends in Real Estate report summarizes the impacts of these two trends: 2 Creative and mixed-use offices outperform as tenants target vibrancy, JLL Snapshot, Jacob Rowden, November 15, 2022. 3 Bartik, Timothy J. 2020. "Place-Based Policy: An Essay in Two Parts." Policy Paper No. 2020-021. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research. https://doi.org/10.17848/pol2020 -021 4 Tomorrow’s Communities Are Smart And Urban, Where Everything Acts As A Concept, Jennifer Castenson, Forbes, Aug 9, 2021. 5 NAIOP Office Space Demand Forecast, Fourth Quarter 2022, NAIOP Research Foundation, November 2022. 5 “Companies should make the workplace a destination instead of an obligation,” said a consultant at an architecture firm. This phenomenon is driving a bifurcation in performance between class A offices and class B/C offices. Demand for new buildings with the latest environmental standards and the newest amenities remains strong, while older buildings that lack desired amenities are losing ground.6 For Dublin, the changing demand for real estate stock and attractiveness of mixed-use environments present a major opportunity to build on the success of the city’s signature mixed-used development, Bridge Park. The ongoing buildout of the development has continued to generate significant economic activity, positive accolades, and emulation from other suburbs in the Greater Columbus region, with nearly $600 million in investment to date.7 The success of Dublin’s investment in the project reflects the larger demand trends noted above, and there is now a need for additional mixed-use development projects throughout key nodes within the city to address potential risks from other areas of legacy office stock. Conversations with local industry stakeholders confirm Bridge Park is critical to Dublin’s attractiveness as a site location for businesses, but continued emphasis on development can appear to present a risk at a time when more companies are adopting hybrid and remote work models that reduce the need for traditional office space. Although seemingly contradictory, mixed-use developments incorporating amenities are now even more critical to site location decisions for companies seeking to establish “destination” offices that support hybrid work models, since “live-work-play” environments increase the value proposition of travel to offices for in-person work for employees. There is still a demand for in- person space to serve as an anchor for company operations and support in-person meeting needs, but with current demand focused on newer, smaller spaces in attractive mixed-use commercial districts. Conversely, remote work trends will continue to devalue traditional office parks without these amenities, since companies will be more reluctant to invest in real estate that may deter employees who are considering remote work options. An additional noteworthy trend for Dublin to keep in mind is the increasing ability to leverage legacy office buildings towards new adaptive reuse, in particular within the life science, medical office, and multi-family context. The NAIOP Research Foundation notes the increasing conversion of legacy office stock to these building types in response to declines in office utilization during the pandemic and more favorable market conditions for these other segments.8 For Dublin, this trend serves to address emerging demand in healthcare and life sciences industries while also serving as a potential outlet for addressing demand for housing stock. 6 Emerging Trends in Real Estate 2023, Urban Land Institute and PwC. 7 A neighborhood to envy — and replicate, Columbus Business First, John Bush, Mar 3, 2023. 8 New Uses for Office Buildings: Life Science, Medical and Multifamily Conversions, NAIOP Research Foundation, Emil Malizia, March 2022. 6 2. The Shifting Preferences Among the Modern High-Skilled Workforce: Disruptive Impacts of New Working Models and the Role of the Digital Workforce as a City Asset The pandemic conditions, in combination with very tight labor market conditions for skilled talent, have caused significant changes in workforce dynamics since the previous strategic update in 2019. A 2021 McKinsey report on the future of work notes three large scale trends that emerged as a result of the pandemic and which are still in the process of reshaping the workforce9: • Remote work and virtual meetings are likely to continue, albeit less intensely than at the pandemic’s peak. • COVID-19 may propel faster adoption of automation and AI, especially in work arenas with high physical proximity. • The mix of occupations may shift, with little job growth in low-wage occupations. Many other studies affirm that the impact of these trends is anticipated to concentrate even more job growth in high-skills jobs roles with hybrid working models, which has significant implications for regional and local economic development strategy in both industry targeting as well as workforce development. In addition, the digitalization of industries and work processes across all industries that was already taking place is expected to continue at a rapid pace. According to the World Economic Forum’s latest report on the future of work, technology adoption is expected to be the primary factor driving organizational change over the coming years. Their analyses identify technology and computing-related skills as being the fastest expanding job roles across a variety of industry sectors and business types, with disruptive impacts causing a structural labor market churn of 23 percent of jobs over the next 5 years and an estimated 6 in 10 workers requiring training before 2027 to incorporate new skills, with a focus on digital and analytical reskilling.10 These significant changes highlight the importance of cultivating a “thick” labor market for local economies—that is, a high concentration of skilled workers aligned with areas in high demand by the market to build resilience to the ongoing impacts of broader disruptions. As noted in previous data updates for Dublin, the city’s industry base remains concentrated in information technology and business services sectors that are likely to be at the heart of disruptive trends, while at the same time the city’s high quality of place makes it an attractive residential destination for workers in these industries (particularly those with hybrid or remote work models). Ongoing data about remote and hybrid work trends suggests that shifts in behavior during the pandemic are likely to have permanent effects, with one Gallup study suggesting that 55 percent of workers expect hybrid work arrangements to persist into the future (see Figure 1). 9 What is the future of work? McKinsey & Company, Jan 2023. 10 The Future of Jobs Report 2023, World Economic Forum, April 2023. 7 Figure 1. Gallup Study Results on Remote Work Trends in 2022 Source: Returning to the Office: The Current, Preferred and Future State of Remote Work, Gallup, August 2022 The confluence of digitization, new working models, and worker preference trends means that Dublin needs to both attract the locations which anchor a business’ hybrid operations while at the same time cultivating the thick labor market through growing its residential worker population, which is highly desirable for businesses to locate in proximity to. Regional development economists who study Midwestern cities note that this often takes the form of a “chicken and egg problem”: “If you don’t have many high-tech firms or high-tech workers, you can’t attract high-tech workers because you have no high-tech firms, and you can’t attract high-tech firms because there are no high-tech workers.”11 This dynamic re-emphasizes the role of “tech” talent—the broad set of occupations encompassing both traditional IT jobs as well as data and analytics and advanced computing and electronics expertise—as a key differentiator for local economies to address both sides of this balance by attracting businesses as well as further growth of the skilled worker population acr oss the industry mix. The anticipated demand for tech workers is expected to span all industries as tech-enabled applications and services are further adopted, including in industry sectors such as services, healthcare, education, amenities, and infrastructure that are traditionally more “low tech.” As a result, regional and local talent attraction strategies will need to refocus around attracting and retaining tech and other high digital skills talent bases even in the face of declining office location employment and legacy IT services industry clusters. 11 The Fresh Economic Development Strategy Emerging in the Midwest , Route Fifty, Sharon O'Malley, December 2022. 8 A 2022 BCG study on the world’s leading tech hubs notes that there are a variety of short and long-term “levers” that regions can employ to attract both the supply and demand for digital talent in the face of this dynamic, including: • Short term actions such marketing and brand enhancements aimed at tech talent and financial incentives for individuals to attract and retain tech-skilled residents • Medium term actions such as corporate tax and R&D incentives, attraction of anchor companies employing high levels of tech talent, and government support for workforce development and entrepreneurial ecosystems • Longer term actions such as regulatory support for companies in key industry sectors, continued investment in lifestyle amenities, formation of industry ecosystem support organizations, and attraction of higher education and R&D institute site locations that can serve as anchors for talent Regional and local policymakers are taking action using variations of these policies to aggressively recruit these workforces in hopes of competing for company site location decisions, while state and federal lawmakers are considering additional investment in tech workforce development in the wake of significant new funding for regional technology and innovation hubs.12 The economic multiplier effect of these high wage jobs and their ability to create clusters of industry activity have led many developers to consider a robust tech workforce part of the “new critical city infrastructure.”13 The reach of tech as a critical enabler of local economic growth also extends far beyond large software and services company locations: “Ninety-three percent of today’s small business owners report using at least one type of technology platform to help run their business, with the average owner utilizing three different platforms. Of those, 85 percent report that technology platforms helped to get their business up and running, and 94 percent report that technology helps them run their business more efficiently.”14 For Dublin, there is a key need to attract a base of tech workers to help ensure the city’s future ability to both attract modern business operations as well as provide future ready workers for existing industry anchors. Results from a survey of Dublin’s industry leaders (See Appendix B) confirm that trends in working models have shifted since the pandemic in favor of hybrid work models (Figure 2), reflecting new preferences that the city must incorporate into attraction and retention efforts, particularly for tech talent who often have increased access to remote work options. 12 Regional Technology and Innovation Hubs (Tech Hubs) Program, US Economic Development Administration, accessed at: https://www.eda.gov/funding/programs/regional-technology-and-innovation-hubs. 13 New Critical City Infrastructure: A Tech Workforce, Forbes Real Estate, Jennfier Castenson, April 2022. 14 New Study Shows Technology Platforms Critical to Small Business Growth , US Chamber of Commerce, August 2, 2022. 9 Figure 2. Remote Work Preferences of Workers at Dublin Companies, Pre- and Post-pandemic Time Periods Source: TEConomy Analysis of Dublin Economic Development Survey Results Although Dublin has retained a significant footprint of IT and computing sector companies, the city must continue to take efforts to attract both established and emerging companies focused on tech-enabled products and services across a variety of industry sectors and seek to leverage its highly educated population as a key asset. Similarly, these headwinds indicate the need to attract and root a new generation of tech talent in the city to seed future growth in the face of new developments in the regional economy and the ongoing importance of access to skilled labor in company site location decisions despite the prevalence of remote work. One challenge the city will need to address is the lower availability of residential housing stock accessible to and aligned with entry and mid-career tech talent to anchor the future talent supply, with a recent housing study completed by Urban Partners noting that the combination of aging population and lower vacancy rates has created a difficult dynamic for new homebuyers. The combination of shifting workforce dynamics, the need for tech talent to bridge the transition to digital operations across industries, and new working models accelerated by the pandemic presents one of the largest potential impacts to Dublin’s future growth trajectory, particularly in the face of other peer communities positioning themselves to respond to these trends. The city will need to take bold action to align itself with the next phase of growth for the Central Ohio region. 3. The Changing Nature of Industry Clustering and Supply Chains: Evolution of the Central Ohio Industry Base The previous Dublin strategy identified several major factors influencing the nature of how industries cluster and integrate with their supply chains, including the importance of collaborative industry and innovation ecosystems, access to entrepreneurial ecosystems and investment capital, and proximity to talent pipelines that supply skilled workers. These headwinds are still highly relevant today, with many of these factors now taking on an even greater importance due to the space demand and workforce dynamics noted above. Industry cluster-based development initiatives have been re-elevated in the public policy sphere in recent years due to significant federal spending aimed at influencing growth of targeted industries . Headlined by $1 billion in grant funding through the EDA’s Build Back Better Regional Challenge 10 (BBBRC)15 and the nearly $53 billion bipartisan CHIPS and Science Act of 2022,16 ambitious federal investments aimed at bolstering regional and local industrial and technology capacities have placed cluster-based growth strategies at the forefront of economic development at the regional and local level. The Brookings Institute reflects on these massive investments in industry clusters in its 2022 update on the future place-based economic development policy17: Over the long run, regional economies grow and decline based on their ability to specialize in high-value industries and evolve those specializations over time. Industry clusters—groups of firms that gain a competitive advantage through proximity and interdependence in areas such as talent and innovation—can be a compelling strategic concept, especially for communities that have struggled through economic decline. A clear body of evidence showing that firms and regions benefit from clustering has led to widespread adoption of cluster-oriented activities within the economic development field. Yet these cluster-based economic development initiatives must contend with many forces outside of local control. Macroeconomic and technological forces have caused industries and technologies to emerge, grow, and then decline, only to be replaced by new, emergent technologies. Perhaps more importantly for regional and local stakeholders like those in Dublin, they also note: How regional leaders can best accelerate and capture the benefits of clustering is not always straightforward, but several factors likely matter. The ability of regions to support the creation of young, high-growth firms seems to be particularly important, as these are the vehicles for innovation and the quality job creation that results. Institutions and infrastructure matter as well; a region’s schools, universities, and research centers influence the quality of workers and the amount of local innovation, while a region’s physical and digital infrastructure shapes how workers connect with businesses and how businesses connect with each other. And the networking, information exchange, and collective action enabled by civic institutions—such as chambers of commerce, business leadership organizations, and industry associations—can shape a region’s resilience to shocks by galvanizing and activating leadership networks to address shared challenges. The affirmation of cluster-based economic development at all levels of public policy highlights the ongoing importance of creating a region’s industrial identity through this lens, with Dublin at the epicenter of several major cluster-based development headwinds. The Greater Columbus region is poised for major growth after the decision by Intel in 2022 to locate two chip fabrication facilities in New Albany, totaling approximately $20 billion in investment with direct employment of 3,000 jobs at the facilities and an additional 7,000 construction jobs over the course of 15 $1B Build Back Better Regional Challenge, US EDA, accessed at: https://www.eda.gov/funding/programs/american-rescue-plan/build-back-better 16 FACT SHEET: CHIPS and Science Act Will Lower Costs, Create Jobs, Strengthen Supply Chains, and Counter China , US White House, accessed at: https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/09/fact- sheet-chips-and-science-act-will-lower-costs-create-jobs-strengthen-supply-chains-and-counter-china/ 17 The future of place-based economic policy: Early insights from the Build Back Better Regional Challenge , Brookings Institute report, November 2022. 11 the facility buildout. These facilities are also “expected to attract dozens of ecosystem partners and suppliers needed to provide local support for Intel’s operations – from semiconductor equipment and materials suppliers to a range of service providers” which will occupy an adjacent 500-acre technology park.18 The new factories are expected to support Intel’s next-generation chipsets and a focus on innovative process technologies. Various educational and workforce development stakeholders are already taking action to address the need for new workers and anticipating the buildout of a large new manufacturing industry cluster19 which has the potential to alter the region’s growth trajectory for decades. Dublin must be prepared to play a role in this industry’s explosive growth potential, and has taken steps by engaging Newmark Consulting to undertake a semiconductor supply chain positioning study (Appendix C). In addition, an existing regional industry cluster initiative has been underway and will continue to have high relevance to technology-based economic development. The Northwest 33 Council of Governments, which includes Dublin, Marysville, Union County and the Marysville-Union County Port Authority, created the Beta District high-tech region that follows the US-33 corridor. Focused on transportation technologies and smart mobility infrastructure, the “living laboratory” allows for demonstration, testing, and industry support for transportation manufacturers, logistics, and public infrastructure sectors. Leveraging this asset and its proximity to major manufacturing operations in Marysville will be critical to expanding into new future-facing markets for Dublin. A newly emerging cluster for Dublin also highlights the headwinds driving the city’s cluster-based development potential. Spurred by rapid expansion of its hospital and medical sector relative to the previous strategy update, the city now has the potential to build on a newly forming cluster in allied health. With the $161 million Wexner Medical Center Outpatient Care facility opened in 2022, the $20 million expansion of OhioHealth Dublin Methodist, and construction of Mount Carmel’s new $250 million hospital, the city has seen significant expansion activity that is likely to continue as the region consolidates its healthcare systems and expands into rural and remote medicine. The clinical anchors in the region can also serve to attract biomedical research and technology services companies, as well as healthcare management companies which are increasingly driven by tech applications. These examples highlight the evolving nature of industry clusters in the region and the need for a responsive strategy from local policymakers to identify target industries and the demand drivers that influence their location decisions. As the region continues to expand into additional tech-enabled products and services, Dublin will need to position itself around a distinct economic identity in order to compete with peer communities for opportunities. 18 Intel Announces Next US Site with Landmark Investment in Ohio, Intel Press Release, Jan 2022, accessed at: https://www.intel.com/content/www/us/en/newsroom/news/intel-announces-next-us-site-landmark-investment- ohio.html#gs.xrby2b 19 With high-tech manufacturing plants promising good jobs in Ohio, workforce developers race to get ready , Brookings Institute Report, January 2023. 12 4. The Need for Ongoing Investment in Maintaining Strong Local Economies: Role of Amenities and Infrastructure in Driving Business Dynamism Despite ongoing economic and demographic change, the case for ongoing investment in local quality of life remains strong. Amidst declining population growth, remote work trends, and hollowing out of traditional industry bases, many Midwestern cities are turning to incentives designed to attract people based on quality of life attributes such as school systems, access to public services, and opportunities for recreation.20 With competition from peer communities continuing to accelerate, particularly in light of some of the aforementioned economic and workforce trends, cities will increasingly need to sell their lifestyle “brand” through investment in amenities and infrastructure. This shift in policy has taken root gradually over the past decade, where “the emerging focus on attracting people who can provide the foundation for a solid workforce in the region stands in contrast to other approaches to economic development, which can often prioritize policies like tax breaks for companies to build factories or warehouses.”21 However, the pandemic and the subsequent recovery have highlighted stark divisions between communities with the quality of life “capital” to remain resilient and attract new investment versus those who increasingly cannot attract new industry bases. In a 2022 policy paper, the Brookings Institute highlights this distinction: While incentives-driven business attraction remains one part of local economic development, numerous studies have found that it has not solved many of today’s local economic challenges. Rather, an increasing number of local leaders are going beyond measures of job growth to instead prioritize job quality, productivity, income growth, or other qualify-of-life measures, especially in smaller communities where job creation is not a realistic objective. To achieve these broader aims, leaders are moving away from singularly focused transactions and toward more holistic, integrated approaches. This includes investments in strategic initiatives such as helping existing firms and industries grow, innovate, and develop diverse talent; creating an inclusive, homegrown entrepreneurship ecosystem; rebuilding Main Streets, downtowns, or other neighborhood corridors as flywheels for broader market-based growth and wealth creation; and centering talent and housing affordability in economic competitiveness and inclusion. Finally, both regional and community actors are investing in good governance by bringing local leaders and institutions together to solve problems and create the conditions in which workers, families, businesses, and other key partners are willing and able to stay and invest in the community.22 As highlighted in the key metrics assessing quality of place in the updated strategic assessment (See Appendix A), Dublin has continued its longstanding investment in maintaining its high quality of place, and as a result is better positioned than many communities to undertake more ambitious economic development activities. The city’s school systems and residential neighborhoods remain in high demand, while the preservation of recreational and green spaces and increasing buildout of walkable 20 The Fresh Economic Development Strategy Emerging in the Midwest, Route Fifty, Sharon O'Malley, December 28, 2022. 21 Ibid. 22 Making local economies prosperous and resilient: The case for a modern Economic Development Administration , Brookings Institute, June 2022. 13 infrastructure into new development remain priorities for high skills workers. The city has also continued to place a high priority on public safety and maintaining its legacy infrastructure. However, if it wants to maintain its desirable position Dublin will need to approach ongoing community reinvestment in a tactical manner that accounts for the ways in which its business and amenities districts have aged over time as well as the changing population dynamics driving broader socioeconomic shifts. As the city seeks to expand to support buildout on its perimeter, there is a significant risk of the city “hollowing out” around its legacy office parks and business assets if revitalization efforts are not also targeted there to redevelop aging office stock. Investment in new types of amenities such as residential fiber connectivity and improved public transit to supplement existing quality of life advantages may also become key differentiators against peer communities. As it begins to face pressure from other suburbs in the region due to high levels of population expansion and development across the region, the city will need to continually assess its regulatory climate and adopt best practices that attract businesses and new population. Another key risk to the city’s ongoing relevance as the Greater Columbus region expands is its housing stock composition and shortages in both supply and vacancy turnover. The city will need to find ways to expand housing access for skilled talent seeking to locate in the region if it wants to attract attention from businesses in STEM and tech-intensive industries. Also, significant declines in Dublin’s service industry workforce during pandemic have not yet been recouped by growth during the recovery, with evidence that changing trends in commuting and proximity to place of employment may act as barriers to them returning in the absence of affordable housing options and access to the city’s amenities. The lack of available resident workforce could serve as barrier to expansion of new industries such as healthcare services and the growth of service amenities industries to support new development. While Dublin remains one of the leading communities in the Greater Columbus region, future growth in the face of disruptive headwinds is not assured and the city will need to remain focused on creating a high quality of place while also exploring new ways to expand access to the city’s lifestyle. Implications for Dublin’s Economic Development Trajectory: A Renewed Call to Action As noted in the headwinds outlined above, Dublin faces a rapidly changing industry environment, new types of demand for space, a changing workforce, and a confluence of other factors that has been rapidly accelerated by the pandemic and its aftermath. Several key thematic implications for the city’s economic development emerge: • Transformative economic development changes are occurring in the Great Columbus Region that are likely to impact the trajectory of its communities for decades to come, and Dublin should be prepared to capture its share of this opportunity to secure its economic future. The city should leverage its role as a geographic midpoint between new semiconductor facilities, established transportation manufacturing operations, and downtown financial and business services industries to establish a bold new identity as a hub for high end electronics systems R&D, integration, testing, and value-added technology services. Industry attraction can seek to target infrastructure and transportation systems integration and tech 14 applications to complement existing strengths, but also expand into healthcare technologies and services leveraging the growth in new healthcare facilities. o The city has already begun to evaluate the feasibility of attracting semiconductor supplier companies, and should expand this work to consider additional support segments such as electronics design, testing, and integration firms • Trends in remote and hybrid work are likely to persist and will have real impacts on Dublin’s ability to attract traditional large-scale office park developments. The city must recognize that its resident workforce is a civic and economic development asset and focus its efforts on attracting this workforce by focusing on key amenities. • The success of the Bridge Park development and its critical role as a business attraction asset are indicative of continuing demand for signature mixed-use developments that can serve as industry ecosystem anchors. The city should explore the redevelopment of legacy real estate stock into additional mixed-use nodes to support further centers of activity designed to attract businesses and talent in order to avoid a “hollowing out” of its business park base and build a more resilient portfolio of companies. • The city has continued to maintain its desirability through sustained investment in quality of place amenities and infrastructure. Dublin will need to maintain this commitment, but also navigate the need for expanding access to its economy and infrastructure in order to enable expansion of its economy and remain attractive to businesses. The city should continue to explore development of new higher density housing stock integrated into mixed-use developments. 15 Updating Dublin’s Economic Development Strategy Dublin’s economic development mandate has not changed since 2019; however, the urgency upon which it must be implemented has accelerated. The key facets of Dublin’s economic development ecosystem that will help ensure future economic vitality can still be graphically depicted as a wholistic and integrated set of key principles (see Figure 3). Figure 3. Key Facets of Dublin’s Economic Development Strategy Source: TEConomy Partners, LLC. Driven by an acceleration of the economic headwinds outlined in the previous section, the City of Dublin must focus its economic development efforts on the following strategies: 16 • Create distinctive mixed-use development nodes to meet 21st Century industrial demand for vibrant physical space while maintaining Dublin’s high quality of place standards. This in turn will create the modern, live/work/play flexible spaces that will attract and retain not only a vibrant industrial base, but also the talent pool industry requires. • Make Dublin’s development processes more transparent and predictable thereby reducing uncertainty. This in turn will create a business-friendly environment that is highly responsive to changing industrial needs. • Nurture growth of targeted industry clusters through proactive attraction and business retention/expansion activities. This will help ensure that Dublin’s economy is positioned for future economic growth by making sure that cutting-edge industries and the talent they require find Dublin to be an attractive, business-friendly environment upon which to anchor their success. • Foster sustainable partnerships to catalyze value-added collaborations. The entire economic development strategy is predicated on the city’s ability to foster value-added collaborations among industry, academia, and the government and non-profit sectors. It is also important to point out that no economic development strategy can be successful unless the underpinning foundational assets of a community, its high-quality infrastructure and quality of place assets, are not only maintained but further enhanced. While it is not the intent of this study to address infrastructure and quality of place assets, such as roadways, services, and school systems, the ability of Dublin to maintain its high standards in these areas is paramount to the success of any economic development effort. Based on the quantitative and qualitative findings derived from the analysis, the following updated strategic plan has been designed to meet the needs of industry, capitalize on Dublin’s comparative assets, and help position the city for continued economic growth. The tactics to pursue under each action were identified in close consultation with the City’s Economic Development team to ensure the greatest relevancy to Dublin’s specific situation. Strategy 1: Create Distinctive Mixed-Use Development Nodes to Meet 21st Century Industrial Demand for Vibrant Physical Space while Maintaining Dublin’s High Quality of Place Standards Rationale The headwinds outlined in this update as well as the economic development strategy from 2019 both confirm the importance of modern, place-based development as a key economic development strategy tool that addresses both business and talent attraction needs. Demographics, workplace trends, and return on investment are all continuing to align in favor of modern development nodes anchored by mixed-use districts. 17 Several ongoing trends, as outlined by major central Ohio developer the Robert Weiler Company in 202123, are continuing to make a strong case for mixed-use development: • Continuing urbanization of suburbs, driven by population expansion and rent premiums for proximity to town centers and amenities across both younger and older generations • Ongoing changes to lifestyles in the working-age population, with an emphasis on proximity to work and minimal commuting times • Increasing demand for rental units, reflected by housing supply constraints and changing attitudes towards home ownership versus lifestyle preferences • Emergence of co-working spaces, which help address the demand for destination offices amidst declining full-time office footprints • Tax revenue potential, where mixed-use development outperforms single use properties due to cost efficiencies and lower land usage • Focus on sustainability from CRE investors to help de-risk portfolios going forward The most recent National Association of Realtors survey confirms many of these preferences, in particular the alignment between older and younger generations on development that minimizes commute times and maximizes walkability.24 A recent 2023 McKinsey study also notes that the financial and real estate climate and market incentives may further accelerate the demand for new types of mixed-use development: It goes without saying that the COVID-19 pandemic upended where and how the world uses spaces. In some regions, office attendance is still dramatically lower than it was before the pandemic; in the United States, for example, it hovers at around 50 percent. Consumers have returned to brick-and-mortar stores but are shopping closer to home. Greater expectations for same- or next-day shipping have increased demand for industrial square footage near the places where people live and work. Perhaps even more transformative than altered demand is the fact that occupiers have a new set of needs, beyond what real estate companies have traditionally provided. Hybrid work and omnichannel sales require that landlords supply creative physical designs, as well as innovative services and solutions. Tenants, lenders, and other stakeholders increasingly look for buildings that play a role in fighting climate change. Digital sophistication has become essential to help real estate players act more quickly and make wiser decisions, to enable emissions reporting, and to track and analyze how space is used. Complicating the panorama is the fact that after a decade-long growth market, capitalization (cap) rates have expanded across sectors. Interest rate hikes, combined with higher inflation in many parts of the world, have dramatically altered the financing costs and expected returns for owners, developers, and managers. Inflation and uncertainty about the direction of the global economy have made housing significantly less affordable, made gaining access to credit even more difficult in emerging 23 6 Mixed-Use Development Trends, The Robert Weiler Company, 2021, accessed at: https://www.rweiler.com/blog/mixed-use-development-trends/ 24 NAR 2020 Community and Transportation Preference Survey, National Association of Realtors, 2020. 18 markets, and created a challenging fundraising, deal-making, and return-generating environment for real estate investors and operators. Those who invest in and operate real estate as they did five years ago may underperform and lose share.25 The dynamics at play have created the need for new types of development activity. Evidence from demand for space at Bridge Park and the importance of the signature mixed-use asset as a key employer destination reaffirms that further expansion of this development can help to improve the city’s competitive position. Moreover, some of the largest development investments taking place across the nation to meet the needs of major tech and services companies are leveraging flagship mixed-use projects as the centerpiece of economic development activities. Companies will create additional layers of demand for modern spaces as they evolve to changing conditions. The case of cloud services company DropBox can serve as an illustrative example of shifting employer attitudes towards real estate in the wake of the pandemic: Dropbox tailored its real-estate solution to these goals. Instead of abandoning all of its office space, it converted some of its former offices into Dropbox Studios used for collaborative work, team events, and training. It optimized the existing spaces for collaboration by removing most desks and creating conference rooms with flexible wall systems and movable furniture so that spaces can increase or shrink depending on need. In some cases, Dropbox cut the amount of square footage it leases. In Dublin, it moved to a new location built from the ground up for collaborative experiences. The new space includes a café, where employees can connect and recharge over free espressos and cappuccinos, and immersive technology for videoconferencing, intended to level the playing field between on-site and remote participants.26 Dublin has many similar cloud and technology services companies which are likely to respond to changing real estate needs in ways that require access to redeveloped spaces located in key development nodes. Cardinal Health, one of the city’s largest tenants, has adopted a similar remote and hybrid-first approach to its workforce and real estate needs: Because of the adoption of hybrid work, Cardinal is redesigning and renovating its Dublin headquarters on Emerald Parkway to have fewer individual cubicles and more common and collaborative space, he said. In the Fall, the company exited a 400,000-square-foot second Dublin building on Rings Road because the HQ is big enough to accommodate those who still report to the office.27 While the pivot many companies are making requires lower overall space footprints, at the same time it provides more significant destination office anchors and allows regions to attract new resident workers. However, this does mean that ongoing development, redevelopment, and adaptive reuse of existing real estate stock to create meaningful mixed-use nodes will become an imperative to attract and retain companies in tech and business-intensive industries. 25 Six new imperatives for real estate players, McKinsey article, March 7, 2023. 26 Workplace real estate in the COVID-19 era: From cost center to competitive advantage, McKinsey article, May 24, 2022. 27 Cardinal Health CEO says the company can avoid layoff trend, Columbus Business First, Feb. 2023. 19 Dublin can now take the next steps in building out a modern environment through actions to expand and connect new mixed-use district nodes, an approach which many city centers outside of urban cores are taking to help create interconnected series of placemaking assets across a broader city landscape. New models of industry-centric placemaking are combining distinctive development nodes to create ecosystems centered around targeted industries as opposed to discrete development projects, an approach Dublin can utilize to build around its existing strengths and allocate resources in a cost- effective way towards high impact placemaking. Actions to Pursue To create distinctive development nodes to meet 21st Century industry demand for vibrant physical space, Dublin should focus on the following four actions: • Continue to build on the momentum of Bridge Park/Bridge Street District by supporting the development of additional live/work/play physical spaces; • Move the West Innovation District forward by setting the conditions for development attractive to the targeted industry clusters; • Focus efforts to redevelop the Dublin Corporate Area/legacy office parks and provide additional points of connection to alternative living/retail space; and • Connect development nodes through deployment of transportation and mobility technologies and serve as suburban test bed. Action 1: Continue to build on the Momentum of Bridge Park/Bridge Street District by supporting the development of additional live/work/play physical spaces. Recognizing the headwinds previously identified, the City of Dublin has been on the cutting-edge of modern development in recognizing that people want choices, urbanism, and walkable communities. The Bridge Street District, anchored by Bridge Park, is Dublin’s response to these trends. The 1,100 acres provide alternative development choices for Dublin’s residents and corporate citizens as well as expands and enhances the unique attributes of destinations such as Historic Dublin. It is critical that the City of Dublin continue to build on the momentum of Bridge Park by fully developing the Bridge Street District. Tactics to pursue in the continued build-out include the following opportunities: • Pursue two additional Class A office buildings by obtaining commitments from developers and approval by City Council by 2024 with construction occurring by 2025. • Immediately adjacent to the Bridge Street District, market the city-owned land along Emerald Parkway (near Riverside Drive) and develop a new office project. • Plan and program the Snouffer Road intersection improvement. • Redevelop 5/3 Bank office site at Sawmill Road and West Dublin-Granville Road. • Focus attraction efforts on high-growth companies being incubated elsewhere in the region that are seeking urban-like environments with ability to scale (related to Strategy 3, Action 3). 20 • Ensure the Bridge Street District development node retains its “cool” factor by incorporating recreational amenities, adhering to landscape architecture standards, and collaborating with the Dublin Arts Council to incorporate public displays of art throughout the District. • Undertake the SR-161 Corridor study to understand how to continue to build upon/leverage the development/momentum of Bridge Park. • Target unique amenities to the region, including signature hotel and conference center. • Redevelop the Dublin Village site to allow for additional mixed-use development. Action 2: Move the West Innovation District Forward by Setting the Conditions for Development Attractive to the Targeted Industry Clusters In partnership with academic and institutional partners, the City of Dublin has concentrated significant investment in the West Innovation District over the past decade. As part of this effort, important projects have been addressed to establish infrastructure for future development that is particularly attractive to both the targeted mobility and healthcare industry clusters. It is critical that the City of Dublin move the West Innovation District forward by setting the conditions for development attractive to the targeted industry clusters. Tactics needed to leverage the opportunities that are present within the West Innovation District include the following: • Execute the build-out of the balance of city-owned property associated with the OSU-Medical Center investment. • Leverage city-owned and OU-owned land to build-out OU Dublin Campus. • Pursue research investments/partnerships with both OU and OSU around key industry clusters (related to Strategy 3, Action 2). • Complete construction of the US 33/Post Road Interchange. • Pursue the relocation of Eiterman Road. • Purchase strategic tracts of land for future economic development deals through further land acquisition, including focusing on access to rail as an economic asset. This should include: o Undertaking a West Dublin Passenger Rail Station Area Planning Study and Vision Plan. o Incorporating land acquired on western border into planning strategies. • Build on success of Crosby Court flex space. • Develop an annexation and infrastructure service strategy for lands west of the city as part of the current Community Plan update. • Conduct water/sanitary sewer capacity studies in West Innovation District. Action 3: Focus Efforts to Redevelop the Dublin Corporate Area/Legacy Office Parks and Provide Additional Points of Connection to Alternative Living/Retail Space As Central Ohio’s first office park community, Dublin has an older building inventory. The core of Dublin’s commercial building stock dates to the 1980s and 90s. Other more recently developed 21 communities in the region are able to offer more modern buildings at competitive pricing. Consideration must be given to how this older inventory can be redeveloped to fit 21st century demands. The Dublin Corporate Area Plan (DCAP) was adopted as part of the Dublin Community Plan in September 2018 and provides guidance for future development and redevelopment. The DCAP area is approximately 1,000 acres and includes all legacy office parks within the Metro Office, Blazer Research, and Emerald Corporate business districts and the Frantz Road corridor. The intent of DCAP is to encourage and facilitate new investment and redevelopment of commercial properties in the planning area, as these business districts have and will continue to serve as a key corporate base for the City of Dublin. To ensure that these areas remain vibrant as these “legacy” office parks mature, DCAP included the following key principles: • Encourage a variety of land uses, focusing on needed amenities to serve workers, nearby hotel visitors, and residents. • Apply placemaking principles to encourage vitality within the district. • Use formal and informal open spaces as organizational and focal elements for new development and redevelopment. • Support integrated infill residential development at key locations in support of office development. • Mitigate negative impacts of new development on adjacent neighborhoods. • Position the planning area as a well-connected district (both walkable and bikeable) with service and recreational amenities (open spaces) to facilitate opportunities for community interaction. It is critical that the City of Dublin focus efforts to redevelop the Dublin Corporate Area/Legacy Office Parks and provide additional points of connection to alternative living/retail space. Tactics to pursue in the redevelopment efforts include the following opportunities: • Implement the Dublin Corporate Area Plan (DCAP): o Implement best practices around mixed-use, higher-density development that combine structured parking, variety of housing types, retail, dining and walk-to-work office space. o Partner with the property owners for the redevelopment of the Metro Center frontage consistent with the Dublin Corporate Area Plan along Frantz Road as a catalyst for redevelopment of Metro Center. • Continue innovation and technology cluster attraction efforts with emphasis on talent pipeline and access to Dublink. • Consider the use of a Community Reinvestment Area (CRA)/abatement area to redevelop legacy office parks. • Work with the property owner on the potential repositioning (i.e., rezone, mixed-use, utility issues) of the land on the far south end of the former Ashland campus. 22 Action 4: Connect Development Nodes through Deployment of Transportation and Mobility Technologies and Serve as a Suburban Test Bed The City of Dublin has made significant strides to improve mobility options for residents, visitors, and the workforce. The purpose of these efforts is to provide access to a range of transportation options to connect more people to more places. It is critical that the City of Dublin build on these efforts by connecting the envisioned development nodes through deployment of transportation technologies while serving as a suburban pilot/test bed for these mobility technologies. Tactics to pursue in the deployment of transportation and mobility technologies include the following opportunities: • Pursue transportation and mobility connectivity to integrate DCAP with surrounding areas. • Leverage proximity to 33 Smart Corridor and Beta District and Smart Columbus to build out autonomous/connected “Smart” infrastructure as a beta/testing platform for R&D. o Attract firms/technologies to beta test on the City of Dublin’s and 33 Corridor’s “smart infrastructure”. o Determine next generation of Beta District and 33 Smart Corridor technology and initiatives. • Explore the creation of a regular circulator shuttle during normal business hours that travels from the West Innovation District through the Dublin Corporate Area to the Bridge Street District (similar to CBUS/Mobility Plan in progress). • Continue to ensure biking/pedestrian walkability of future developments, particularly within and connecting the three identified development nodes. • Consider the West Innovation District a place for a future passenger rail and Hyperloop stop. • Create a Smart Corridor R&D facility in West Innovation District on city and/or university- owned land (Could be part of RFI referenced under Strategy 1 Action 2). • Study and integrate with the MORPC and COTA corridor studies/initiatives. • Consider multi-jurisdictional opportunities regarding East/West regional transit. • Continue to support the linkage of the Northwest Corridor through the efforts of the Transportation Research Center (TRC) and its related connected and autonomous vehicle efforts along the Route 33 Corridor in addition to the development of the Beta District. • Continue marketing and expanding the Dublin Connector service. 23 Strategy 2: Make Dublin’s Development Processes More Transparent and Predictable Thereby Reducing Uncertainty Rationale The economic development strategy from 2019 outlined in detail the case that attracting and retaining value-added business enterprises is highly competitive, and the ability to grow and scale such companies within a region is extremely difficult. For a city to be a competitive location for attracting and retaining industrial drivers, it must ensure that its government policies, procedures, regulations, and codes are encouraging rather than discouraging investment. In gathering input for the 2019 economic development strategy, business leaders indicated that there is a perception that Dublin can be a difficult and expensive place to do business. While efforts have been undertaken since then to streamline the process, results from a recent survey confirm that Dublin’s regulatory environment is still of primary concern to its business leaders, falling only one percentage point behind lack of qualified employees and housing as the greatest barrier to company growth (Figure 4). In follow-up questions, business leaders expressed concern over the lack of transparency of decision making as well as the predictability and timeliness of decisions, all of which increase costs to conduct business in Dublin. While Dublin’s stringent design, planning, and zoning standards have contributed to Dublin maintaining a high “quality of place” in the face of rapid growth, others note that there are a number of equally attractive communities in the region that are viewed as easier to work collaboratively with on business development initiatives. Figure 4. Current Barriers to Growth for Dublin Companies Source: TEConomy Analysis of Dublin Economic Development Survey Results It is critical that the City of Dublin evaluate its development processes to identify opportunities to be more transparent and predictable thereby reducing uncertainty. This will require that the city clearly articulate the type of development being sought, and then have the wherewithal to adhere to the stated vision/plan for development. 24 Actions to Pursue In order to identify opportunities to streamline and make a more predictable development process thereby reducing uncertainty, Dublin should focus on the following two actions: • Foster understanding and predictability regarding the type of development being sought and adhere to the stated vision/plan for development; and Action 5: Foster Understanding and Predictability Regarding the Type of Development being Sought and Adhere to the Stated Vision/Plan for Development As a result of its reputation within the business community, it is critical that the City of Dublin streamline and make more predictable its development processes thereby reducing uncertainty. Tactics to pursue to foster understanding and predictability include the following: • Validate Council’s commitment to the following area plans: o Dublin Corporate Area Plan (DCAP) o West Innovation District (WID) o Bridge Street District (BSD) • Update the Community Plan: o Reaffirm overarching Vision section o Update Community Character and Environment and Fiscal Analysis sections o Identify any areas of the community that could be rezoned to allow development by right, rather than requiring additional approvals. • Articulate Council’s vision to Council/Board/Members/Staff: o Conduct joint training for Board and Commission members and staff clearly articulating vision/responsibilities/purview o Ensure that development plans are adhered to and policies are followed routinely. • Explore additional opportunities for innovative/expedited Visioning Process involving Council, Board/Members, staff, developers, and land owners similar to 2022 DCAP Visioning Process. • Ensure that as new hires come on board as part of the economic development leadership staff they are connecting with industry leadership on a regular basis (Strategy 4, Action 10). 25 Strategy 3: Nurture the Growth of Targeted Industry Clusters through Proactive Attraction and Business Retention/Expansion Activities Rationale Dublin has long recognized the value of cluster-based economic development strategies, and TEConomy recommended in its 2019 strategic plan that Dublin continue to pursue best practices centered around targeted industry sectors. The Brookings Institute notes in their broad re-examination of cluster-based economic development strategy in 201828 that successful cluster initiatives have five key traits: • They are focused on establishing a robust ecosystem, not quick job gains; • They are industry-driven, university-fueled, government-funded; • They place a collective big bet on a unique opportunity; • They are championed by passionate, dedicated leaders, typically within industry; and, • They are anchored by a physical center. The City of Dublin’s major industries continue to meet several of these criteria, and coupled with targeted growth initiatives that address gaps the ongoing potential of cluster-based economic development for the city can yield significant growth if properly executed. While the successes of cluster-based strategies validate its importance in guiding policy, Brookings also notes that cluster growth is a dynamic and complex process: In his book, The Keys to the City, Michael Storper posits that the regions that manage to continually benefit from agglomeration throughout these cycles do so by effectively specializing, adapting, and respecializing. While there is still no consensus among economists about what conditions best allow for this, there are a few hints. Regions need to specialize to drive productivity, but successful regions seem to specialize in a certain way. Rather than specializing in a single industry, regions that experience robust job growth tend to have a presence of economic activities that are related enough to allow for effective specialization but offer enough variety that they can evolve into new industries and activities should the old ones experience decline. For example, Detroit’s decline was both attributable to the decline of the auto industry and the lack of a new growth industry to replace it. Silicon Valley, on the other hand, has experienced many cycles of industrial decline (e.g., computer manufacturing, semiconductors, etc.), yet has always found a new but related set of activities that generate the next growth cycle (e.g., software development, artificial intelligence, etc.).29 In light of the disruptive trends highlighted in previous sections, Dublin may find itself at a point in time where adaptive respecialization and a renewed focus on key industries is needed to mitigate risks from broader regional and macroeconomic trends. Brookings acknowledges that the impact of the pandemic and broader socioeconomic trends have introduced several new factors for consideration in cluster- based development since 2018, including addressing economic inequality, targeting clusters at global challenges such as climate change, leveraging urban-rural linkages to better compete with “superstar” 28 Rethinking Cluster Initiatives, Brookings Metropolitan Policy Program, July 2018. 29 Ibid. 26 metros, and leveraging new analytical approaches to optimize around a specific set of clusters rather than more generic ones.30 As the city’s clusters continue to evolve due to ongoing trends in the broader macroeconomy as well as changing conditions in the local environment, it is critical that Dublin continue to emphasize creating broader cluster ecosystems rather than pursuing single opportunities in isolation. The city remains home to several specialized bases of industry employment, but recent uncertainty in the traditional office markets in combination with emerging new growth opportunities across the Greater Columbus region has created some instability in the clusters that have historically grounded the city’s strategic outlook. Understanding the way that the city’s clusters continue to shift towards new end markets and actively deploying solutions to target cluster development will be critical for Dublin in the coming years to help mitigate risk as well as capture significant shares of growth in new markets. Actions to Pursue In order to nurture growth of targeted industry clusters through proactive attraction and business retention and expansion activities, Dublin should focus on the following three actions: • Enhance existing economic development efforts; • Focus the Economic Development Team’s efforts on key industry clusters; and • Capture a larger portion of the Greater Columbus Region’s scaling/high-growth companies. Action 6: Enhance Existing Economic Development Efforts Local governments that have put the most effort and resources into spurring local growth have generated significant results and an impactful bang for the public’s dollar. As more people come to understand the connection between public policy and economic prosperity, it is important to understand that enhanced economic development efforts that engage a broad constituency of thought leaders can have significant impact on a region’s economy. For example, educational institutions, who will nurture and teach the children of those we hope to attract, is critical to drawing in and retaining the young families an economy needs to grow. The critical role local decision-makers play in creating fertile and sustainable economic development can’t be overstated. It’s incumbent on them—in the fierce competition across the globe for economic growth—to double down on the policies and strategies that work, eliminate those that make the city less attractive to business development, and build the infrastructure needed to keep it growing. It is critical that the City of Dublin enhance existing economic development efforts. Tactics to pursue to enhance economic development efforts include the following: • Advance collaboration/partnerships among industry, academia, and government to advance economic development. • Work with the Dublin City Schools on the growth of its academy programs by finding industry and university partners for additional physical spaces and training opportunities. 30 A new federal grant should make regional leaders rethink their industry clusters, Brookings Institute article, September 2021. 27 • Train the City Leadership Team to conduct business retention and expansion visits. • Have the City Leadership Team visit with the Top 10 largest companies and key industry cluster firms annually. • Understand/be creative in the types of incentives that can be leveraged, for example: o Performance o Infrastructure o TIFs o Land o Fiber optics o Grants – relocation, renovation, LEED, technology, etc. o Entrepreneurial Services o PACE o Community Reinvestment Area o Federal grants for mobility/smart technology/beta test sites. • Provide staffing to ensure a minimum of 250 business retention and expansion visits can be conducted annually. • Be proactive in terms of near-term semiconductor opportunities by: o Creating a rapid response team for semiconductor projects. This team might include representatives from Economic Development, Planning, Engineering, the City Manager, and Planning & Zoning Commission. o Hold regular internal collaboration meetings between Economic Development, Planning, Engineering, and Transportation and Mobility to coordinate goals and efforts, and to discuss the City’s prospect pipeline in order to ensure the City can respond quickly and effectively to leads. o Develop industrial/flex/lab-focused property capacity studies for priority sites. Encourage private property owners (possibly through incentives) to undertake required due diligence studies. o Continue to cultivate relationships and information sharing protocols with utility providers to improve readiness to handle complex project inquiries. o Demonstrate that the City is not only responsive to inbound project opportunities but can also improve its ability to satisfy information requests from complex project inquiries and execute projects with speed and certainty when semiconductor prospects arise. 28 Action 7: Focus the Economic Development Team’s Efforts on Key Industry Clusters As noted in the 2019 economic development strategy, the city’s industrial base has historically strong industrial specializations that create opportunities related to expansion, attraction, and supply chain development. However, future growth is not assured in the midst of disruptive headwinds. As a result, city’s economic development efforts need to be organized to most effectively engage and focus on the needs and opportunities of evolving and newly emerging industry clusters. Re-examining the city’s clusters affirms the need for advancing an integrated economic development approach for each targeted industry cluster that focuses broadly on retention and expansion, business attraction, and new company formation, and is tailored to maximize the opportunities presented by each specific industry cluster’s position in the global marketplace. In the 2019 economic development strategy, TEConomy identified the set of regional industry clusters driving the Greater Columbus Regional economy and their presence within Dublin’s industry footprint. This prior identification formed an important foundation and knowledge base for updating the region’s and City of Dublin’s industry cluster analysis, and also highlighted several key clusters where Dublin had both competitive advantages and strategic opportunities for expansion: • IT and Computer Services • Medical Biosciences and Healthcare Services • Mobility Technologies Over the course of the pandemic, these and many of the city’s other clusters saw significant declines which have been partially offset by the recovery from the pandemic (for full discussion of employment trends, see data analyses of cluster economic performance in Appendix A). At the same time, clusters that remain highly specialized in the region such as Corporate Headquarters, Business Support Services, and Finance & Insurance are at highest risk of being disrupted by new technologies, workforce trends, and hybrid working models. Compounding the situation is a broader sense of economic uncertainty amidst high inflation rates and pullback from major employer job and investment activity due to macroeconomic recessionary warning signs. The city now has a strong case for refocusing its targeted industry attraction around this set of opportunities to help build resilience to ongoing trends as well as bolster its existing cluster strengths. Based on an updated analysis of the comprehensive picture of the region’s and city’s industry clusters, several potential targets emerge as opportunities for a renewed cluster strategy: • IT & Computer Services, which remains a specialized industry in the city despite the impacts of remote work models and is critical to maintaining the city’s workforce relevance in industry attraction efforts. The city should pursue mid-size and emerging IT and tech services companies (such as local company Expedient) with smaller physical space needs and seek to co-locate them with other destination offices in mixed-use districts to increase the dynamism of the cluster. Similarly, the city can seek to increase its resident workforce in this space to bolster business attraction, including remote workers seeking to access Dublin’s lifestyle advantages. • Medical Biosciences & Healthcare Services, an emerging cluster centered around allied health opportunities and anchored by large developments and expansion of hospital and clinical services, which can serve as a link to rural communities to the city’s west as well as grow an 29 ecosystem of healthcare technology and services providers locating in proximity to major clinical operations. • Electronics & Mobility Systems Design & Engineering, which can leverage the city’s historical cluster strength in R&D and engineering services and proximity to mobility innovation assets to capture upstream technical services providers for the new semiconductor industry in addition to high value-added engineering services and systems integrators in the mobility industry. This cluster can leverage smaller footprint light manufacturing and flex space that the city is better equipped to provide in a land-constrained environment, and functions in a complementary role to other clusters by diversifying the city’s industry base across additional advanced industries. • Destination Office Locations for Tech-Enabled Products and Services, an evolution and aggregation of the Corporate Headquarters, Business Support Services, and Finance and Insurance Industries which seeks to attract “destination” office hubs for hybrid work companies supported by mixed-use business districts. The city should seek to attract companies in tech- enabled applications (such as companies providing tech-enabled business services like Updox) that are less likely to be disrupted by ongoing trends and which can serve to attract resident workers with digital skills. Further detail on recent activity in these clusters as well as potential actions for consideration as part of a cluster-based economic development strategy are discussed below. IT & Computer Services Dublin is already home to a specialized cohort of IT and computer services companies, and this cluster has historically been a critical component of Dublin’s industry base. The cluster employs nearly 3,900 workers as of the end of 2021, and Dublin is home to nearly 19 percent of the Greater Columbus Region’s workforce in this space which drives a very high employment specialization. While the industry faced declines during the pandemic, a rebound in growth in 2021 shows that the sector has nearly recovered with recent trends at the metro level indicating strong regional growth for 2022 (see Table 1). Table 1. Performance of Dublin’s IT & Computer Services Industry Cluster Dublin Industry Clusters Empl., 2021 Location Quotient, 2021 Dublin Avg. Annual Employment Change U.S. Avg. Annual Employment Change 2014- 17 2017- 20 2020- 21 2017- 21 2014- 17 2017- 20 2020- 21 2017- 21 IT & Computer Services 3,851 2.30 6.0% -3.9% 2.7% -2.3% 5.5% 4.4% 6.1% 5.1% Source: TEConomy analysis of U.S. Census Bureau’s County Business Patterns data for ZIP codes 43016, 43017; QCEW via Lightcast data release 2022.4 In the 2019 strategy, TEConomy noted this cluster’s immense importance as the enabler of digitalization of all types of industries, driving new technology sectors and attracting high growth companies. The headwinds noted above confirm that this sector is still a critical enabler of future growth for Dublin across all its industries, as well as a core anchor for the tech worker labor force the deploys modern 30 digital and software skills. Notably, Dublin saw major growth in software developer positions across all industries, with a 29 percent increase in jobs to over 1.6k workers in these roles over the 2017-2021 period, a rate that matched the Greater Columbus region’s growth and exceeded national growth. Companies are increasingly focused on providing front- and back-end turnkey services to other industries to enable many of their core business functions as digital integration continues to increase. Key applications areas continuing to see growth nationally and regionally include: • Cloud services and web and data hosting (including data centers), where Dublin is already home to several leading companies. • Software-as-a-Service (SaaS) Products serving a variety of industries, focused primarily on process automation and data analytics functions in end market applications such as business support functions, financial services, healthcare services, logistics, and consumer retail operations. • High performance computing services, led by providers of “virtual” computing power to do back-end data processing for applications and services but also including configuration, installation, and maintenance of computer clusters and other business IT infrastructure. • Networking and connectivity systems, often deployed within Internet of Things (IoT) devices and connected infrastructure via specialized providers who do primary assembly and integration work. Despite the increasing role of remote work within this industry cluster, Dublin continues to employ a major share of talent that will continue to be critical to long-term growth. However, as noted across several of the disruptive impacts outlined in previous sections, the continued presence of the industry and the ability to attract a residential workforce with industry-ready skills is not assured amidst a highly competitive labor market and major tech companies growing in peer communities. In order to help continue to root this cluster in Dublin and build resilience to risks, tactics that the city could pursue include the following ideas: • Develop a renewed industry attraction and retention strategy for IT and computer services firms, as well as other “tech” applications firms, designed to attract small and mid-sized anchor office locations to mixed-use development nodes across the city. This strategy would recognize the growing competitiveness of peer communities across the Greater Columbus region and work in complement to redevelopment and adaptive reuse efforts to create site locations and amenities that are most in demand from IT and computer services companies, particularly small and emerging companies with high growth potential. • Deploy a parallel initiative aimed at a renewed “tech” resident workforce attraction to mitigate risks to the “hollowing out” of Dublin’s high skills IT and computing workers due to population demographics shifts, intense competition from other peer communities, and to serve as a core pillar of company attraction to the city for destination office locations. This strategy would employ a multi-faceted approach to skilled tech worker attraction, including increasing access to housing for early career tech workers, buildout of mixed-use nodes providing amenities, and branding initiatives designed to capture talent flows from the Columbus region’s urban core to outlying suburban communities. 31 • Build on Dublin’s valuable fiber infrastructure in the Dublink network to expand low latency, high performance connectivity across the city, and build out full coverage of residential fiber networks to build a strong workforce attraction asset for resident workers in tech industries. Medical Biosciences & Healthcare Services While Dublin has recently begun to see increased development activity around major healthcare services industries through projects from Ohio State Wexner Medical Center, Dublin Methodist, and Mount Carmel, employment growth in this space has yet to offset significant declines in the healthcare workforce during the pandemic as of the end of 2021 (Table 2). This is due in part to broader national labor supply concerns for the healthcare industry, as facilities attempt to grapple with high worker turnover and mitigate challenging working conditions. Moving forward, Dublin’s efforts to grow this cluster could bear significant fruit if the city can build out clusters of specialty healthcare services providers and other healthcare business support around major development projects, especially given the presence of Ohio University’s medical campus and potential access to healthcare markets in rural areas northwest of the city. Table 2. Performance of Dublin’s Medical Biosciences and Healthcare Services Industry Cluster Dublin Industry Clusters Empl., 2021 Location Quotient, 2021 Dublin Avg. Annual Employment Change U.S. Avg. Annual Employment Change 2014- 17 2017- 20 2020- 21 2017- 21 2014- 17 2017- 20 2020- 21 2017- 21 Medical Biosciences & Healthcare Services 2,955 0.72 -0.1% -1.4% 0.0% -1.0% 2.6% 1.4% 1.8% 1.5% Source: TEConomy analysis of U.S. Census Bureau’s County Business Patterns data for ZIP codes 43016, 43017; QCEW via Lightcast data release 2022.4 Since other parts of the Greater Columbus region already boast significant clinical research hubs, Dublin’s strategy in this industry cluster has evolved into an opportunity to capture population and allied health demand from regional residents. This concept leverages healthcare “ecosystems” to provide physical hubs where patients can receive a variety of services ranging from primary care to diagnostic services to specialty treatment all in one geographic location, with ongoing patient care needs supported by digital health technologies including telemedicine, wearable monitoring, and other distance healthcare applications. The integrated nature of these ecosystems means that digital health applications in patient data management, payment and reimbursement processing, and clinical decision support systems are also critical components, which can attract additional industry presence focused on those services. The result is an end-to-end healthcare ecosystem of a variety of different healthcare providers and services companies managing patient outcomes through value-based care. Dublin has the opportunity to leverage its recent activity towards becoming a regional healthcare ecosystem serving the US-33 corridor (and potentially beyond). Existing hospitals and specialty care providers provide a significant backbone to build on, centered around the physical anchor of the medical 32 campus. Economic development strategy can target supporting digital health services providers as well as specialty diagnostic clinics and labs to help build out this ecosystem, and site them in proximity to existing and emerging developments. However, a key need to create economic value from a healthcare ecosystem will be finding sufficient labor to staff operations; amidst a challenging healthcare labor market and changing commuting preferences for workers in these labor segments, the city will need to take action to ensure that allied healthcare workers have access to housing in proximity to major provider locations. In order to help ensure that recent growth continues to build momentum in Dublin, tactics that the city could pursue include the following ideas: • Continue to support buildout of major healthcare delivery sites anchored around the medical campus district, including targeted attraction of secondary healthcare suppliers and services that can cluster in proximity to large care delivery locations and anchor additional bases of employment to create allied health ecosystems. • Emphasize the value proposition of the region to digital health and healthcare services tech companies, and aggressively target small- and mid-sized companies in this space with attraction efforts to appropriately developed site locations in proximity to major hospitals and outpatient care facilities. • Continue to explore opportunities to attract R&D and innovation activities in gerontology/aging science as well as remote/rural health through public-private partnerships to build on the base of industry activity and align with patient population needs. • Explore ways to increase accessibility to high-density housing in proximity to major care facilities for allied health workers to improve opportunities to meet labor demand in the face of changing commuting patterns. Electronics & Mobility Systems Design & Engineering Although not as sizable as other major clusters, Dublin’s R&D and engineering services sector is a key differentiator for the city as it considers the next generation of opportunities that are poised to transform the Greater Columbus region. Despite declines in job growth during the pandemic, the sector still remains highly specialized and totaled nearly 1.4k jobs in 2021, anchored by major engineering services and transportation systems firms as well as companies specializing in materials and food science as well as laboratory services (Table 3). The existing cluster can help position the region to pursue new strategic opportunities in two key areas that leverage systems engineering as well as R&D and testing: electronics systems, driven by the buildout of Intel’s semiconductor industry cluster in the Greater Columbus region as well as mobility and transportation systems, driven by ongoing activity based around the US-33 Smart Mobility Corridor and proximity to major automotive manufacturing operations in Marysville. Both these areas present opportunities for the city to re-specialize and evolve the existing industry base, and are complemented by synergies with the IT and Computer Services cluster which serves as a key services supplier to both industry focus areas. 33 Table 3. Performance of Dublin’s R&D and Engineering Services Industry Cluster Dublin Industry Clusters Empl., 2021 Location Quotient, 2021 Dublin Avg. Annual Employment Change U.S. Avg. Annual Employment Change 2014- 17 2017- 20 2020- 21 2017- 21 2014- 17 2017- 20 2020- 21 2017- 21 R&D & Engineering Services 1,373 1.68 6.2% -5.4% -0.4% -4.1% -0.3% 2.0% 3.2% 2.4% Source: TEConomy analysis of U.S. Census Bureau’s County Business Patterns data for ZIP codes 43016, 43017; QCEW via Lightcast data release 2022.4 As noted in the headwinds sections, the investment by Intel in its production operations in New Albany and the subsequent attraction of major supplier clusters will present major opportunities for the city to capture new types of industry that are aligned with forward-looking growth. Dublin has recognized the magnitude of this opportunity and worked to undertake a semiconductor positioning study in conjunction with Newmark Consulting (Appendix C). The results of this study, summarized in Figure 5, note that the city is best positioned to attract office, lab, flex, and some light industrial development associated with the semiconductor industry and its suppliers. Figure 5. Planning District Assessments for Semiconductor Investment from Newmark Positioning Study Source: Newmark Semiconductor Positioning Study performed for City of Dublin TEConomy is in agreement with the analysis put forward in the Newmark study, and would further note that Dublin is well-positioned to attract value-added upstream microelectronics R&D and design services that align with its existing base of skilled talent, its specialized R&D and Engineering services cluster, and lower need for large land use requirements. Similarly, the State of Ohio and in particular the Greater Columbus region is positioned amongst a group of midwestern states making significant investments in transportation and mobility systems innovation. This activity includes not only traditional vehicle manufacturing sectors, but is also focused on implementing vehicle systems connectivity and modern transportation infrastructure backed by 34 advanced analytics platforms. DriveOhio, the Ohio Department of Transportation’s initiative seeking to coordinate innovation activity and assets in this space, notes that the current portfolio of activity includes automated vehicle, connected vehicle, electric vehicle, and advanced air mobility efforts, all applications areas with high future growth potential. Dublin has also recognized the importance of this sector as a future driver of growth through its participation in the Beta District, which places emphasis on using infrastructure and testing assets to enable a “living laboratory” for piloting new transportation projects. As with semiconductors, the city can work to target high value-added upstream systems engineering companies engaged in the design, R&D, and integration work for transportation and mobility systems that can leverage the existing R&D and Engineering Services cluster and grow the footprint of activity in this space over time, as well as continue to attract projects that emerge through the evolution of Columbus’ investments from the US DOT Smart City Challenge award in 2016. This area also benefits from the presence of a complementary IT and Computer Services cluster that can provide infrastructure and services to engineering firms testing and deploying mobility systems. In order to help ensure that Dublin can capture new opportunities in these future-facing cluster specializations, tactics that the city could pursue include the following ideas: • Utilize the analysis highlighted in the Newmark Semiconductor Positioning Study to position the city to attract high value-added upstream R&D, design, and engineering opportunities related to the growth of the semiconductor industry in the region over the next decade. Specifically: o Create an inventory of all vacant lands and City-owned parcels that could potentially be (re)developed for semiconductor sector and other high-priority uses. o Generate semiconductor-focused content for the Dublin Economic Development webpage. o Identify a set of companies/manufacturers that could serve as ambassadors for future site selector visits. o Identify the top sites in each of Dublin's community areas/districts that should be the emphasis for marketing. o Organize familiarization (“fam”) tours for site selectors and companies around major events. Consultants can be targeted through the Site Selectors Guild, and company prospects in the semiconductor supply chain can be identified in association with One Columbus and JobsOhio. o Develop a list of semiconductor prospects in other communities and proactively market Dublin to those prospects. o Attend key semiconductor trade shows to market Dublin as a community of choice for semiconductor business relocation. The leading event in North America is SEMICON West. Other event schedules can be sourced through the semiconductor industry association called Semi (www.semi.org), and through JobsOhio. • Continue to pursue opportunities through the Beta District and DriveOhio that build awareness of the smart mobility opportunity and attract small and mid-sized mobility systems engineering services firms developing innovative products and services. • Seek to redevelop land in key districts such as the Blazer Research, Metro Office, Emerald Corporate, and Shier Rings Techflex Districts to better serve the needs of small to mid-size systems engineering companies, and seek to root clusters of emerging companies in these spaces within hubs with shared access to relevant assets (e.g., connectivity, power, etc.). 35 • Work with Emerald Campus and other educational and training partners to develop workforce skills-building, reskilling, and upskilling programs targeted at advanced mobility systems and semiconductor design and production to build the city’s brand as a workforce development hub in these applications areas. Destination Office Locations for Tech-Enabled Products and Services Dublin is still home to significant groups of companies with headquarters and branch offices across a number of key industry clusters, including formal corporate headquarters, business support services, finance and insurance services, and creative and design industries. Despite their sizable employment footprint and current specializations, mixed performance over the last several years and the many potential risks of disruption outlined in the headwinds facing the city make investment in targeting these industries with traditional development projects an uncertain proposition (Table 4). Table 4. Performance of Dublin’s Industry Clusters Aligned with Traditional Office Needs Dublin Industry Clusters Empl. 2021 Location Quotient 2021 Dublin Avg. Annual Employment Change U.S. Avg. Annual Emp Change 2014- 17 2017- 20 2020- 21 2017- 21 2014 -17 2017- 20 2020- 21 2017- 21 Business Support Services 2,878 2.31 -0.9% 0.5% -0.3% 0.3% 3.5% 0.9% 4.2% 1.7% Corporate HQs/Managing Offices 4,481 2.87 -5.0% 6.4% -1.3% 4.4% 1.9% 0.6% 1.1% 0.7% Creative & Design Industries 791 2.08 4.1% -5.9% 2.4% -3.9% 2.1% -2.5% 2.8% -1.2% Finance & Insurance 4,179 1.42 -11.2% 2.5% -4.5% 0.7% 1.6% 0.8% 1.7% 1.0% Source: TEConomy analysis of U.S. Census Bureau’s County Business Patterns data for ZIP codes 43016, 43017; QCEW via Lightcast data release 2022.4 Greater Columbus is home to a rapidly growing tech market, backed by significant VC investment. To attract the next generation of growing companies and compete for high growth startups advancing cutting edge technology, Dublin should seek to attract “destination” offices for major tech companies in the region as well as root clusters of anchor office sites for emerging companies within mixed-use business districts. To minimize the risk of disruption, the city can target both mature and emerging companies advancing tech-enabled applications that leverage in-demand skills and technology platforms. In addition to those noted above, several key industry verticals where the Greater Columbus region has advanced tech-enabled products and services in recent years include: • FinTech, InsurTech, Marketing & Sales Tech, and Other Financial Services and Business Support Services Tech • Business Process Automation 36 • Healthtech and Healthcare Services Software, and • Enterprise Management and Human Resources Software. Dublin is already home to several leading companies in these spaces with tech-enabled solutions, including Epiq, Corvel, Updox, and Veeva amongst many others. However, as noted in the discussion of disruptive trends, the real estate needs of these companies as well as the environment demanded by their workforces are rapidly changing. The city also needs to continue to attract emerging companies and entrepreneurs with high growth potential that can anchor the next generation of tenant companies in the city’s major commercial districts, and is facing stiff competition from other peer communities across the region to attract tech-focused firms. To address risks of disruption from new trends in industries that have traditionally help to anchor Dublin’s demand for office space, tactics that the Economic Development Administrator could pursue include the following ideas: • Pursue a business attraction campaign targeted at smaller footprint, tech-oriented companies that can help mitigate risk of disruption to the city’s established corporate base. • Implement a redevelopment campaign for Dublin’s legacy office park stock designed to upgrade the aging office spaces and align them with the needs of tech-focused companies seeking destination offices for hybrid workforces. This should include the use of mixed-use nodes and other modern amenities, and targeting of space and infrastructure needs for companies that are advancing digital or tech-enabled solutions. • Explore development of signature coworking or “on-demand” office projects in conjunction with new amenities that can serve as a vibrant “destination” for residential remote workers and can help mitigate risks from increasing adoption of remote work models for traditional office parks. • Explore the potential to attract a site location for a major venture capital investment entity, tech incubator or accelerator, or other signature assets that can serve to better anchor an entrepreneurial ecosystem in the city’s commercial districts and mitigate risks of relying on attracting emerging firms from other locations. • Examine incentives and investments being deployed by peer communities to attract emerging tech-based companies to competitively benchmark Dublin’s position and inform strategy. Action 8: Capture a Larger Portion of the Greater Columbus Region’s Scaling/High-Growth Companies As Action 8 outlined, the economic vitality of Dublin depends, in part, upon its capacity to foster the formation of new entrepreneurial-led businesses and sustain their growth as they scale-up and generate new, high-paying jobs in the community. Entrepreneurially led start-ups targeted on traded sector activities are needed to sustain economic growth. As a result, it is critical that the City of Dublin capture a larger portion of the Greater Columbus Region’s scaling/ high-growth companies. As previously noted, the Greater Columbus Region has become one of top metropolitan areas in the nation for scaling young companies, demonstrating the growth of its entrepreneurial culture and resources. Tactics to pursue to capture these firms in Dublin include the following: • As firms outgrow existing incubation space elsewhere in the Greater Columbus Region, leverage Dublin’s live/work/play developments (Strategy 1) to attract scaling firms thereby further diversifying Dublin’s economy. 37 • Work with the regional entrepreneurial ecosystem (Rev1, One Columbus, JobsOhio, and area venture capital firms) to identify/access these scaling firms. • Monitor and work to attract international R&D locations in key industry clusters. • Develop additional building inventory suitable for scaling firms that require space to grow into (See Strategy 1). • Continue to promote the start-up community in Dublin by leveraging the various co-working spaces in Dublin, such as Brickhouse Blue and CoHatch, and also determining the relevancy and future focus/efforts of the DEC. • Leverage Dublin’s IT infrastructure capabilities: o Promote Dublink as a competitive/cost saving advantage by developing a new targeted education campaign on the benefits of Dublink. o Increase Dublink capacity and availability to commercial buildings. Strategy 4: Foster Sustainable Partnerships to Catalyze Value-Added Collaborations Rationale It is not by mistake that Strategy 4 was placed in the center of the Venn Diagram as depicted in Figure 3. The first three updated strategies will require public-private partnerships in order to be successfully implemented, and the tactics described throughout the first three strategies call out numerous areas in which collaborations will be required. However, effective public-private partnerships are so critical in developing a robust economic development ecosystem that it is worth calling specific attention to a stand-alone strategy with recommended actions and tactics to ensure successful implementation. Networking between industry representatives, academia, and the public and non-profit sectors has been a proven staple of economic development for many regions. Whether formalized through collaborative institutions, through general industry technology councils, or more ad hoc informal efforts, there should be little doubt that regular contact and dialog between industry, academia, and the public and non- profit sectors can be the spark that leads to broad transformative initiatives. During the qualitative interviews, a number of industry leaders discussed the fact that they did not feel that there was the opportunity to network with other members of the industrial community or with city leaders. When asked if they would take part in such activities if venues were offered, they indicated they would welcome the opportunity. Raising awareness and building relationships is a foundational building block for establishing stronger collaborations between industry, academia, and the public and non-profit sectors. However, many regions lack the reproducible and sustainable mechanisms that allow academic, private, and public organizations to learn about each other’s approaches and capabilities. All too often, organizational silos exist that limit how the private sector, academia, and the public and non-profit sectors understand the opportunities for engagement and collaboration with one another. 38 Regions that are viewed as having a value-added networking/connectivity culture, often have the presence of the following attributes: • Face-to-face exchange of ideas and synergies that lead to the development of solutions; • Recognition of the importance of diversity; • Intrinsic belief that ideas only get better when they are openly discussed and considered by a mix of people; • Recognition that large scale and sustainable economic growth is the product of collaboration; and • Pursuit of value-added collaborative teams rather than the lone thought-leader. Regions that are viewed as having a culture that promotes and fosters cooperation and collaboration to solve its most pressing issues have the presence of the following assets: • "Pride of place" – strong commitment to region, desire to see region prosper, belonging to a place they want to live, including social networking focused on community-building; • Regional positivism (able to see opportunity in challenges) and proactive preparation for inevitable change-creating greater resilience within the community; and • Collaborative environment, including collaborations between: o Larger and smaller companies; o Public, private, and philanthropic sectors; o Academia and industry; o "Old" and "New" sources of wealth within the region; o Engagement in cross-fertilization for innovation, problem solving and creation by participants from different business groups, industrial sectors and fields of science/engineering. Actions to Pursue In addition to the numerous partnership that are referenced in Strategies 1, 2, and 3, in order to foster effective partnerships to catalyze value-added collaborations, Dublin should also focus on the following two specific actions: • Connect industry leadership with city leadership on a regular basis; and • Establish more effective industry networks to better connect local companies to each other and to the broader community as well as better connect the public and non-profit sectors to one another and to industry. Action 9: Connect Industry Leadership with City Leadership on a Regular Basis The need for a cultural mindset that promotes connections, cooperation, and collaboration is rooted in a number of related challenges: 39 • Problems often cannot be solved within organizationally defined boundaries, and decisions made by one individual/organization/municipality can have adverse impacts on others. • Many problems/issues are too large or complex for any one individual, organization, or unit of government to address. Issues such as economic development, broadband connectivity, and preservation of the quality of life in the region are examples of challenges that require cooperation and collaboration. • As organization and municipal budgets are strained and programs suspended or curtailed, cooperative program delivery schemes that provide for the coordination of services and the pooling of resources become more important. Long-term and area-wide planning for the delivery and combining of these services become critical in the task of maintaining services by improving the efficiency of delivery and cost-effectiveness through economies of scale. Regional entities are prime venues for discussing, planning, and implementing such area wide solutions. As a result, it is imperative that efforts are undertaken that connect public-private thought leaders, which in turn promotes economic growth and community prosperity for all. It is critical that the City of Dublin connect industry leadership with city leadership on a regular basis. Tactics to pursue to make these connections include the following: • Conduct semi-annual Industry Roundtable events hosted by City Council to create dialogues to ensure continuous process improvements. • Conduct semi-annual Developer and Commercial Real Estate Brokerage Roundtable events to create dialogues to ensure continuous process improvements regarding services offered, development processes, permit processes, etc. Action 10: Establish more Effective Industry Networks to Better Connect Local Companies to Each Other and to the Broader Community as well as Better Connect the Public and Non-Profit Sectors to One Another and to Industry Industry leaders from large, medium, and small companies articulated a lack of connection between one another as well as with elected and appointed city leaders. They expressed a desire to: • Better network with one another to understand common needs/supply chains/talent development and acquisition, and • Better connect with city leaders to be able to articulate common visions/desires/needs. Dublin’s economic development efforts can be further strengthened by establishing effective industry networks that better connect local companies to each other and to the broader community, thereby helping to: • Identify common needs through dialogue with companies, and then focus on shaping ways to provide more common services, such as addressing talent pipeline assistance, access to markets, business service gaps, regulatory issues, etc. • Provide guidance for economic development staff on cluster-based development. 40 • Serve as the portal/coordinated effort for attraction and expansion opportunities to ensure that seamless and unified information and services are provided. • Target out-of-state supply-chain and strategic partners of existing Dublin firms who are seeking to expand or make business location decisions and therefore would be targets for business recruitment efforts and help existing firms by filling supply chain gaps by locating in the region. • Aggregate and then address an industry cluster’s education, training, and workforce needs to impact curriculum, program development, and experiential learning with K-12 and higher- education institutions, helping education institutions by offering pools of skills needed to be addressed. Specifically: o Continue to engage with Dublin City Schools to support their expansion into semiconductor manufacturing training for high school students. o Continue to cultivate two-way relationships with higher education institutions to (1) amplify the positive messages that the schools can deliver about Dublin, and (2) improve the City’s ability to deliver value to its own businesses within vital industry clusters as well as new semiconductor prospects. • Stay abreast of emerging business issues, including federal regulatory changes, legislative issues, foreign trade issues, etc. and providing a base for common education and advocacy with elected officials and others. • Develop branding/marketing strategies focused on pro-active outreach marketing for each of the targeted industry clusters. It is critical that the City of Dublin establish more effective networks to better connect local companies to each other and to the broader community as well as better connect the public and non-profit sectors to one another and to industry. Tactics to pursue to make these networks more effective include the following: • Establish formal industry networking groups with dedicated events with the goal of enhancing regular local business community interactions. • Actively pursue opportunities to host regional innovation-related events at leading Dublin industries or establishments to increase awareness of the city and highlight local industry. • Support and attend Chamber (Business After Hours, Leadership Dublin, Dublin Corporate Challenge, Chamber Board, golf outings, etc.) and other business organizations’ events (JASCO, AIABG, Chinese Chamber, Korean Chamber, Hispanic Chamber, Union County Chamber, HDBA, NAIOP, Women in Tech, Black Tech, etc.) • Leverage and work with other regional economic development initiatives led through organizations such as JobsOhio, One Columbus, and MORPC. • Better connect businesses to the community through: o Volunteer efforts; o Philanthropy; o Event Marketing and sponsorship; 41 o Internships; o Adopt a park, natural space, or recreation programs; o Workforce initiatives aimed at development, attraction, and retention; o Corporate wellness programs. Implementation It is unrealistic to assume that all actions can be implemented immediately, nor that they all hold the same level of priority in terms of their impact on the future economic growth of the city. Table 5 clearly identifies for each strategy the critical pathway and the recommended timing of each action. For the classification of critical pathway: • Essential for those actions that are essential for the success of the strategy; • Significant for those actions that can make a major impact in advancing the strategy; and • Important for those actions that can contribute to the success of the strategy. For the classification of timing: • Immediate actions are those that should be undertaken within the first six months; • Short-term actions are those to be undertaken in the first year; and • Medium-term actions are those to be implemented in the one- to three-year period. Table 5: Strategic Priorities/Implementation Timeline Strategy/Action Critical Pathway Timing Strategy 1: Create distinctive mixed-use development nodes to meet 21st Century industrial demand for vibrant physical space while maintaining Dublin’s high quality of place standards Continue to build on the momentum of Bridge Park/Bridge Street District by supporting the development of additional live/work/play physical spaces Essential Immediate Move the West Innovation District forward by setting the conditions for development Essential Short-term Focus efforts to redevelop the Dublin Corporate Area/legacy office parks and provide additional points of connection to alternative living/retail space Essential Short-term Connect development nodes through deployment of transportation and mobility technologies Important Medium- term 42 Strategy 2: Make Dublin’s Development Processes More Transparent and Predictable Thereby Reducing Uncertainty Foster understanding and predictability regarding development being sought Essential Immediate Strategy 3: Nurture growth of targeted industry clusters through proactive attraction and business retention/expansion activities Enhance existing economic development efforts Significant Short-term Focus Economic Development Team’s efforts on key industry clusters Significant Short-term Capture larger portion of Greater Columbus Region’s scaling/high-growth companies Significant Mid-term Strategy 4: Foster sustainable partnerships to catalyze value-added collaborations Connect industrial leadership with city leadership Important Immediate Establish more effective networks Important Short-term Furthermore, it will be critical that progress made towards implementing the actions be measured over time as well as the impact of the actions on the overall economy so that the strategic plan can be modified in order to ensure its maximum impact. Figure 6 provides recommended measures of success for each strategy. 43 Figure 6. Strategic Measures of Success Source: TEConomy Partners, LLC. 44 Conclusion The City of Dublin has faced dramatic shifts resulting from the global pandemic that have exposed potential risks of disruptive change that include: • An aging stock of commercial office space in conjunction with key anchor tenants re-evaluating physical space needs in light of shifts in certain key industries towards hybrid and remote work models due to the ongoing pandemic. • Changing workforce dynamics and residential preferences in conjunction with a limited supply of accessible housing stock that can continue to attract a highly skilled workforce. • Rapid growth in the Greater Columbus Region’s economy and population that puts pressure on established commuting patterns and employment destinations, particularly with respect to the buildout of peer benchmark communities and corresponding increases in industry attraction efforts that compete with Dublin’s profile as a destination community. At the same time, Dublin faces new opportunities that continue to develop both in the city as well as throughout the region including the major medical care facility expansions from Ohio State, Mount Carmel, and OhioHealth and Dublin’s ongoing proximity to the Transportation Research Center (TRC) and its related connected and autonomous vehicle efforts along the Route 33 Corridor in addition to the development of the Beta District.. Exciting new developments such as the recent announcement of Intel’s investment in the region in a $20 billion chip fabrication facility (and eventual expansion to potentially up to a $100 billion buildout over the next decade) are also creating new economic development opportunities that Dublin must be prepared to meet. Recognizing these seismic shifts since the 2019 Economic Development Strategy was released, this comprehensive update, driven by both qualitative and quantitative inputs, provides the basis for refining the city’s strategy thereby helping to ensure Dublin is positioned for growth in coming years. Dublin’s Updated Economic Development Strategy reinforces the need for 4 strategies and an associated set of 10 actions to focus the city’s efforts on the following: • Creating distinctive mixed-use development nodes to meet 21st Century industrial demand for vibrant physical space while maintaining Dublin’s high quality of place standards. This in turn will create modern, live/work/play flexible spaces that will attract and retain not only a vibrant industrial base but also the talent industry requires. • Streamlining and making more predictable development processes thereby reducing uncertainty. This in turn will create a business-friendly environment that is highly responsive to changing industrial needs. • Nurturing growth of targeted industry clusters through proactive attraction and business retention/expansion activities. This will help ensure that Dublin’s economy is positioned for future economic growth by ensuring that cutting-edge industries and the talent they require find Dublin to be an attractive, business-friendly environment upon which to anchor their success. 45 • Fostering sustainable partnerships to catalyze value-added collaborations. The entire economic development strategy is predicated on the city’s ability to foster value-added collaborations among industry, academia, and the government and non-profit sectors. The updated strategic plan has been designed to capitalize on Dublin’s comparative assets and help position the city to navigate the changing economic landscape. By working together, the opportunity for the City of Dublin to grow its economic base and increase community prosperity is substantial. If successful, it is expected that what will emerge are multiple public-private partnerships that will advance the city for the coming decades. Appendix A: Dublin’s Economic, Talent, Innovation, and Demographic Indicators 2 Overview of Data Update •Project Scope: “provide a comprehensive set of quantitative inputs, that when coupled with additional qualitative analysis, will offer the basis for helping to refine the strategies outlined in Dublin’s current economic development strategy.” •Data update is presented across key tasks highlighted in TEConomy’s statement of work: •Section 1: Update of Greater Columbus Industry Clusters •Section 2: Updates to Dublin’s Economic Performance and Workforce Data •Section 2.1: Updates to Dublin’s Industry Clusters and Business Dynamics •Section 2.2: Regional Benchmarking of Industry Clusters •Section 2.3: Dublin’s Workforce and Talent Indicators •Section 3: Recent Developments in Dublin’s Industrial Innovation Activity •Section 4: Update of Dublin’s Socioeconomic and Demographic Profile 3 Setting the Context for Local Economic Analysis: The Challenges of Leveraging Highly Localized Economic Data •The city of Dublin is primarily defined by two zip codes, but the accuracy of zip code-level economic data is constrained by a number of factors: •Zip codes are not official geographies used by federal and state agencies that publish economic data and are primarily used by the USPS for mail distribution. •Highly localized economic data such as the data available at the zip code level is often subject to limitations in coverage, suppression of detailed industry data, and reporting time lags. •Third-party data sources on individual establishments and employment (sometimes called “micro firm” level data) often suffer from data quality issues and require extensive cleaning and validation. •Estimation and imputation methods to generate complete zip code data are often highly sensitive to methodology assumptions and changes in the underlying federal data. 4 Setting the Context for Local Economic Analysis: The Challenges of Leveraging Highly Localized Economic Data (cont.) •Given these limitations, all zip code employment data are fundamentally estimates –the key difference between various sources is the methodologies they use and the limitations in coverage and level of detail. •Data generated and maintained by local tax departments and business registers will always represent the most accurate way to monitor and analyze the dynamics of local economies. •However, this assumes well-established data structures are in place to track detailed information about industry sectors and other relevant firm and employment characteristics. 5 Changes to Background Data Used to Estimate Zip Code- Level Economic Metrics Since the Last Update •TEConomy’s prior analyses of Dublin’s economic position and dynamics leveraged best available data sources that provided zip code-level estimates of employment and establishments. •However, changes to the underlying methodologies in both the federal reporting as well as the methodology used by 3rd party data providers has brought to light some shortcomings in the methodology used to develop those estimates. •As a result of these identified data shortcomings, TEConomy has developed and employed an improved estimation methodology to better capture Dublin’s local economic dynamics. •Despite reflecting a more accurate picture of local economic conditions, this change means that results for this update are not directly comparable to the statistics shown in prior updates. •Please note -overall key findings and strategic recommendations from previous assessments have not fundamentally changed as a result of this shift in methodology. 6 TEConomy’s Updated Approach to Estimating Zip Code- Level Employment Trends •To best estimate zip code level economic activity for this quantitative update, TEConomy employed an approach that leverages both of the best available federal data sources on zip code level employment: Census Zip Code Business Patterns (ZBP) and Census LEHD LODES Data (see subsequent slides for more detailed explanations of these sources). Start with federally reported total ZBP Employment for Dublin using the time series over the last decade Develop high level shares of annual industry activity using LODES data for 2 Dublin zip codes (at 2-digit NAICS level) Develop more detailed shares of annual industry activity using county and zip code business patterns data across Greater Columbus region (at regional industry cluster level) Inspect time series for outliers and any other variation that does not align with known industry and employer trends Dublin and Greater Columbus benchmark region employment estimates over the last decade 7 County Level Data: Census of Employment & Wages (CEW), LightCast Data Where Do the Data Come From? •Fully disclosed annual employment and income data is available at the U.S., state, and county level based on the Bureau of Labor Statistics Covered Employment and Wages (CEW) data series. State employment services departments collect the base data and pass it to the U.S. Department of Labor as part of the Unemployment Insurance Program. •Some data in this series are non-disclosed at local levels to protect privacy. LightCast (formerly Emsi), a well-known provider of labor market analytics products for economic developers, adjusts the non-disclosed elements in these data via an imputation process that provides a full set of industry and employment data for economic modeling. •Latest year available: 2021 Key Strengths •Highly reputable data product that relies directly on mainstay economic data released by BLS. •Ability to track employment, wages, and overall establishments over time by detailed industry codes. Key Limitations •BLS data are only available at county geography levels, and a change to Lightcast zip code employment estimation recently introduced high variability into zip-level data. •Does not allow for more detailed business dynamics analysis such as new business starts, business closings, and migrations. 8 Zip Code Level Data: County Business Patterns (and associated Zip Code Business Patterns) Data Where Do the Data Come From? •County Business Patterns (CBP) is an annual series that provides subnational economic data by industry on the number of establishments, employment during the week of March 12, first quarter payroll, and annual payroll. •Statistics are available on establishments at the U.S. level and by State, County, Metropolitan/Micropolitan Statistical Area (MSA), Combined Statistical Area (CSA), ZIP code, and Congressional District levels. •CBP basic data items are extracted from the Business Register (BR), a database of all known single and multi-establishment employer companies maintained and updated by the U.S. Census Bureau. CBP data are processed through various automated and analytical edits to remove anomalies, validate geographic coding, addresses, and industry classification. •Latest year available: 2020 Key Strengths •Well-known federal data source used for a wide variety of analyses of economic activity. •Zip code level employment data allow for more localized estimates of economic activity by detailed industry and occupation. •Provides establishment counts in addition to employment. Key Limitations •Requires projection of 2021 data since CBP data releases lag and latest year available is 2020. •Detailed NAICS industry codes often contain suppression, and a key change in reporting in 2017 that introduced broader suppression of data at detailed geography levels •“Beginning with reference year 2017, a cell is only published if it contains three or more establishments. In all other cases, the cell is not included in the release (i.e., it is dropped from publication)” •Often limited to 2-digit NAICS industry estimates to leverage highest quality data 9 Zip Code Level Data: LEHD Origin-Destination Employment Statistics (LODES) Data Where Do the Data Come From? •The Longitudinal Employer-Household Dynamics (LEHD) program is part of the Center for Economic Studies at the U.S. Census Bureau where states agree to share Unemployment Insurance earnings data and the Quarterly Census of Employment and Wages (QCEW) data with the Census Bureau through the Local Employment Dynamics Partnership framework. •LODES is “a partially synthetic dataset that describes geographic patterns of jobs by their employment locations and residential locations as well as the connections between the two locations” that leverages the LEHD program data to produce zip and census tract-specific estimates of resident and nonresident workers. Latest year available: 2019 Key Strengths •Federal data source often used for analyses of local economic activity and commuting patterns. •Census tract level employment data allow for highly localized estimates of resident and nonresident worker levels. •Provides highly specific geographic context for broad industry sectors and establishment types. Key Limitations •Requires projection of 2020 and 2021 data since data releases lag and latest year available is 2019. •Industry data is limited to broad 2-digit NAICS sector level so analyses of detailed or customized groupings of sectors requires further estimation of employment levels. •Some state-year combinations of data are not available due to historical unavailability (not relevant to Dublin context). 10 Recap of Broader Methodology for Evaluating Dublin’s Economic Landscape Using Updated Data •In addition to local employment data, TEConomy utilizes a variety of economic indicator databases to build a comprehensive picture of a region’s relative performance and strengths. •These databases each have specific strengths, limitations, and reporting contexts –the various narratives of Dublin’s economic activity shown across databases informs a broader “consensus” view on insights that can inform strategic planning. •Relying on a collection of data sources rather than any single source allows for a more robust analysis and helps fill in limitations/gaps in individual datasets. •Economic databases are often defined by the level of detailed geography they produce estimates for – can aggregate up to higher level geographies, but not straightforward to divide down to more detailed geographies. County Level Data: LightCast CEW MSAs and regional geographies Zip Code Level Data: TEConomy estimates using Census Zip Code Business Patterns + LEHD LODES Data Cities and neighborhoods Detailed Data on Dublin Establishments from Dublin Tax Department Specific groups of local business establishments Increasing level of detail about local geographies 11 Examining Dublin’s Economic Landscape Through the Lens of Various Data Sources •Using the various data sources, TEConomy’s analysis can “triangulate” toward strategic insights by looking across the narratives each data source is showing to generate conclusions. •Use mainstay county-level CEW data (via LightCast) to look at Greater Columbus trends to ground the broader economic narrative for the region over the last decade. •Use well-verified zip code data from CBP to examine higher level Dublin economic conditions and employment trends across more aggregate industries to show the recent economic narrative of the city. •Use statistical estimation methods to estimate employment in key regional clusters from the combination of zip code data, county-level data, and other federal data sources at the zip code level for Dublin as well as other zip code-defined benchmark regions. 12 •In the wake of the acute impacts of the pandemic, the Columbus MSA’s industry base has begun to recover, growing by 3.8% from 2020 to 2021. •While Dublin has also experienced a rebound, growing at 1.4% from 2020 to 2021, its recovery has been more mixed and overshadowed by the emergence of risks to its established industry base. •While several of Dublin’s industries aligned with regional clusters were more resilient to declines experienced during the pandemic, recovery has been uneven and more modest. •Highlighting the cumulative impact of these dynamics across the entire 2017-2021 period, most of Dublin’s industries aligned with regional clusters have experienced lower growth relative to regional and national trends. •Emerging workforce trends and declining emphasis on large office space locations present risks to Dublin’s key specialized industry clusters, which have traditionally been anchored by large employment footprint headquarters and business services operations. Key Takeaways from Dublin’s Economic Data Update Each section highlights these trends in further detail, but at a high level several narratives emerge from the data. 13 •Dublin continues to remain a regional leader in traded industry jobs and overall base of employment relative to other benchmark communities in Greater Columbus, but has begun to be outpaced by some benchmark communities in growth across key industry sectors. •Quality of place indicators remain high and the region is still anchored by several highly specialized industries with major employment footprints despite flatter recent growth. •Some evidence of emerging base of small and mid-sized companies in key technology industries that have the potential to drive future growth. •Forward-looking perspective presents several risks as well as potential opportunities against the backdrop of a highly dynamic and growing regional economy. •The IT workforce remains critical to the city’s competitiveness, but some evidence that Dublin is losing ground in growing this segment of workers. •Emergence of healthcare workforce and ongoing demand presents a potential growth opportunity. •New opportunities emerging for retaining scaling tech businesses and capturing a portion of the regional electronics industry buildout. •Risk of disruption to Dublin’s established industry base due to changing workplace models, socioeconomic and demographic shifts, and increasing competition from other regional communities. Key Takeaways from Dublin’s Economic Data Update, cont. Each section highlights these trends in further detail, but at a high level several narratives emerge from the data. Section 1: Updating Greater Columbus Regional Industry Cluster Analysis 15 Key Findings from Updates to Columbus’ Regional Industry Cluster Profile •The pandemic caused significant declines in the Greater Columbus economy in 2020, which led to a cumulative increase of just 0.3% in employment over the 2017-2021 time period. •However, the region showed evidence of a significant recovery over the 2020-2021 period, nearly matching national job growth rates across the entire private sector. •Several industry clusters such as Freight Transportation, Distribution, & Logistics as well as Creative & Design Industries significantly outpaced recent national growth in the last year. •Other major traded clusters such as Finance & Insurance, Medical Biosciences & Healthcare Services, IT & Computer Services, and R&D & Engineering Services have not recovered as quickly as the nation. •The impact of the pandemic was felt across many segments of the economy, although many industry clusters experienced stronger growth in the 2020-2021 period than the 2017-2020 period. •Three clusters (Freight Transportation, Distribution & Logistics; Tourism, Entertainment, and Arts; and Creative & Design Industries) grew at a faster rate than the average of all industries over the most recent one-year period. 16 Key Findings from Updates to Columbus’ Regional Industry Cluster Profile (cont.) •Despite the impacts of the pandemic, the Greater Columbus region has maintained highly specialized industry footprints in several clusters including: •Freight Transportation, Distribution, and Logistics (106k employees, 10.5% average annual growth 2017-2021) •Finance and Insurance (59k employees, -0.6% average annual growth 2017-2021) •Corporate HQs/Managing Offices (37k employees, 0.0% average annual growth 2017-2021) •Automotive Manufacturing (14k employees, -2.1% average annual growth 2017-2021) •TEConomy continues to track the evolution of the industry base, and examined whether any additional regional clusters have begun to emerge: •The Instrumentation & Electronic Products Manufacturing cluster is now included in analyses to establish performance in this area prior to completion of the Intel semiconductor plant. •While not yet a driver of significant regional activity, this cluster and its suppliers are expected to play an increasingly important role in the Greater Columbus Region’s future economic trajectory. 17 TEConomy’s Approach to Identifying Industry Clusters •Focus on Region’s “Traded” Industries: •Traded industries bring new wealth/income into the region by serving markets reaching beyond Greater Columbus’ and Dublin’s own residents and businesses. •Defining Industry Clusters: •Tailor definition of industry clusters to how industries in each regional economy relate to one another: •Some industry clusters share a common market that they serve. •Others are based more on shared “know-how” such as in life sciences or IT. •Identify Clusters of Comparative Advantage/Strength: •Examine industries at most detailed levels; enables understanding specific activities and targeting based on size, concentration/specialization and recent trends. •Consider regional supply chain relationships. •Refine analysis based upon specific activities of leading firms leveraging corporate databases, company websites, and direct outreach to understand products, services, applied technologies. 18 *Note: Employment trends for 2 clusters—Corporate HQs and IT & Computer Services—are from 2012-17 due to the reclassification of a large regional employer from 2011-12. Location quotients shown in bold font represent “specialized” industry concentrations greater than or equal to 1.20. Source: TEConomy’s analysis of U.S. Bureau of Labor Statistics, QCEW data via Lightcast data release 2022.4. Greater Columbus Industry Clusters Estab., 2021 Empl., 2021 Location Quotient, 2021 Greater Columbus Avg. Annual Employment Change U.S. Avg. Annual Employment Change 2010- 17*2017-20 2020-21 2017-21 2010- 17*2017-20 2020-21 2017-21 Total Private Sector 52,717 873,702 1.00 2.7%-0.8%3.8%0.3%2.2%-1.2%4.1%0.1% Freight Transportation, Distribution, & Logistics 4,577 106,109 1.47 2.8%10.1%8.9%10.5%2.3%1.6%4.7%2.4% Finance & Insurance 3,312 58,873 1.35 1.9%0.2%-3.0%-0.6%1.1%0.8%1.7%1.0% Medical Biosciences and Healthcare Services 1,237 52,717 0.90 4.6%-0.6%0.8%-0.3%1.8%1.4%1.8%1.5% Residential Healthcare Services 1,014 37,723 1.17 2.0%-0.5%-3.0%-1.1%1.8%-0.4%-3.5%-1.1% Corporate HQs/Managing Offices 443 36,925 2.21 3.4%-0.1%0.1%0.0%2.7%0.6%1.1%0.7% IT & Computer Services 3,166 20,740 0.82 1.6%0.0%2.2%0.5%5.8%4.4%6.1%5.1% Business Support Services 2,036 20,304 0.93 1.6%-1.0%-1.2%-1.0%3.9%0.9%4.2%1.7% Tourism, Entertainment, and Arts 850 14,708 0.70 4.5%-8.1%9.1%-4.4%2.3%-9.0%11.9%-4.6% Automotive Manufacturing 98 13,636 1.43 0.0%-2.9%0.4%-2.1%4.8%-2.3%6.9%-0.1% R&D & Engineering Services 755 11,671 0.93 1.1%0.1%2.0%0.6%0.7%2.0%3.2%2.4% Creative & Design Industries 881 6,754 1.08 -0.3%-1.8%4.9%-0.2%2.7%-2.5%2.8%-1.2% Instrumentation & Electronic Products Manufacturing 91 3,693 0.51 1.6%-2.4%-12.4%-4.7%-0.6%0.4%-0.6%0.1% The Greater Columbus Region Remains a Hub for Several Large and Specialized Industry Clusters Through 2021 Summary Employment Metrics for Greater Columbus Regional Industry Clusters, 2010-2021 The Columbus region has maintained high specializations in Corporate HQs/Managing Offices, Automotive Manufacturing, Finance and Insurance, and Freight TDL, though employment growth in these clusters generally lags the nation in the most recent period 19 How to Read Industry Cluster Profiles Vertical axis shows the industry cluster’s Location Quotient, a measure identifying the average concentration of industry employment in a region relative to national trends over the same time period Horizontal axis shows the industry cluster’s employment growth over the time period Bubble size indicates an industry cluster’s Employment Size at the reference time period Vertical axis crosses at growth of 0% Horizontal axis crosses at neutral index value of 1.0 An index value > 1.2 indicates that an industry cluster is highly specialized in its employment footprint for the region An index value < 1.0 indicates that an industry cluster is relatively under-concentrated in its employment footprint for the region A connected set of bubbles shows the latest position of an industry cluster’s profile as well as its movement over time: Earliest period Latest period 20 Position of Greater Columbus Industry Clusters Across the 2017-2020 & 2020-2021 Time Periods Source: TEConomy’s analysis of U.S. Bureau of Labor Statistics, QCEW data via Lightcast data release 2022.4. •While most of the region’s specializations have remained largely unchanged, employment declines associated with the Covid-19 pandemic in 2020 continue to affect most clusters. •Tourism, Entertainment & Arts experienced stronger recent growth than in the pre- pandemic period •Medical Biosciences & Healthcare Services and Automotive Manufacturing were hit hard by the pandemic but show signs of turning around in the recent period x = -12% x = -8% 21 Several of Columbus’ Major Industry Clusters Experience Higher Growth in the Most Recent Year Compared to the Period Ending in 2020, Although Some Sectors Have Not Yet Rebounded From Pandemic Impacts *Note: Employment trends for 2 clusters—Corporate HQs and IT & Computer Services—are from 2012-17 due to the reclassification of a large regional employer from 2011-12. **Smaller manufacturing clusters that were not added to the set of regional clusters in this update experienced similar decli nes over the period Source: TEConomy’s analysis of U.S. Bureau of Labor Statistics, QCEW data via Lightcast data release 2022.4. •At the end of 2021, eight industry clusters are experiencing flat or positive growth •However, only three clusters experienced employment growth greater than that across all industries Columbus MSA Employment Change by Industry Cluster Recap of Industry Targeting Analysis Decision Tree Approach 22 Is the industry a local specialization? From Year A – Year N did the local industry grow? Did local industry gain competitive share from Year A –Year N Current Strengths Current Opportunity Higher Priority Retention Targets Prospects limited due to external trends, but out- performing the U.S. Lower Priority Retention Targets Prospects limited due to local weaknesses Emerging Strengths Prospects limited due to weak base and external trends Prospects limited overall Universe of Industry Sectors in the Region LQ Analysis YES Current Specialization LQ Analysis NO Not Current Specialization Growth Analysis YES Employment Growth Growth Analysis NO No Employment Growth Growth Analysis YES Employment Growth Growth Analysis NO No Employment Growth Shift Share YES (Strong Performer) Shift Share NO (Lagging Performer) Shift Share YES (Constrained Performer) Shift Share NO (Poor Performer) Shift Share YES (Strong Performer) Shift Share NO (Lagging Performer) Shift Share YES (Constrained Performer) Shift Share NO (Poor Performer) Emerging Opportunity With average employment growth increasing in the year following impacts of the Covid- 19 pandemic, the industry targeting approach is applied to the full 2017-2021 period. Some industry clusters have shown signs of significant recovery, while others continue to show a diminished competitive position relative to national trends. Continued analysis of cluster performance will consider the context of national recovery. 23 Summary of Greater Columbus Industry Cluster Analysis Regional Cluster Estab., 2021 Empl., 2021 Estab. Change, 2017- 2021 Empl. Change, 2017- 2021 Average Wage Change, 2017- 2021 GRP Change, 2017- 2021 Cluster Storyline, 2017-2021 Pre-Pandemic Cluster Position (Targeting Decision Tree, 2017-2019) Recent Cluster Growth (2020-2021) Total Private Sector 52,717 873,702 13.7%1.3%19.4%20.0%-- Freight Transportation, Distribution, & Logistics 4,577 106,109 11.5%41.9%7.7%32.2% Ongoing specialization and continuing growth levels continuing beyond the acute impacts of the pandemic point to the cluster remaining a major economic driver for the region Current Strength Above average, exceeds U.S. Finance & Insurance 3,312 58,873 5.8%-2.5%20.3%20.1%Major employment base for the region, but potential weakening of competitive position in recent years Current Strength Declining, lags U.S. Medical Biosciences and Healthcare Services 1,237 52,717 46.8%-1.0%14.9%28.6% Cluster continuing to show the effects of the pandemic on overall employment, but ongoing growth being driven by expansion of new medical facilities across the region Emerging Strength Below average, lags U.S. Residential Healthcare Services 1,014 37,723 8.4%-4.3%22.8%11.7%Continuing to show impacts of pandemic on workforce, but represents major emerging need for aging populations Emerging Opportunity Declining, exceeds U.S. Corporate Headquarters/Managing Offices 443 36,925 16.2%-0.1%17.2%15.3% Remains a large, specialized industry for the region that anchors economic activity in the region, but risk of disruption from changing workforce trends in the wake of pandemic Current Strength Below average, lags U.S. IT & Computer Services 3,166 20,740 46.4%2.1%23.1%30.5% Lack of regional specialization and lower growth relative to the nation remain challenges, but some evidence of scale-up business activity and investment suggest future opportunities Emerging Opportunity Below average, lags U.S. Source: TEConomy’s analysis of U.S. Bureau of Labor Statistics, QCEW data via Lightcast data release 2022.4. Cluster Growth Greater Than U.S. Cluster Growth Positive, But Not Greater Than Overall U.S. Cluster Decline 24 Summary of Greater Columbus Industry Cluster Analysis Regional Cluster Estab., 2021 Empl., 2021 Estab. Change, 2017- 2021 Empl. Change, 2017- 2021 Average Wage Change, 2017- 2021 GRP Change, 2017- 2021 Cluster Storyline, 2017-2021 Pre-Pandemic Cluster Position (Targeting Decision Tree, 2017-2019) Recent Cluster Growth (2020-2021) Total Private Sector 52,717 873,702 13.7%1.3%19.4%20.0%-- Business Support Services 2,036 20,304 18.8%-4.1%27.5%12.6% Legacy industry cluster with uncertain future in wake of pandemic shifts in workplace models; increasing establishments with decreasing employment continue to suggest adaption or startup emergence Emerging Opportunity Declining, lags U.S. Tourism, Entertainment, and Arts 850 14,708 15.1%-17.5%25.1%-10.5%Some improvement from major declines experienced as a result of pandemic impacts, but recovery ongoing Emerging Strength Above average, lags U.S. Automotive Manufacturing 98 13,636 -4.6%-8.4%1.5%3.4%Declining employment footprint at small set of large operations even before pandemic impacts despite overall specialization Lower Priority Retention Target Below average, lags U.S. R&D & Engineering Services 755 11,671 14.8%2.3%10.6%12.5% Increasing establishments with middling growth suggests some diversification may be occurring, potential for expansion to serve specialized electronics and materials supply chain growth Emerging Strength Below average, lags U.S. Creative & Design Industries 881 6,754 21.9%-0.8%20.4%3.7% Higher establishment and wage growth with a smaller and declining industry base indicate specialized service providers have had success; however, not easy to scale for future growth Limited Prospects Above average, exceeds U.S. Instrumentation & Electronic Products Manufacturing 91 3,693 0.0%-18.8%9.3%-5.3% Employment declines and flat establishment growth demonstrate weak comparative position in an industry currently, but new regional manufacturing operations represent paradigm shift in industry base Limited Prospects Below average, lags U.S. Source: TEConomy’s analysis of U.S. Bureau of Labor Statistics, QCEW data via Lightcast data release 2022.4. Cluster Growth Greater Than U.S. Cluster Growth Positive, But Not Greater Than Overall U.S. Cluster Decline Section 2: Updates to Dublin’s Economic Performance and Workforce Data Section 2.1: Updates to Dublin’s Industry Clusters and Business Dynamics 27 Key Findings from Dublin’s Industry Cluster Profile and Business Dynamics Update •Pandemic-related employment declines in 2020 continue to have impacts on the local economy’s growth rates despite widespread improvement in 2021. •From 2017 to 2021, Dublin’s total employment base grew by an estimated 1.2% compared to 9.3% in the Greater Columbus region and 8.6% nationally. •Several of Dublin’s industries aligned with regional clusters were more resilient to declines experienced during the pandemic, but recovery has been modest. •Even in clusters where recent positive growth has offset pandemic impacts, Dublin’s recent growth has largely been outpaced by the region and the nation in 2021. •In spite of recent lackluster growth trends, Dublin continues to host a set of sizeable and highly specialized industry clusters that drive its local economy: •Corporate HQ/Managing Offices (4.5k employees) •Finance and Insurance (4.2k employees) •IT & Computer Services (3.9k employees, 2.7% growth 2020-21) •Business Support Services (2.9k employees) •R&D & Engineering services (1.4k employees) 28 Key Findings from Dublin’s Industry Cluster Profile and Business Dynamics Update (cont.) •Trends in total Dublin business dynamics show the city continues to outpace the broader Columbus region in its overall establishment growth trend with some signs of business dynamism: •Mix of industry sectors represented in business establishments has remained fairly consistent over the last decade. •Some evidence that small businesses are gaining in their share of overall establishments over time. •Based on estimates derived from the city’s tax department data, Dublin business formation rates appear to remain well above county, state, and national levels despite a sharp decline after 2016. •Several large employment industry clusters in Dublin appear to be at significant risk of disruptive impacts in coming years given uncertainty around trends in remote and virtual work and declining demand for office space development. •However, these risks may be offset by expanding healthcare industry cluster and broader growth impacts of new regional semiconductor manufacturing operations if Dublin can position itself competitively in these spaces. 29 Note: Automotive Manufacturing is not shown here due to limited size/presence in Dublin. Location quotients shown in bold font represent “specialized” industry concentrations greater than or equal to 1.20. Source: TEConomy analysis of U.S. Census Bureau’s County Business Patterns data for ZIP codes 43016, 43017; QCEW via Lightcast data release 2022.4 Summary Employment Metrics for Dublin Across Regional Industry Clusters Dublin Industry Clusters Empl., 2021 Location Quotient, 2021 Dublin Avg. Annual Employment Change U.S. Avg. Annual Employment Change 2014-17 2017-20 2020-21 2017-21 2014-17 2017-20 2020-21 2017-21 Total, All Industries 60,455 1.00 -0.1%0.0%1.4%0.3%2.0%-1.2%4.1%0.1% Business Support Services 2,878 2.31 -0.9%0.5%-0.3%0.3%3.5%0.9%4.2%1.7% Corporate HQs/Managing Offices 4,481 2.87 -5.0%6.4%-1.3%4.4%1.9%0.6%1.1%0.7% Creative & Design Industries 791 2.08 4.1%-5.9%2.4%-3.9%2.1%-2.5%2.8%-1.2% Finance & Insurance 4,179 1.42 -11.2%2.5%-4.5%0.7%1.6%0.8%1.7%1.0% Freight Transportation, Dist., & Logistics 2,903 0.68 4.5%-5.2%0.4%-3.8%2.1%1.6%4.7%2.4% IT & Computer Services 3,851 2.30 6.0%-3.9%2.7%-2.3%5.5%4.4%6.1%5.1% Medical Biosciences and Healthcare Services 2,955 0.72 -0.1%-1.4%0.0%-1.0%2.6%1.4%1.8%1.5% R&D & Engineering Services 1,373 1.68 6.2%-5.4%-0.4%-4.1%-0.3%2.0%3.2%2.4% Residential Healthcare Services 1,150 0.54 -3.2%9.2%1.6%7.4%1.6%-0.4%-3.5%-1.1% Tourism, Entertainment, and Arts 1,295 0.87 0.7%-1.8%4.4%-0.3%2.3%-9.0%11.9%-4.6% Dublin’s Regional Industry Clusters Were More Resilient to Declines Experienced During the Pandemic in 2020, but Recent Growth of These Industries in 2021 Was Relatively Flat City of Dublin Employment by Industry Cluster, 2010-2021 •Recovery in industry clusters has been limited: employment in key industries declined by 0.2% from 2020 to 2021, while growth for all other industries was 2.6% over the same period. •The share of total Dublin employment comprised by the industry clusters fell from 44% in 2020 to 43% in 2021. Source: TEConomy analysis of U.S. Census Bureau’s County Business Patterns data for ZIP codes 43016, 43017 31 Most Dublin Clusters Have Experienced Lower Growth than Regional and National Trends Over the 2017-2021 Time Period •Both Residential Healthcare Services and Corporate HQs/Managing Offices outpaced regional and national growth while other clusters lagged. Regional Employment Trends Among the Industry Clusters, 2017-21 Source: TEConomy analysis of U.S. Census Bureau’s County Business Patterns data; QCEW via Lightcast data release 2022.4 32 Growth Rates in Several Clusters Suggest That Initial Recovery From Pandemic Impacts Has Been Limited, Although Specializations Remain Similar to Pre-Pandemic Years Position of City of Dublin Industry Clusters, 2021 Source: TEConomy analysis of U.S. Census Bureau’s County Business Patterns data 33 Employment Growth in Most Industry Clusters has Rebounded After the Pandemic Impacts of 2020, Though Growth in Many Key Clusters Lags That of Regional Average •Several of the city’s clusters fared better than average when compared to Dublin’s total private sector declines between 2020 and 2021: •Tourism, Entertainment, and Arts •IT & Computer Services •Creative & Design Industries •Residential Healthcare Services •Freight Transportation, Distribution, and Logistics also grew but at a slower than average pace. Dublin Employment Change by Industry Cluster Source: TEConomy analysis of U.S. Census Bureau’s County Business Patterns data 34 Job Change in Broad Industry Sectors, 2020-2021 Several other key industries, like Professional, Scientific, and Technical Services and Wholesale Trade experienced lower growth rates. Broad Industry Sectors Traded Sector?Presence of Regional Clusters Dublin, 2020-21 Columbus MSA, 2020-21 Health Care and Social Assistance Medical Biosci. and Healthcare Svcs; Residential Healthcare Svcs 433 (5.1%)2,711 (2.0%) Professional, Scientific, and Technical Services yes Business Support Svcs; Creative & Design Industries; Freight TDL; IT & Computer Svcs; R&D & Engineering Svcs 153 (1.8%)2,257 (3.7%) Administrative and Support and Waste Management and Remediation Services Business Support Svcs; Freight TDL 296 (4.3%)2,587 (3.9%) Retail Trade Creative & Design Industries -23 (-0.3%)3,001 (3.1%) Accommodation and Food Services Tourism, Entertainment, and Arts 145 (3.2%)7,225 (9.4%) Management of Companies and Enterprises yes Corporate HQs/Managing Offices -59 (-1.3%)37 (0.1%) Finance and Insurance yes Finance & Insurance -195 (-4.5%)-1,823 (-3.0%) Information yes IT & Computer Services; Tourism, Entertainment, and Arts 33 (0.9%)112 (0.8%) Wholesale Trade yes Freight TDL; Medical Biosci. and Healthcare Svcs 41 (1.3%)82 (0.2%) Educational Services Creative & Design Industries 39 (1.8%)430 (3.2%) Construction 45 (3.8%)1,241 (3.0%) Arts, Entertainment, and Recreation Tourism, Entertainment, and Arts 61 (5.2%)1,389 (11.4%) Manufacturing yes Medical Biosci. and Healthcare Svcs 6 (0.6%)2,143 (3.1%) Transportation and Warehousing yes Freight TDL 57 (7.9%)7,904 (10.8%) Specific Industries Within Dublin That Show Strongest Growth From 2020 Include Transportation and Warehousing; Health Care and Social Assistance; and Arts, Entertainment, and Recreation Source: TEConomy analysis of U.S. Census Bureau’s County Business Patterns data; QCEW via Lightcast data release 2022.4 35 Summary of Dublin Industry Cluster Analysis Regional Cluster Empl., 2021 % of Columbus MSA Empl., 2021 Empl. Change, 2017- 2021 Cluster Storyline, 2017-2021 Pre-Pandemic Cluster Position (Targeting Decision Tree, 2017-2019) Recent Cluster Growth (2020- 2021) Total Private Sector 60,455 6.3%1.2%-- Business Support Services 2,878 12.4%1.1%Highly specialized employment base for Dublin, but ongoing declines and reliance on large footprint office spaces represents significant risk to long term growth Lower Priority Retention Target Below average, declining faster than Cbus MSA Corporate HQs/Managing Offices 4,481 12.5%17.6% Cluster remains highly specialized in the region, although post-pandemic job declines amidst a broader national expansion of remote/virtual work may be a warning signal for the city given the outsized employment concentration Current Strength Below average, declining faster than Cbus MSA Creative & Design Industries 791 15.7%-15.6%Cluster experienced a fairly high rate of job loss due to the pandemic, and outlook remains negative despite some recent improvement Lower Priority Retention Target Above average, growing slower than Cbus MSA Finance & Insurance 4,179 5.9%2.7% Remains a high employment and highly specialized cluster in Dublin; positive growth into 2020 offset somewhat by declines in 2021, shares similar risk of disruption from remote work trends Current Strength Below average, declining faster than Cbus MSA Cluster Growth Greater Than U.S. Cluster Growth Positive, But Not Greater Than Overall U.S. Cluster Decline Source: TEConomy analysis of U.S. Census Bureau’s County Business Patterns data 36 Summary of Dublin Industry Cluster Analysis (2) Regional Cluster Empl., 2021 % of Columbus MSA Empl., 2021 Empl. Change, 2017-2021 Cluster Storyline, 2017-2021 Pre-Pandemic Cluster Position (Targeting Decision Tree, 2017-2019) Recent Cluster Growth (2020- 2021) Total Private Sector 60,455 6.3%1.2%-- Freight Transportation, Dist., & Logistics 2,903 3.0%-15.3% Pandemic losses have not yet been offset by a return to growth; cluster remains unspecialized, and the region remains at a low share of the cluster footprint across the broader Columbus MSA Limited Prospects Below average, growing slower than Cbus MSA IT & Computer Services 3,851 18.5%-9.4% Strong growth in 2021 has offset some of the declines faced during the pandemic, but growth still falls short of pre-pandemic rates; high demand across the region for workforce may present a challenge for competitive position Lower Priority Retention Target Above average, growing slower than Cbus MSA Medical Biosciences & Healthcare Services 2,955 4.3%-4.1% Recent top line growth has been limited after pandemic-related declines, but buildout of new medical facilities complexes has increased healthcare workforce and created significant demand for further employment growth that could drive a new industry strength for the city Limited Prospects Below average, growing slower than Cbus MSA R&D & Engineering Services 1,373 11.8%-16.5% Employment remains specialized in the region despite recent declines, though growth potential is high with ongoing proximity to transportation research and manufacturing as well as imminent growth of electronics supply chain industry in the region Lower Priority Retention Target Below average, declining faster than Cbus MSA Tourism, Ent., & Arts 1,295 9.0%-1.1%Recent growth suggests strong recovery in the post-pandemic period Limited Prospects Above average, growing slower than Cbus MSA Cluster Growth Greater Than U.S. Cluster Growth Positive, But Not Greater Than Overall U.S. Cluster Decline Source: TEConomy analysis of U.S. Census Bureau’s County Business Patterns data 37 Measuring Dublin’s Establishment-Level Business Dynamics Trends •In addition to higher level employment trends, it is also important to track establishment level business dynamics patterns that give another perspective on the vibrancy of Dublin’s business environment. •Helps give indication of whether Dublin is attracting and retaining a robust ecosystem of business operations beyond just employment footprints. •New business creation is important for any local economy. However, nationally, a small share of firms account for a disproportionate share of economic output and employment. These firms tend to be in traded industries, which are highly aligned with the regional industry clusters emphasized in Dublin’s economic development strategy. •Creating positive business dynamics patterns with respect to these industries is key to generating long term sustainable economic growth. •Establishment data sources like County Business Patterns often do not provide detailed business dynamism measures at the zip code level, but overall patterns can give an indication of how Dublin is growing its base of businesses. •Overall trends in high level industry sectors used to show how the mix of businesses is evolving. •Information from the city’s tax department on new business filings can be used to approximate a measure of new business formation for comparison to regional trends. •Note: data limited to 2010-2020 time period of latest available establishment estimates from CBP. 38 Dublin’s Base of Business Establishments Has Continued to Expand Over the Past Decade, Outpacing Regional Growth •Despite plateau in growth from 2017-2018, the city continues to outpace the broader Columbus region in its overall establishment growth trend. Source: TEConomy analysis of U.S. Census Bureau’s County Business Patterns data 39 Dublin Business Establishments Have Largely Maintained a Consistent Mix Over Time, Grounded by Professional, Healthcare, & Financial Services as Well as Retail & Entertainment Businesses Source: TEConomy analysis of U.S. Census Bureau’s County Business Patterns data 40 Some Evidence for an Expanding Share of Small Businesses in Dublin Over Time •Businesses of 5 or fewer employees made up 48% of all establishments in 2010 compared to 50% in 2017 and 51% in 2020. •Several key mid-sized business segments have also increased in share over time. Source: TEConomy analysis of U.S. Census Bureau’s County Business Patterns data 41 Small Businesses Make Up a High Volume of Overall Establishments in Several of Dublin’s Key Industry Sectors in 2020 •Small businesses with fewer than 10 employees make up a disproportionate share of establishments in: •Professional, scientific, and technical services •Finance and insurance •Administrative and support services •Real estate and rental leasing •However, these establishments still tend to collectively drive low employment shares relative to large anchor companies in these sectors. Source: TEConomy analysis of U.S. Census Bureau’s County Business Patterns data 42 Dublin’s New Business Establishment Formation Rates Appear to Exceed Broader Regional Trends Despite a Drop Off in Activity Since 2016 •New business formation rates for Dublin were estimated from city tax department data on new business filings: •Includes all businesses with greater than one employee in city data; TEConomy cannot verify the coverage of tax department data relative to other data sources. •Census data on new business formation available for Franklin county as well the state and nation. •Dublin business formation rates experienced a sharp decline after 2016, but remains well above county, state, and national business formation rates. Source: TEConomy analysis of U.S. Census Bureau’s Business Dynamics Statistics; analysis of Dublin Tax Dept. data Section 2.2: Regional Benchmarking of Industry Clusters 44 Key Findings from Dublin’s Industry Cluster Position Benchmarking Update •Dublin remains a leader in the level of traded industry jobs and overall base of employment relative to benchmark communities in the region, but has lost ground in terms of the proportion of jobs in traded industries. •Dublin’s recent employment growth rates are fairly flat, while other benchmark communities have gained ground since pandemic declines. •Several key regional clusters represent competitive strengths for Dublin: •Business Support Services and IT & Computer Services, where Dublin has large and specialized bases of employment. •R&D and Engineering Services, where Dublin remains a high-volume employer, specialized leader amongst benchmark communities. •Medical Biosciences and Healthcare Services, where Dublin remains a leading high-volume employer amongst benchmark communities. •While still a specialized industry, Dublin’s recent performance in Corporate HQ/Managing Offices suggests weaker recovery in the 2020-2021 period. 45 Intra-Regional Benchmark Communities for Assessment •Benchmarking analysis was originally developed to better understand how Dublin is positioned and performing relative to selected comparison communities within the Greater Columbus region. •Twelve benchmark communities were identified in the previous studies for comparative analysis across industry cluster employment trends and positioning in “quality of life” industries. Benchmark Region Zip Codes Included in Region Bexley 43209 Downtown Columbus 43215 Easton 43219 Grandview Yard 43212 Hilliard 43206 New Albany 43054 Olentangy 43035, 43065, 43240 Polaris 43240 Polaris East (North Westerville)43082 Upper Arlington 43220, 43221 Westerville 43081, 43082, 43086 Worthington 43085 46 •Continuing the trends observed in earlier reports, Dublin remains a leader in overall base employment relative to benchmark communities, but the city’s proportion of jobs in traded sectors has fallen below that of several other regions. *Traded industries concentrate locally but sell products or services across geographic regions and in the global market as opposed to non-traded industries, which are driven more by providing goods and services to local populations. These firms account for a disproportionate share of economic output and employment nationally. Source: TEConomy analysis of Census County Business Patterns data Employment Composition of Dublin and Regional Benchmarks in 2021 Dublin Remains a Regional Leader In Traded Sector Employment 47 With Some Exceptions, Benchmark Regions Have Largely Remained Along Similar Growth Trajectories; Most Regions Have Experienced a Rebound in 2020-2021 Growth Rates After the Pandemic Source: TEConomy analysis of Census County Business Patterns data Dublin’s recent growth trends have flattened, with several other regions seeing stronger growth since 2017. Total Employment Growth Trends in Dublin and Regional Benchmarks, 2010-2021 48 Total Employment Growth Profiles of Benchmark Regions Source: TEConomy analysis of Census County Business Patterns data Dublin experienced a strong rebound in average annual growth in the 2020- 2021 period, however Dublin’s recent growth in total employment lags that of all benchmark communities. 49 Trends in Total Employment Show Signs of Recovery in Most Communities Following the Pandemic Source: TEConomy analysis of Census County Business Patterns data 50 Summary of Intra-Regional Benchmark Cluster Employment Profiles Regional Cluster Dublin’s Relative Position During 2017-2021 Period Business Support Services There has been little change in the relative position of communities with a sizable base in this cluster. New Albany remains the most highly specialized. Corporate HQ/Managing Offices Dublin’s employment declines from 2020-2021 are in line with other sizable communities, although some have experienced growth in recent years. Finance & Insurance With lower specialization and recent employment declines, Dublin’s position in this cluster remains comparatively delicate. Freight & TDL Aside from Easton, most regions have experienced low specialization and/or weaker growth. IT & Computer Services Dublin’s strong position has experienced a rebound in 2020-2021 growth, maintaining the city’s comparative advantages in this cluster. Medical Biosciences & Healthcare While Downtown Columbus is more highly concentrated than average in this cluster, the other benchmark communities retain low specializations despite some strong employment growth in the 2020-2021 period. R&D & Engineering Services Dublin’s specialization in this cluster remains high despite employment declines in the recent periods. Most benchmark communities have experienced stronger growth in 2020-2021. 51 Business Support Services Cluster Employment in Benchmark Regions Source: TEConomy analysis of Census County Business Patterns data New Albany remains the most highly specialized region in this cluster, but Dublin also has a high specialization. Dublin’s growth rates have remained fairly steady over time compared to other regions. X = 28% → 52 Benchmark Regions: Growth in Business Support Services Cluster Employment Source: TEConomy analysis of Census County Business Patterns data 53 Corporate HQ/Managing Offices Cluster Employment in Benchmark Regions While Dublin is highly specialized in this cluster with a sizable employment base, several other regions have higher location quotients, and some have greater employment. Dublin’s growth over the 2020-21 period is comparable to several other regions. Source: TEConomy analysis of Census County Business Patterns data X = 61% → Y = 15-16 ↑ 54 Benchmark Regions: Growth in Corporate HQ/Managing Offices Cluster Employment Source: TEConomy analysis of Census County Business Patterns data 55 Finance and Insurance Cluster Employment in Benchmark Regions Dublin remains specialized in this cluster, but a majority of the other regions show greater specialization. Dulbin’s job decline from 2020-21 is notable as other regions with sizable employment have experienced slower rates of decline or outright growth. Source: TEConomy analysis of Census County Business Patterns data 56 Benchmark Regions: Growth in Finance and Insurance Cluster Employment Source: TEConomy analysis of Census County Business Patterns data 57 Freight TDL Cluster Employment in Benchmark Regions Dublin’s low concentration in this cluster is similar to that of most other regions, although Dublin’s low growth from 2020-21 is weaker than most others. Easton is the only region that is highly specialized in this cluster, and also retains the largest employment base. Source: TEConomy analysis of Census County Business Patterns data Benchmark Regions: Growth in Freight TDL Cluster Employment Source: TEConomy analysis of Census County Business Patterns data 59 IT and Computer Services Cluster Employment in Benchmark Regions Dublin’s specialization in this cluster has declined in the recent periods, although it remains the only region to have a location quotient above 1.20 and a sizable employment base. Positive growth from 2020-21 is steady but falls short of other regions. Source: TEConomy analysis of Census County Business Patterns data Benchmark Regions: Growth in IT and Computer Services Cluster Employment Source: TEConomy analysis of Census County Business Patterns data 61 Medical Biosciences and Healthcare Cluster Employment in Benchmark Regions Dublin and Downtown Columbus remain only significant benchmark communities in biosciences space, though Dublin’s growth in each period has lagged that of Downtown Columbus. Source: TEConomy analysis of Census County Business Patterns data Benchmark Regions: Growth in Medical Biosciences and Healthcare Cluster Employment Source: TEConomy analysis of Census County Business Patterns data 63 R&D and Engineering Services Cluster Employment in Benchmark Regions While Grandview Yard is the most highly specialized region in this cluster, Dublin’s high LQ and large employment base make it comparatively strong. Dublin’s recent growth rate suggest an improvement over pandemic declines. Source: TEConomy analysis of Census County Business Patterns data X = 21% → Benchmark Regions: Growth in R&D and Engineering Cluster Employment Source: TEConomy analysis of Census County Business Patterns data 65 Detailed Summary of Employment Change by Cluster and Benchmark Community Between 2020 and 2021 Community Total, All Industries Business Support Services Corporate Headquarters/M anaging Offices Creative & Design Industries Finance & Insurance Freight Transportation, Distribution, & Logistics Dublin 816 (1.4%)-9 (-0.3%)-59 (-1.3%)19 (2.4%)-195 (-4.5%)12 (0.4%) Bexley 111 (1.6%)6 (7.4%)1 (5.1%)6 (12.7%)-9 (-6.1%)12 (3.2%) Downtown Columbus 2,034 (2.6%)115 (3.4%)41 (0.8%)47 (2.8%)-167 (-1.3%)64 (3.8%) Easton 1,043 (2.1%)45 (6.3%)1 (0.1%)13 (9.4%)-263 (-2.5%)204 (3.1%) Grandview Yard 531 (3%)12 (1.9%)-6 (-2.9%)11 (3.1%)243 (8.1%)31 (3.7%) Hilliard 175 (3%)6 (3.3%)-23 (-2.5%)9 (10.5%)-1 (-0.6%)-3 (-7.6%) New Albany 621 (3.3%)27 (2%)50 (1.7%)15 (7.2%)0 (0%)-14 (-1%) Olentangy 764 (1.8%)12 (1.5%)-103 (-1.2%)15 (4%)90 (4.1%)45 (4.6%) Polaris 503 (2%)34 (19.5%)-18 (-0.2%)9 (7.2%)120 (6.1%)-1 (-0.5%) Polaris East 809 (3.7%)-7 (-1.3%)152 (7.7%)2 (0.8%)-100 (-2.5%)17 (1.9%) Upper Arlington 294 (1.6%)11 (2%)-6 (-1.7%)37 (10%)-47 (-4.8%)0 (0%) Westerville 1,524 (3.1%)80 (5.2%)107 (3.4%)12 (2.8%)-28 (-0.3%)33 (1.9%) Worthington 621 (3.2%)82 (11.1%)32 (2.9%)43 (10.4%)-44 (-4.8%)49 (6.5%) Source: TEConomy analysis of Census County Business Patterns data 66 Detailed Summary of Employment Change by Cluster and Benchmark Community Between 2020 and 2021 Community Total, All Industries IT & Computer Services Medical Biosciences and Healthcare Services R&D & Engineering Services Residential Healthcare Services Tourism, Entertainment, and Arts Dublin 816 (1.4%)101 (2.7%)0 (0%)-5 (-0.4%)18 (1.6%)55 (4.4%) Bexley 111 (1.6%)6 (31.6%)0 (0%)2 (22.5%)-20 (-4.2%)4 (3.5%) Downtown Columbus 2,034 (2.6%)81 (4.7%)372 (6.5%)22 (2.6%)86 (4.2%)143 (7.8%) Easton 1,043 (2.1%)41 (7.1%)0 (0%)20 (5.5%)-34 (-4.9%)5 (0.7%) Grandview Yard 531 (3%)48 (13.2%)70 (10.1%)15 (2.4%)-14 (-4.2%)-3 (-2%) Hilliard 175 (3%)7 (14.4%)9 (20.8%)0 (0%)38 (9.6%)2 (2.5%) New Albany 621 (3.3%)1 (0.3%)43 (4.5%)-7 (-3.8%)2 (5.6%)40 (7.8%) Olentangy 764 (1.8%)9 (0.8%)-4 (-1%)18 (4.1%)140 (34.7%)77 (7%) Polaris 503 (2%)-18 (-6.3%)5 (8.9%)9 (3.3%)0 (0%)64 (10%) Polaris East 809 (3.7%)36 (5.6%)54 (18.3%)-3 (-1.6%)117 (24.5%)42 (8.3%) Upper Arlington 294 (1.6%)0 (0%)17 (4.7%)7 (2.4%)-15 (-1.8%)19 (7.3%) Westerville 1,524 (3.1%)28 (2.5%)69 (4.1%)5 (0.9%)255 (14.2%)23 (4.6%) Worthington 621 (3.2%)80 (12.5%)45 (7.3%)65 (20.6%)-29 (-3.2%)6 (4.6%) Source: TEConomy analysis of Census County Business Patterns data Section 2.3: Dublin’s Workforce and Talent Indicators 68 Key Findings from Dublin’s Workforce and Talent Indicators Update •Dublin continues to employ a higher proportion of highly skilled workers (generally requiring Bachelor’s and higher degrees) relative to both the Greater Columbus region and national trends, but this gap has narrowed since the previous assessment and may reflect broader acceleration of growth across the Greater Columbus region. •High demand occupations in the region over the 2017-2021 period include: •Software developers and other key IT roles, management and business support, education, and healthcare services in the high skills segment. •Sales representatives, technicians, administrative support, healthcare support, and computer support in the middle skills segment. •Customer service and home health and personal care aides in the low skills segment. •STEM workers in Dublin’s employment base remain highly concentrated in computing and IT occupations, but Dublin is showing signs of not keeping pace in growing and retaining this critical base of workers. •Ongoing importance of digital skills, regional market forces, and cross-cutting local demand continue to affirm the need for growing this workforce segment to meet the needs of all industries and maintain the city’s competitive position. •Emergence of healthcare industry as a major driver of recent job postings activity confirms the potential of the new industry cluster as a workforce driver. •Industries that were hardest hit by pandemic conditions are still exhibiting high demand, highlighting potential risks to recovery driven by workforce constraints particularly in the service industry. 69 Categorizing Dublin’s Occupation Skills Demand Categories •Three broad categories of occupations by typical entry-level educational, experience requirements: •High-Skilled Occupations: Generally requiring Bachelor’s & Higher degrees •Middle-Skilled Occupations: Requiring significant education, experience, and/or training beyond high school but less than a Bachelor’s*, includes: •High School Diploma + Moderate to Long-Term On-the-job Training •High School Diploma + Apprenticeship •Postsecondary non-degree award •Some College, no degree •Associate’s Degree •Low-Skilled Occupations:Generally requiring less than a high school diploma or a diploma and only short-term training, includes: •Less than a High School Diploma •High School Diploma + Short-term On-the-job Training 70 Dublin Continues to Be Driven by a Highly Skilled Workforce •Dublin continues to employ a higher proportion of high skilled workers relative to both the Greater Columbus region and national trends, but this advantage has begun to diminish over time. •Since the last update, the level of high skills talent has slightly lost share, but it is unclear if this represents a true decrease within the employment base or the impact of remote work on site location employment. Source: TEConomy’s analysis of U.S. Bureau of Labor Statistics (BLS), Occupational Employment Statistics (OES); TEConomy analysis of Census County Business Patterns data Occupational Employment by Skill Levels, 2021 71 •High demand for software developers and other key IT roles indicates ongoing importance of tech talent. •Management occupations, business support, healthcare services, and education workers remain in high demand. •Nursing and medical services occupations continue to represent potential opportunity to build healthcare workforce to serve new local businesses. High Skilled, “High Demand” Occupations in Dublin Represents those occupations where growth has outpaced Dublin’s overall growth since 2017 (1.3%), and outpaced the nation High Skilled Occupations (at least 150 employees in 2021) Dublin 2021 Jobs Dublin % Change 2017- 2021 Columbus MSA % Change, 2017- 2021 US % Change 2017-2021 Software Developers 1,649 29%29%26% General and Operations Managers 1,331 60%55%35% Registered Nurses 1,245 13%6%4% Management Analysts 634 30%28%17% Human Resources Specialists 630 50%39%31% Business Operations Specialists, All Other 495 108%49%69% Postsecondary Teachers 408 30%-1%-3% Network and Computer Systems Administrators 284 10%11%-15% Sales Managers 261 33%28%24% Medical and Health Services Managers 193 29%17%25% Secondary School Teachers, Except Special and Career/Technical Education 183 65%26%2% Graphic Designers 182 9%13%-5% Software Quality Assurance Analysts and Testers 180 27%28%26% Administrative Services Managers 154 27%25%21% Coaches and Scouts 151 6%-11%-13% Source: TEConomy’s analysis of U.S. Bureau of Labor Statistics (BLS), Occupational Employment Statistics (OES); TEConomy analysis of Census County Business Patterns data 72 •Sales representatives, technicians, administrative support, healthcare, and computer support occupations are driving demand for middle skilled workers. •Heavy presence of healthcare-related clinical and business support roles speaks to recent growth of this workforce in the city. Middle Skilled, “High Demand” Occupations in Dublin Represents those occupations where growth has outpaced Dublin’s overall growth since 2017 (1.3%), and outpaced the nation Middle Skilled Occupations (at least 150 employees in 2021) Dublin 2021 Jobs Dublin % Change 2017- 2021 Columbus MSA % Change, 2017- 2021 US % Change 2017-2021 Bookkeeping, Accounting, and Auditing Clerks 908 24%19%-1% Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products 813 17%27%-10% Sales Representatives of Services, Except Advertising, Insurance, Financial Services, and Travel 744 5%-2%4% Computer User Support Specialists 633 27%28%7% Nursing Assistants 540 9%1%-10% Maintenance and Repair Workers, General 530 22%15%6% Miscellaneous Assemblers and Fabricators 493 18%12%3% Heavy and Tractor-Trailer Truck Drivers 442 27%35%9% Licensed Practical and Licensed Vocational Nurses 344 6%-4%-10% Billing and Posting Clerks 327 12%3%-9% Medical Assistants 314 39%23%12% Automotive Service Technicians and Mechanics 232 17%11%-1% Preschool Teachers, Except Special Education 213 9%-4%-2% Computer Network Support Specialists 208 16%12%-5% Pharmacy Technicians 190 14%11%6% Teaching Assistants, Except Postsecondary 188 16%21%-6% Inspectors, Testers, Sorters, Samplers, and Weighers 186 6%15%3% Web and Digital Interface Designers 157 70%68%34% Source: TEConomy’s analysis of U.S. Bureau of Labor Statistics (BLS), Occupational Employment Statistics (OES); TEConomy analysis of Census County Business Patterns data 73 •Rebound in demand for customer service occupations throughout recent recovery from pandemic is driving growth in low skilled occupations. •Large increase in home health and personal care aides reflects potential expansion of residential healthcare services and medical facilities. Low Skilled, “High Demand” Occupations in Dublin Represents those occupations where growth has outpaced Dublin’s overall growth since 2017 (1.3%), and outpaced the nation Low Skilled Occupations (at least 150 employees in 2021) Dublin 2021 Jobs Dublin % Change 2017- 2021 Columbus MSA % Change, 2017- 2021 US % Change 2017-2021 Customer Service Representatives 2,409 11%10%1% Home Health and Personal Care Aides 1,565 27%11%16% Cashiers 1,304 11%8%-6% First-Line Supervisors of Office and Administrative Support Workers 696 10%10%0% Receptionists and Information Clerks 597 27%16%-2% Landscaping and Groundskeeping Workers 573 6%-3%-1% Security Guards 550 20%9%-4% Cooks, Restaurant 518 20%12%-2% First-Line Supervisors of Food Preparation and Serving Workers 493 23%16%15% Cooks, Fast Food 419 155%137%54% Driver/Sales Workers 352 69%78%13% Bartenders 215 16%12%-15% Telemarketers 210 38%22%-28% First-Line Supervisors of Transportation and Material Moving Workers, Except Aircraft Cargo Handling Supervisors 193 62%63%39% First-Line Supervisors of Mechanics, Installers, and Repairers 190 20%14%14% Property, Real Estate, and Community Association Managers 174 89%64%27% Cooks, Institution and Cafeteria 168 40%28%-1% Amusement and Recreation Attendants 157 43%28%-12% Hosts and Hostesses, Restaurant, Lounge, and Coffee Shop 150 2%-6%-17% Source: TEConomy’s analysis of U.S. Bureau of Labor Statistics (BLS), Occupational Employment Statistics (OES); TEConomy analysis of Census County Business Patterns data 74 Further Insights into the Recovery from Pandemic Within Dublin Occupational Employment from 2020-2021 Occupational Segment Dublin Employment, 2021 Change in High Skills Employment, 2020-2021 Change in Middle Skills Employment, 2020-2021 Change in Low Skills Employment, 2020-2021 Sales, Office, & Administrative 15,904 -84 156 -24 Healthcare 6,699 90 123 102 Business & Financial 6,006 312 -54 Food Services 4,684 2 7 Transportation & Materials Moving 4,514 -1 94 -95 Computing & IT 4,395 74 135 Management 4,086 478 13 59 Building & Grounds Services 2,068 7 60 Production 2,000 58 -4 Installation, Maintenance & Repair 1,969 -21 9 Education & Knowledge Workers 1,562 64 20 4 Community, Social Services & Legal 1,347 8 -1 -8 Arts, Entertainment & Media 1,298 -38 21 -16 Engineering & Architecture 1,146 -70 -4 Service Occupations 1,117 0 94 Construction & Extraction 1,089 31 -3 Protective Services 750 23 38 Math & Statistics 218 -1 Scientists 212 -12 Social Science 108 3 0 Scientific Technicians 104 -18 11 Change in Employment in Dublin’s Largest Occupational Segments by Skills Level, 2020-2021 (% change within segment and skills level) •Recent trends in occupational employment highlight mixed recovery from pandemic workforce declines: •Modest growth in low-skilled customer service occupations have not offset large declines experienced in these segments from 2019-2020 •Further decline in transportation and logistics occupations compound pandemic job losses •Larger increases in management and financial services jobs, but smaller changes throughout other occupational segments •Growth in middle skills jobs across several occupational segments is potential sign of nascent diversification of workforce Note: all cells where 2020-2021 change was greater than 50 employees highlighted; changes of over 200 jobs bolded. Source: TEConomy’s analysis of U.S. Bureau of Labor Statistics (BLS), Occupational Employment Statistics (OES); TEConomy analysis of Census County Business Patterns data 75 Dublin Continues to Employ Higher Levels of STEM Talent Within its Economy Relative to the Surrounding Region as well as the Nation •However, this represents a slight decline (1%) from Dublin’s historical shares of STEM talent (other regions have also remained relatively unchanged in their overall STEM shares over time). STEM Occupational Employment in Dublin as a Share of Total Industry Employment, 2021 Source: TEConomy’s analysis of U.S. Bureau of Labor Statistics (BLS), Occupational Employment Statistics (OES); TEConomy analysis of Census County Business Patterns data 76 STEM Employment in Dublin Remains Overwhelmingly Focused in the Computing & IT Segment, Even Relative to the Broader Columbus MSA •As evidenced by overall demand for tech talent, this segment still remains a critical occupational category to retain and grow to enable cross- cutting strength across industry clusters. STEM Occupational Employment in Dublin, 2021 Source: TEConomy’s analysis of U.S. Bureau of Labor Statistics (BLS), Occupational Employment Statistics (OES); TEConomy analysis of Census County Business Patterns data Note: STEM jobs defined by US BLS as science, technology, engineering, and math (STEM) occupations which include computer and mathematical, architecture and engineering, and life and physical science occupations, as well as managerial and postsecondary teaching occ upations related to these functional areas and sales occupations requiring scientific or technical knowledge at the postsecondary level. 77 Highlighting the Importance of IT Talent within STEM Occupations as a Cross-Cutting Enabler of Competitive Digital Skills Jobs •Dublin’s large share of computing and IT jobs within its STEM workforce remains a key competitive advantage amidst a landscape of increasing digitization across all industry sectors. •Brookings’ landmark 2017 study on the increasing digital skills being integrated across the U.S. workforce notes that relative to earlier decades “by 2016, the share of jobs requiring high digital skills had jumped to 23 percent. The share requiring medium digital skills rose to 48 percent. And in a huge shift, the share of jobs requiring low digital skills fell from 56 to 30 percent.” •Even outside of IT and Computing occupations which already span multiple industry clusters, many of Dublin’s leading middle and high skills workforce segments fall within occupation groups that require higher levels of digital skills. Source: Brookings Institute, Digitalization and the American workforce, 2017 Segments where Dublin has large employment footprints 78 Tech Talent Bases Like Dublin’s Continue to be Critical for Driving Industry Across the Greater Columbus Region •The Greater Columbus region ranked 31st out of 50 in CBRE’s 2022 Tech Talent Scorecard, which evaluated the largest markets in the U.S. and Canada by number of tech talent professionals across 13 metrics. •Highlights Columbus’ relative importance in this space even when measured against major coastal hubs, and the role this labor force will continue to play in Dublin’s growth moving forward. •The CBRE report emphasizes the role of talent and proximity to leading companies in further attracting industry: “Tech clusters with high concentrations of tech talent distinguish the top markets. These clusters typically form around preeminent universities that tend to invest the most in innovation and provide a steady flow of new talent for local companies. Tech clusters also form around leading companies that draw other companies to a region and support an innovative ecosystem that spawns new entrepreneurs and companies. Tech companies use these clusters for synergy and competition, thereby accelerating the innovation process.” •From both a digital skills and industry attraction standpoint, this talent base continues to play a critical role both within and across industries (see figure), reaffirming its importance to Dublin’s economic strategy and growth prospects.Source: CBRE, Scoring Tech Talent 2022 79 Longer Term Trends in IT and Computing Occupational Employment Growth Show That Dublin is Not Keeping Pace in Growing This Critical Workforce •While the city is starting from a stronger historical base of occupational employment in computing and IT, it has not maintained the growth of these occupations over time relative to the Greater Columbus Region, the state, or the nation. •In addition to aforementioned trends in digitization, ongoing trends in the shift towards hybrid and remote work will continue to have outsized implications for these occupations across Dublin’s industry base. Source: TEConomy’s analysis of U.S. Bureau of Labor Statistics (BLS), Occupational Employment Statistics (OES); TEConomy analysis of Census County Business Patterns data IT and Computing Occupational Employment Growth, 2010-2021 80 Using Job Postings to Further Inform Occupational Employment Demand from Dublin Companies •In addition to trends in the occupational mix of Dublin’s industry, another perspective of workforce dynamics leverages job postings data from Lightcast to analyze trends related to key hiring activity by local companies and the associated skill sets that are in demand from employers. •Job postings data analyzed covers 2020 through the start of Q4 in 2022 and collates unique job postings from cross- posted positions across several major websites and recruitment databases •Leverage more recent postings activity in order to track “real-time” demand •Only considered postings from companies as opposed to staffing agencies advertising on behalf of others •Postings activity shows a recovery from lower postings volumes in mid-2020 corresponding to recovery from pandemic. •Recent downturn in activity since Q3 2022 is a trend to monitor, but too soon to assess implications yet. Source: Lightcast Job Posting Analytics 2022.4 81 Occupations Represented in Dublin Job Postings Activity Show Emphasis on Sales, Office, & Administrative Positions, with Further Demand Driven by Computing & IT, Healthcare, & Business •Large rise in demand for healthcare workers which aligns with expansion of new healthcare facilities in Dublin. •Ongoing demand for retail and administrative staff in the wake of pandemic declines in these positions. •Increase in share of positions advertising remote work from pre-pandemic timeframe (2017-2019) where 3% of total postings offered remote option seems to be holding –overall remote positions ~5% from 2020 through Q4 2022. •However, postings data may still not fully capture prevalence of hybrid and other remote work models accurately so this remains a trend to watch going forward. •Broader market indications that remote work may create “resident” workforces which are not captured in demand indicators, which track the place of business employment (i.e., office location) rather than place of residence –remote workers may tend to be undercounted. Occupational Segment Unique Postings, 2020-2022 Q4 Ranking by Postings Volume, 2020- 2022 Q4 Ranking by Postings Volume, 2017- 2020 % of Positions Explicitly Advertised as Remote Average Number of Employers Competing Leading Occupations Within Segment (Median Advertised Salary) Sales, Office, & Administrative 16,343 1 1 2%51 Retail Sales ($27k), Customer Service Reps ($32k), Sales Reps, Wholesale ($47k) Computing & IT 9,408 2 2 5%165 Software Developers ($113k) Healthcare 7,391 3 6 1%17 Registered Nurses ($69k), Clinical Lab Techs ($36k) Management 7,080 4 3 3%58 Marketing Managers ($70k), Medical/Health Services Managers ($50k) Business & Financial 6,692 5 5 4%59 Management Analysts ($83k) Food Services 4,204 6 7 0%52 Fast Food & Counter Workers ($27k) Transportation & Materials Moving 2,662 7 4 0%19 Truck Drivers ($73k), Stockers & Order Fillers ($31k) Building & Grounds Services 2,330 8 12 0%39 Janitors and Cleaners ($28k) Installation, Maintenance & Repair 1,935 9 8 0%15 General Maintenance & Repair Workers ($40k) Arts, Entertainment & Media 1,305 10 11 6%12 Merchandise Displayers ($28k) Education & Knowledge Workers 1,285 11 10 0%10 Preschool Teachers ($29k) Production 1,267 12 14 1%5 Production Workers, All Other ($31k) Engineering & Architecture 1,251 13 9 2%16 Industrial Engineering Techs ($44l), Mechanical Engineers ($84k) Service Occupations 1,087 14 13 0%10 Childcare Workers ($30k) Math & Statistics 970 15 19 4%40 Data Scientists ($73k) Community, Social Services & Legal 797 16 15 3%12 Lawyers ($67k) Construction & Extraction 597 17 17 0%5 Construction Laborers ($39k) Protective Services 561 18 16 0%7 Security Guards ($31k) Scientists & Scientific Technicians 269 19 18 3%5 Life & Physical Science Techs ($42k) Source: Lightcast Job Posting Analytics 2022.4 82 In Prior Analysis, Most Industries Generating Job Postings Activity were Aligned with Regional Clusters with Service Industries Also Exhibiting Demand Source: TEConomy analysis of Lightcast Job Posting Analytics 2021.3 IT & Computer Services industries generating the highest level of activity in traded sectors, followed by Transportation, Distribution, & Logistics Dublin Unique Job Postings, 2017-2020 by Detailed Industry (boxes indicate individual industries, colors indicate alignment with regional clusters) 83 Source: TEConomy analysis of Lightcast Job Posting Analytics 2022.4 Dublin Unique Job Postings, 2020- 2022 Q4 by Detailed Industry (boxes indicate individual industries, colors indicate alignment with regional clusters) In Updated Analysis, Regional Clusters Still Generating Majority of Demand But Healthcare Postings Rising as Driver of Activity Alongside Other Traded Sectors Service industries also still exhibiting high demand, highlighting ongoing workforce needs to support quality of life industry sectors 84 Largest Traded Sector Companies Driving Demand Focused on Headquarters Operations, Sales & Distribution, Healthcare, and Business/Contract Services Largest Traded Sector Companies in Job Postings Activity for Dublin, 2020-2022 Q4 (companies with at least 200 job postings over period) Company Company Focus Unique Postings, 2020-2022 Q4 Median Advertised Salary Cardinal Health Healthcare supplies/logistics 3,339 $95,104 Fiserv Financial services 658 $174,848 Univar Solutions Chemical & ingredient distribution 627 $43,680 Quantum Health Healthcare coordination 584 $49,920 Labcorp Drug Development (formerly Covance)Biotech contract research 574 $32,128 XPO Logistics Transportation/logistics services 502 $44,800 Sedgwick Claims/insurance services 409 $35,456 Velosio (Microsoft partner)Software support/integration 388 $100,690 IGS Energy Natural gas & electric supplier 362 UnitedHealth Group Healthcare insurance 357 $57,344 Revel IT IT staffing & recruiting (Dublin HQ)339*$117,632 Online Computer Library Center Information services 314 $129,536 York Risk Services Group, Inc. (acquired by Sedgwick)Claims/insurance services 251 $24,000 SS&C Technologies Financial services 245 $69,888 Bound Tree Medical/Sarnova Emergency medical supplies/equipment 234 $37,504 Johnson Controls Infrastructure controls & automation 207 Insufficient data Sysco Restaurant/food wholesaler 201 $82,176 *Postings volume not necessarily indicative of local company demand generation given role as IT staffing company Source: Lightcast Job Posting Analytics 2022.4 •Companies in traded sectors with high volumes of postings largely centered around key headquarters operations in Dublin (Cardinal, OCLC) or around healthcare and other business services. •Continues to highlight reliance on key employers for generating large volume job demand as well as business services workforces that are vulnerable to disruption (e.g., digital/remote work and declining need for office space). •Significant additional job postings activity generated from non-traded industries such as fast food, retail, and grocery chains in the region as well as activity in healthcare/residential healthcare services. 85 However, Review of Major Dublin Employers Reveals Many Others are Generating Job Demand Across Both Traded & Non-Traded Sectors •Postings activity distributed across a number of sectors, with evidence of concentrations in: •Healthcare products & services •Contract research and engineering services, with some emphasis in materials science •IT services & solutions •Business support & financial services, with some emphasis in process management solutions •Logistics & distribution •As noted in prior analyses, higher job postings activity than reported FTE levels for several large companies can be an indication of significant turnover or shift to remote/non-local workforces. Company Reported Company FTEs*Unique Postings, 2020-2022 Q4 Cardinal Health, Inc.4,800 3,339 OhioHealth 2,000 1,289 Dublin City Schools 1,951 92 Sedgwick 1,622 409 + 251 York Risk Services OCLC 750 314 The Wendy’s Company 725 387 Quantum Health 600 584 Fiserv 600 658 Univar Solutions 550 627 Express Scripts 500 4 UnitedHealth 450 357 IGS Energy 450 243 LabCorp 430 574 XPO Logistics 400 502 Epiq 295 17 Smiths Medical 280 88 Covetrus 259 141 Community Choice Financial 250 80 Ashland 250 No postings reported Sarnova 250 223 WD Partners 226 105 HP Enterprise Group/DXC Technology 225 50 Johnson Controls 209 207 Genpact 200 43 ViaQuest 200 274 Nestle QA Center 190 No postings reported Veeva Systems 180 No postings reported Quest Software 180 151 Kinetics Noise Control 165 23 SS&C Technologies 160 245 Northwoods 150 41 Stanley Steemer 150 122 DNV-GL 140 131 Updox 130 118 INEOS 120 52 T-CETRA 120 178 Air Force One 102 No postings reported Revel IT 100 339** Selected City of Dublin Top Employers* Companies in Job Postings Activity for Dublin, 2017-2020 *Based on listing from city of Dublin Economic Development Website **Postings volume not necessarily indicative of local company demand generation given role as IT staffing company Source: Lightcast Job Posting Analytics 2022.4 86 Leading Job Titles Listed in Dublin Postings Activity Show Recent Demand on Healthcare & Service Industries •Several common needs in demand from local companies include: •Customer service staff across a number of different roles in retail and hospitality industries. •Evidence of significant demand for management staff in these industries as well as frontline workers. •Software engineers and developers, which remain the highest volume need in highly skilled positions. •Financial & business analysts and project management personnel. •Sales, administrative, and other business support staff. •Healthcare staff, including clinical, technician, and care management roles. Job Titles in Postings*Unique Postings, 2020- 2022 Q4 Number of Employers Competing Customer Service Representatives 541 150 Software Engineers 365 84 Housekeepers 347 49 Maintenance Technicians 321 81 Sales Associates 301 107 Business Analysts 235 89 Administrative Assistants 232 110 Retail Sales Associates 230 59 Registered Nurses 215 57 Project Managers 202 75 Financial Analysts 197 74 Servers 194 49 Receptionists 181 67 Bartenders 180 49 Nursing Assistants 177 33 Dishwashers 174 38 Hosts/Hostesses 172 40 Pharmacy Technicians 171 24 Medical Assistants 168 57 Cashiers 164 45 Assistant Managers 154 74 Licensed Practical Nurses 152 42 Accounts Payable Specialists 149 52 Shift Leaders 145 48 Accounts Receivable Specialists 145 41 Store Managers 142 57 Sales Representatives 141 44 Staff Accountants 140 44 CDL-A Truck Drivers 140 59 General Managers 138 55 Full Stack Java Developers 137 59 Delivery Drivers 135 42 Security Engineers 130 29 *Includes all listed job titles with 130 or more postings over time period; some job titles aggregated across duplicative titles Source: Lightcast Job Posting Analytics 2022.4 87 Evidence from Job Postings Further Reinforces the Need for Attracting & Retaining Tech Talent in Dublin to Meet Cross-Cutting Industry Demand •Most of activity around tech talent observed in job postings in Dublin over the last two years is generated by professional and technical services industries outside of core information industries most closely associated with traditional IT sector, highlighting ongoing demand by multiple industries for this talent base. Source: Lightcast Job Posting Analytics 2022.4 Percentage of Average Monthly Job Postings Activity for Computing and IT Positions by Industry in Dublin, 2020-2022 Q4 Section 3: Recent Developments in Dublin’s Industrial Innovation Activity 89 Highlights of Dublin’s Industrial Innovation Activity, 2021- 2022 •Building on the previous analyses, industrial innovation activity data was updated through latest available 2022 data to include more recent information. •Overall innovation activity remains limited, but some evidence of increasing base of companies generating interest from VC investors. •Dublin-based companies generated 131 new patents through 2022 since the economic development strategy report last analyzed industrial innovation activity. •Patents remain widely distributed across assignees –no primarily Dublin-based companies had more than 7 patents over the time period. •Locally-assigned patents across the past year were more focused on medical supplies technologies than in past assessments, with some additional presence of biopharmaceutical compounds. •Total of $16.5M in venture funding invested in 9 Dublin area companies since 2020 (see details on subsequent slides). •Total of 6 SBIR grants ($0.8M funding) awarded to 4 Dublin area companies since 2018 (see details on subsequent slides). 131 new Dublin-assigned patents $16.5M invested in 9 Dublin companies $0.8M SBIR funding to 4 Dublin companies 90 Dublin Companies Receiving Venture Capital Investment in 2021 through November 2022 Company Company Focus Deal Stage Amount ($M) Atreon Orthopedics Developer of orthopedic products to aid in repair of injury Early Stage VC 0.3 BridgeFi Developer of a cloud-based lending platform for loan and financing options Early Stage VC Undisclosed College Aid Pro Developer of college funding tool designed to help advisors deliver college planning strategies Angel (individual)1.0 DasiSimulations Developer of computational predictive modeling designed for improved patient outcomes and reduced costs Seed Round 3.4 EzeRX Developer and manufacturer of medical devices for management of curative and preventive healthcare Seed Round 0.7 FloQast Developer of cloud-based close management software to simplify business accounting Later Stage VC 110 Glo Developer of a mental training platform intended for youth athletes Early Stage VC Undisclosed Healthy Roster Developer of sports medicine injury documentation and communication platform Later Stage VC 2.1 IncludeHealth Developer of a digital musculoskeletal platform designed to provide smart fitness and rehabilitation services and products Later Stage VC 13.7 Koloma Developer of clean energy technology intended to decrease carbon emissions Early Stage VC 66.3 Matrix F.T.Developer of three-dimensional nanofiber scaffolds designed to help clients in the production of cultivated meat Early Stage VC Undisclosed Monitored Therapeutics Developer of remote patient management technology designed to provide treatment of respiratory diseases at home Later Stage VC 4.3 ParaGen Technologies Developer of a synthetic scaffold technology designed for tissue engineering Early Stage VC 4.5 reAlpha Operator of an online digital marketplace technology platform for short-term rental property investments Seed Round 6.1 RenovoDerm Developer of wound care products designed to enhance tissue regeneration Later Stage VC 0.5 Saama Analytics Developer of an enterprise platform intended to assist medical companies in risk decisions Later Stage VC 215 Source: PitchBook Data, Inc. 91 Dublin Companies Receiving SBIR Awards in 2021 through November 2022 Company Company Focus Number of Awards Amount ($) Asymmetric Technologies LLC Engineering services in defense and security tech 5 2,819,921 Guild Associates, Inc.Basic biological and materials research, systems manufacturing 5 1,940,574 Novaa Ltd Antenna and RF design (primarily military/defense-related)5 499,000 LSP Technologies, Inc.Laser peening equipment and services 3 849,993 SK Infrared LLC R&D of infrared sensors for military and commercial applications 1 140,000 Source: SIBR.gov Section 4: Update of Dublin’s Socioeconomic and Demographic Profile 93 “Quality of Place” Indicators •In addition to metrics that measure the strength of the local economy and labor force, additional “quality of place” indicators can often provide insights into competitive advantages in quality of life and desirability of communities. •These indicators largely fall into five broad categories: •Income distribution indicators, which indicate how much wealth resides in a community and how different socioeconomic segments are changing over time. •Housing indicators, which indicate the availability and desirability of places for a community’s population to live. •Education indicators, which, in conjunction with metrics related to education levels of talent and labor force, can show the availability of highly desirable education infrastructure and resident bases. •Public infrastructure indicators, which can demonstrate access to and investment in public resources and amenities which attract residents to a community and improve its desirability. •Other indicators of community vibrancy related to culture, arts, entertainment, and availability of services. •The time periods and geographies over which these indicators are available vary widely and introduce some limitations on what can be measured at hyper local levels. •For Dublin, only indicators in the first four categories are readily available –the most detailed level at which many arts and culture indices are estimated at the broader MSA scale. 94 Key Findings from Dublin’s Quality of Place Indicators Update •Dublin is showing some signs that it may be nearing an inflection point with respect to its population demographics, but continues to have a highly educated population and remains a key commuter workforce destination for the Greater Columbus region. •Population growth has recently begun to fall behind the broader Columbus region, reflecting aging resident populations and changing socioeconomic conditions. •The city has partially offset declines in commuter workforce between 2019 and 2020 more recently, but has not completely recovered to previous volumes. •The city continues to reflect a high quality of place through its high-income levels, home values, and desirable school quality. •As noted in previous assessments, some of the high wealth and lower affordability demonstrated in these indicators may have the unintended effect of “crowding out” future workforce attraction and retention in key technology-based occupations, particularly in light of changing workforce attitudes and employment models that were accelerated by pandemic conditions. •Real estate indicators show the city’s stock is retaining value, but a recent assessment notes that future growth potential is limited because most of Dublin’s developable land has already been built out. 95 Source: U.S. Census Bureau, Population Estimates. Region Avg. Annual Change, 2010-17 Avg. Annual Change, 2017-21 City of Dublin 2.2%0.7% Greater Columbus 1.3%0.8% Ohio 0.7%0.5% U.S.0.2%0.2% Dublin Demographics: Population Growth •Dublin’s population growth rate has fallen slightly behind the region in recent years, though still ahead of the nation. 96 Share of Population Ages 25 and Over by Educational Attainment, 2021 Source: U.S. Census Bureau, Decennial Census and American Community Survey. Region Some College, No Degree Associate’s Degree Bachelor’s & Higher City of Dublin 11.8%3.8%73.2% Greater Columbus 19.4%7.6%38.4% Ohio 20.0%8.8%29.7% U.S.20.0%8.7%33.7% Dublin Demographics: Educational Attainment •Dublin maintains its significantly higher share of highly educated residents, although recent declines suggest the gap will narrow somewhat. Change in Share of the Population with Bachelor’s Degrees or Higher, 2010-21 Region Avg. Annual Change, 2010-17 Avg. Annual Change, 2017-21 City of Dublin 0.49 % pt.-0.25 % pt. Greater Columbus 0.40 % pt.0.78 % pt. Ohio 0.44 % pt.0.62 % pt. U.S.0.43 % pt.0.70 % pt. 97 Source: BLS, Local Area Unemployment Statistics program data; Current Population Survey (National); data are not seasonally adjusted annual averages. Region Avg. Annual Change, 2010-17 Avg. Annual Change, 2017-21 City of Dublin -0.4 % pt.0.1 % pt. Greater Columbus -0.7 % pt.0.1 % pt. Ohio -0.8 % pt.0.0 % pt. U.S.-1.1 % pt.0.5 % pt. Dublin Economic Indicators: Unemployment Rates •The city’s unemployment rate remains comparatively low, with a growth rate far below that of the nation. 98 *Note: These zip-based total employment estimates include worker categories not estimated in the previous analyses shown in sect ion 2.0 and should only be used in the context of assessing overall commuting patterns Source: Lightcast data 2022.4 for zip codes 43016-17 Zip Code 2020 Total Employees* 2020 Resident Workers 2020 Net Commuters 2021 Total Employees* 2021 Resident Workers 2021 Net Commuters Difference in Total Employees, 2020-2021 Difference in Resident Workers, 2020-2021 Difference in Net Commuters, 2020-2021 43016 22,040 23,149 -1,109 22,738 23,703 -965 698 554 144 43017 41,979 26,026 15,953 43,330 26,713 16,617 1,351 687 664 Total 64,018 49,175 14,844 66,068 50,415 15,652 2,050 1,240 808 Dublin’s Regional Commuting Patterns, 2021 •Despite the ongoing impact of remote work on workplace location, Dublin continues to serve as a commuting workforce destination for the Greater Columbus Region. •However, net commuting volumes remain at lower levels than in prior analyses, indicating that lasting impacts from shifts in workplace destination patterns that are likely to persist despite some recovery from declines in 2021. •Notably, zip code 43016 now displays a net negative commuting trend, indicating a potential sign of new trends that may affect the larger employment base in zip code 43017. 99Source: Lightcast data 2022.4 for zip codes 43016-17 Dublin’s Regional Commuting Patterns, 2021 (cont.) •Many of the declines in commuter volume observed over the 2019-2020 period have been partially reversed, particularly in neighboring zip codes that showed the largest impact on workers. •Outbound commuting similarly increased in volume relative to the 2019-2020 period, but the impact was more concentrated on adjacent zip codes potentially reflecting changing worker preferences for highly proximate workplaces. 100 Source: U.S. Census Bureau, Decennial Census and American Community Survey. Region Avg. Annual Change, 2010-17 Avg. Annual Change, 2017-21 City of Dublin 2.4%3.3% Greater Columbus 2.1%5.1% Ohio 2.2%4.8% U.S.2.0%5.2% Dublin Demographics: Per Capita Income •Per capita income in Dublin remains high compared to the Greater Columbus Region and the nation. 101 Source: American Community Survey, US Census Bureau Measure Avg. Annual Change, 2010-17 Avg. Annual Change, 2017-21 Mean Income 2.8%2.6% Median Income 1.9%3.3% Dublin Demographics: Mean and Median Household Incomes •Long-term income growth had slowed somewhat due to the effects of the pandemic in 2020, but gains in 2020-21 brought annual growth back to a similar level as the previous period. •Despite the pandemic, both mean and median income continued to increase through 2021. 102 Dublin Demographics: Household Income Distribution •Consistent with previous economic reports, the household income distribution in Dublin continues to shift towards higher income brackets. •This risks “crowding out” middle income brackets over time and impacting perception of affordability for new workforces that the city needs to capture a share of in order to grow technology-based jobs. Source: American Community Survey, US Census Bureau 103 Source: Neighborhood Scout Dublin Real Estate Indicators: Home Price Distribution •Home prices in Dublin continue to skew significantly higher than the Greater Columbus region, with little variation from the previous analyses. 104 Dublin Real Estate Indicators: Home Sales Additional real estate insights are incorporated from the 2022 Housing Study & Strategy report commissioned by the City of Dublin: •About 72% of home sales in Dublin are single-family detached units, while condos comprise another 25% of sales. •Single-family detached homes are also driving overall price increases, with a median sales price of at least twice that of other home types due in part to significantly larger square footage. •Homes built between 1980 and 1999 comprise about 58% of home sales, however homes built in 2000 and later have higher median sales prices. •The study also concludes that future growth potential is limited because most of Dublin’s developable land has already been built out. Breakdown of Home Sales in Study Area (2017 to 2021) Note: The Study Area as defined in the housing report consists of the City of Dublin as well as peripheral areas that constitute Census Tract boundaries Source: 2022 Housing Study & Strategy report prepared by Urban Partners for the City of Dublin Single Family Sales by Age of Home, Study Area (2017 to 2021) 105Source: American Community Survey, US Census Bureau Real Estate Indicator Dublin, 2010 Dublin, 2021 Columbus, 2010 Columbus, 2021 Median Home Value $341,600 $415,900 $138,700 $213,600 Housing Vacancy Rate 6.1%9.1%14.0%6.9% Renter Percentage 33.4%38.3% Real Estate Indicator Dublin Avg. Annual Change, 2010-17 Dublin Avg. Annual Change, 2017-21 Columbus Avg. Annual Change, 2010-17 Columbus Avg. Annual Change, 2017-21 Median Home Value 1.0%4.1%0.3%7.1% Housing Vacancy Rate -0.2 % pt.5.5 % pt.-0.5 % pt.-1.7 % pt. Dublin Real Estate Indicators: Housing Stock •Dublin real estate value has continued to grow, but housing vacancy has also increased. •The Columbus MSA has experienced stronger trends in both median home value and housing vacancy. 106 Source: National Center for Education Statistics (NCES). Dublin City Schools, 2021 Dublin Change, 2017-21 Franklin County Schools, 2021 Franklin County Change, 2017-21 Total Students 16,254 3.4%196,630 -0.2% Classroom Teachers 838 2.9%11,811 10.8% Student/Teacher Ratio 19.4 0.1 16.6 -1.9 Total Schools 23 21.1%405 13.2% Schools per 100k Population 48 11.6%31 4.8% Dublin Education Indicators: School System Statistics •Dublin schools have performed well with stronger growth rates than the Columbus MSA in three of five key metrics. 107 *Includes Worthington, Westerville, New Albany, Hilliard, Olentangy, Upper Arlington, and Bexley. Source: Ohio Department of Education. Ohio School Report Card Grades Dublin City Schools Columbus City Schools Average of Other Leading School Districts in Region* Achievement 4.0 2.0 4.6 Progress 5.0 3.0 4.9 Gap Closing (meeting expectations for vulnerable students) 5.0 3.0 5.0 Graduation 5.0 1.0 4.3 Early Literacy 3.0 1.0 4.0 Dublin Education Indicators: Ohio School Report Card Grades, 2021 •Report card data resumed for the 2021-22 school year, though the scoring system has been changed from letter grades to stars (out of 5). •Dublin schools continue to outperform Columbus city schools, but performance against benchmark regions is mixed. 108 Source: Ohio Department of Education. School Characteristics Dublin City Schools, 2021 Dublin Change, 2017-21 Columbus City Schools, 2021 Columbus Change, 2017-21 Percent of Teachers with a Master’s Degree 72.7%-2.0 % pt.64.9%1.6 % pt. Percent of Funds Spent on Classroom Instruction 75.6%1.9 % pt.65.5%0.6 % pt. Operating Spending per Pupil $12,846 18.4%$13,971 36.2% Dublin Education Indicators: Selected School Characteristics •Dublin’s relative growth performance continues to be mixed. •Recent growth in operating spending per pupil is strong but has been overtaken by Columbus city schools. 109 Source: American Community Survey, US Census Bureau. Indicator Type Indicator Dublin Dublin Change, 2017-20 Columbus MSA Columbus Change, 2017-20 Transportation Proportion of workers whose travel time to work is 20 minutes or less 36.6%-1.8 % pt.40.5%-1.0 % pt. Utilization of public transport by population commuting to work 0.5%-0.03 % pt.1.5%-0.20 % pt. Connectivity Percent of households with broadband internet access 97.5%1.8 % pt.89.1%6.49 % pt. Selected Infrastructure Indicators •Dublin’s performance in key infrastructure indicators remains similar, growth rates suggest the gap with Columbus is closing in some areas. Appendix B: City of Dublin Economic Development Survey 2 Survey elicited 112 responses, with roughly 80% representing the private- sector businesses critical to Dublin’s economic development success. Source: TEConomy Analysis of Dublin Economic Development Survey Results Note: “Private-Sector Leadership” refers to 82 responses from industry leaders, limited to a single response for each company.For Internal Discussion Only –Not for Distribution 3 Roughly half opened their Dublin offices in the 2010’s or later, and most had fewer than 50 employees. Source: TEConomy Analysis of Dublin Economic Development Survey Results Note: Only refers to private sector companies and limited to a single response for each company.For Internal Discussion Only –Not for Distribution 4 Most private sector leaders indicated they hired employees in 2022, with a good mix of “new” and “replacement” workers •Among the 82 private sector leaders surveyed: •63 companies reported at least one new hire in 2022 •Number of new hires ranged from 1 to 600 employees •Average: 36 hires •Median: 7 hires •These companies combined for 2,281 new hires in 2022 in Dublin •On average, approximately 38% of these were “new” employees (867) vs. replacement employees (1,332) For Internal Discussion Only –Not for Distribution Source: TEConomy Analysis of Dublin Economic Development Survey Results Note: Only refers to private sector companies and limited to a single response for each company. 5 Among private sector leaders surveyed, 37% indicated they were now fully in-person, with more than two-thirds in the office 3+ days per week. For Internal Discussion Only –Not for Distribution Source: TEConomy Analysis of Dublin Economic Development Survey Results Note: Only refers to private sector companies and limited to a single response for each company. 6 Roughly 90% of leaders surveyed said their employees preferred hybrid work, with more than half choosing to be in the office 3+ days a week. For Internal Discussion Only –Not for Distribution Source: TEConomy Analysis of Dublin Economic Development Survey Results Note: Only refers to private sector companies and limited to a single response for each company. 7 Finding employees –as well as retaining them and keeping them engaged –ranked as the highest workforce challenges among private sector leaders. Source: TEConomy Analysis of Dublin Economic Development Survey Results Note: Includes all survey responses For Internal Discussion Only –Not for Distribution 8 Dublin’s business environment ranks favorably: fewer than 20% of respondents felt other Central Ohio areas were more attractive. Source: TEConomy Analysis of Dublin Economic Development Survey Results Note: Includes all survey responses For Internal Discussion Only –Not for Distribution 9 Barriers most frequently cited as concerns include burdensome regulations, a lack of affordable housing, and challenges with finding qualified staff. For Internal Discussion Only –Not for Distribution Source: TEConomy Analysis of Dublin Economic Development Survey Results Note: Includes all survey responses 10 Specific Regulatory Barriers Cited •“It is very difficult to develop/re-develop commercial property with Dublin restrictions. Additionally, costs are prohibitive as well.” •“Building and zoning are very difficult to work with due to lack of transparency and providing needed information. It feels like we are always met with roadblocks instead of solutions making it difficult to improve buildings.” •“It is difficult to develop in Dublin because of the design related requirements and length and difficulty in getting through the city process” •“Planning and zoning.” •“Length of time and cost to develop concepts.” •“Lengthy and cumbersome approval processes.” •“Lots of regulations on signage, building composition, etc.” •“Slowness of approval process affects product to market timelines and cost." •“Sign restrictions are ridiculous. My company launched an international rebranding campaign and Dublin earned the dubious distinction as the hardest city in the US to work with and one of the hardest in the world.” •“The City needs to do a better job of responding and processing permits faster. Companies expect the built-out process to be faster than what is occurring within the City of Dublin.” •“The time and steps required to get from site selection to building complete and ready to occupy is long and complicated which makes it hard to give a tenant a firm commitment they can rely on.” •“Time to obtain approvals due to very active/involved City departments” •“Dublin economic department seems to have fallen off the earth -no out reach to us as in years past. Unrealistic planning rules prevent upgrade improvements. Seems like after bridge park things have stopped.” For Internal Discussion Only –Not for Distribution Source: TEConomy Analysis of Dublin Economic Development Survey Results Note: Includes all survey responses –does not include responses indicating no challenges or NA 11 Specific Utility Challenges Cited •“Better broadband opportunities with faster rates” •“Better internet with reliability” •“High speed internet choices” •“Internet -We do not have many options at both of our locations.” For Internal Discussion Only –Not for Distribution Source: TEConomy Analysis of Dublin Economic Development Survey Results Note: Includes all survey responses –does not include responses indicating no challenges or NA 12 Additional Looks By Industry Grouping By Company Size 13 Remote Work Arrangements by Company Size: One shift since COVID-19 is that relatively few of the large companies are offering an exclusively in-person option. For Internal Discussion Only –Not for Distribution Source: TEConomy Analysis of Dublin Economic Development Survey Results Note: Only refers to private sector companies and limited to a single response for each company. 14 Remote Work Arrangements by Industry: Since the COVID-19 Peaks, Advanced Manufacturing, Business Services, and Real Estate have seen considerable returns to in-person work. For Internal Discussion Only –Not for Distribution Source: TEConomy Analysis of Dublin Economic Development Survey Results Note: Only refers to private sector companies and limited to a single response for each company. 15 Remote Preferences by Industry: Persistence of remote-work in business services, while growing in- person in advanced manufacturing, healthcare, R&D services. For Internal Discussion Only –Not for Distribution Source: TEConomy Analysis of Dublin Economic Development Survey Results Note: Only refers to private sector companies and limited to a single response for each company. 16 Remote Preferences by Company Size: According to leaders regardless of company size, their employees seem to prefer a hybrid workplace. For Internal Discussion Only –Not for Distribution Source: TEConomy Analysis of Dublin Economic Development Survey Results Note: Only refers to private sector companies and limited to a single response for each company. 17 Future Remote Plans by Company Size: Smaller companies are more likely to suggest they have no plans to allow remote work. For Internal Discussion Only –Not for Distribution Source: TEConomy Analysis of Dublin Economic Development Survey Results Note: Only refers to private sector companies and limited to a single response for each company. 18 Future Remote Plans by Industry: Compared to other industries, business services and tech-related companies both plan to expand remote work options. For Internal Discussion Only –Not for Distribution Source: TEConomy Analysis of Dublin Economic Development Survey Results Note: Only refers to private sector companies and limited to a single response for each company. 19 Workforce Challenges by Industry: Workforce challenges tend to cut across industries. Source: TEConomy Analysis of Dublin Economic Development Survey Results Note: Only refers to private sector companies and limited to a single response for each company.For Internal Discussion Only –Not for Distribution 20 Workforce Challenges by Company Size: Challenges with employee attraction, retention, and engagement cut across companies of all sizes –though larger firms note challenges related to DEI. Source: TEConomy Analysis of Dublin Economic Development Survey Results Note: Only refers to private sector companies and limited to a single response for each company.For Internal Discussion Only –Not for Distribution 21 Barriers to Growth by Industry: Healthcare-related businesses faced the largest challenges with finding workers and affordable housing; regulations challenge the land developers. For Internal Discussion Only –Not for Distribution Source: TEConomy Analysis of Dublin Economic Development Survey Results Note: Only refers to private sector companies and limited to a single response for each company. 22 Barriers to Growth by Company Size: The top three barriers were generally the same for small and large businesses, with mid-sized companies struggling with access to capital. For Internal Discussion Only –Not for Distribution Source: TEConomy Analysis of Dublin Economic Development Survey Results Note: Only refers to private sector companies and limited to a single response for each company. Dublin Semiconductor Supply Chain Positioning Study Prepared for:May 30, 2023 NEWMARK GLOBAL STRATEGY & CONSULTING NEWMARK 1.Project Team & Background 3 2.Semiconductor Supply Chain Fundamentals 8 3.Semiconductor Business Location Dynamics 18 4.Semiconductor Sector Property Types 28 5.Dublin Planning District Assessments 40 6.Semiconductor Sector Attraction Practices 52 7.Promoting Dublin’s Value Proposition 59 8.Recommendations 64 2 TABLE OF CONTENTS NEWMARK CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 1. Project Team & Background 3 NEWMARK Global Reach: Locally Expert, Globally Connected CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 4 Complete suite of services is tailored to every type of client: –Brokerage & Transaction Management –Lease Administration & Audit Services –Global Strategy & Consulting –Workplace Strategy & Human Experience –Technology & Innovation –Program & Project Management –Facilities Management 99% of your locations directly serviced by Newmark Entrepreneurial spirit and future-facing vision. One of the world’s leading commercial real estate platforms. 4 Delivery of Services: Global delivery in over 100 countries with best in market commitment 100+ countries 500M square feet managed worldwide ~140 offices worldwide 92 years in business $3.0B+ annualized revenue NEWMARK Integrated Service Delivery CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 5 Newmark is a full-service firm with both consulting and delivery capabilities at every stage of the real estate lifecycle. Newmark Global Strategy will be the lead service for this engagement and can support downstream execution of the project as needed. NEWMARK •Strategic Portfolio Assessment •Cost Reduction Strategy •Asset Optimization & Capital Planning •M&A Due Diligence and Integration Portfolio Strategy 10-30% $4B+ OPERATING COST SAVINGS ACROSS ALL ENGAGEMENTS IN ECONOMIC INCENTIVES NEGOTIATED 400 +15 -20 AVG YEARS OF CONSULTANT EXPERIENCE What Do We Do: We are management consultants who help companies determine what facilities they need, where they are needed, and how those facilities’ operating conditions should be organized geographically, functionally, and socially while optimizing costs to the business. 10-30% OPERATING COST SAVINGSACROSS ALL ENGAGEMENTS $15B+ IN ECONOMICINCENTIVES NEGOTIATED 500+ CLIENTS ACROSS MULTIPLE INDUSTRIES 15-20 AVG YEARS OFCONSULTANT EXPERIENCE •Workplace Scenario Planning and Venue •Space Utilization and Efficiency Benchmarking •Facility Master Planning •Workflow and Business Process Improvement •Change Management Workplace Strategy and Human Experience •Program Research and Feasibility •Negotiation and Optimization Strategy •Compliance Management •Portfolio-Wide Incentives Evaluation Economic Incentives Advisory •Corporate Location Strategy & Site Selection •Relocation, Expansion and Consolidation Feasibility •Community & Site Due Diligence •Workforce and Labor Analytics Location Strategy & Site Selection •Supply Chain Strategy &Analytics •Logistics &Network •Optimization •Operations Strategy & Warehouse Design •Outsourcing,Spend & Vendor Management Supply Chain Optimization •Strategic Planning and Target Industry Analysis •Workforce and Talent Development •Asset-Based Community Development Advisory •Stakeholder and Community Engagement Economic Development Consulting CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY Global Strategy & Consulting 6 NEWMARK 7 Project Team –Newmark Experts Gregg Wassmansdorf Senior Managing Director Kevin Nesburg Managing Director Robert Hess Vice Chairman Kim Moore Executive Managing Director Brian Peterson Managing Director Gillian Apps Senior Analyst CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY NEWMARK CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 2. Semiconductor Supply Chain Fundamentals 8 NEWMARK Semiconductor Industry: What’s the big deal about something so small? CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 9 Why do we need Semiconductors? What is a Semiconductor? Semiconductors are an essential component of electronic devices,enabling advances in communications, computing, healthcare, military systems, transportation, clean energy, and countless other applications. The industry lives—and dies—by a simple creed: smaller, faster, and cheaper. A semiconductor is a material that can either conduct or insulate the flow of electricity. Today, the term “semiconductor” is frequently used to refer to computer chips, which contain semiconductors, resistors, capacitors, and other components needed to carry out specific processes, such as reading barcodes, operating a camera lens, receiving wireless signals, or coordinating the operations of other chips. Source: Jeremy Waterhouse, Pexels. NEWMARK Semiconductor Manufacturing Process CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 10 The semiconductor manufacturing process consists of three main stages: design; fabrication; and assembly, testing, and packag ing. The largest portion of value added in the manufacturing process occurs in the design and fabrication stages. The fabrication and assembly, testing, and packagin g stages are capital intensive and require expensive specialized machinery. Design Front-End Fabrication Assembly, Testing, & Packaging Companies invent new products and conceive of circuit designs for manufacture. Semiconductor circuit designs are etched onto silicon wafers. Wafers are sliced into individual chips, tested, and packaged. High labor intensity. Typically not completed in U.S. Roughly 90% of the industry value added occurs in these two phases. Requires significant capital investment. NEWMARK Semiconductor Industry Product Types CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 11 Microprocessors Used for the interchange and manipulation of data in computers, communication devices, and consumer electronics. Most technically advanced, highest cost, and highest profit margin. Analog Devices Used to translate analog signals to digital form. Memory Devices Used for storing information on computers, smartphones, tablets, and other devices. Less technically advanced than microprocessors. High volumes, low profit margins. Subject to boom-bust cycles. Optoelectronics, Sensors, and Discretes (OSD) Used to generate or sense light, such as in traffic lights or cameras. The semiconductor industry has many product types and applications. There are four major categories of products that semiconductor businesses manufacture. NEWMARK Semiconductor Foundries Manufacture computer chips. Major players Taiwan Semiconductor Mfg. Corp. (TSMC) UMC Global Foundries Semiconductor Mfg. Intl. Corp. (SMIC) Fabless Manufacturers Design computer chips. Contract their manufacturing to a foundry. Major players AMD Apple Qualcomm Nvidia Semiconductor Manufacturing Business Models CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 12 Some semiconductor businesses, like Intel, design and fabricate their own computer chips. Other businesses like AMD or Apple design chips but outsource their production. Fabrication business like Taiwan Semiconductor (TSMC) or Global Foundries focus exclusively on manufacturing semi conductors for fabless clients. Integrated Device Manufacturers Design and manufactures computer chips in-house. Major players Intel Samsung Texas Instruments Infineon NEWMARK Semiconductor Industry Ecosystem CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 13 Computer chip fabrication is only one part of a much larger ecosystem that includes a multitude of supporting supply chain businesses. These supply chain businesses have site and location needs that affect where they locate. Intel’s “tier 1” suppliers –those suppliers Intel has a direct relationship with –require heavy industrial sites with land buffers, access to large volumes of water and electricity, and access to multiple transportation options. Smaller operations like R&D and design tend to locate in office, lab, or flex space. Equipment & Chip Design Raw Materials Legal, Sales, & Marketing Chip Fabrication Semiconductor Mfg. Equipment Production Prototyping & Small Batch Manufacturing Staffing & Workforce Development Assembly, Testing, Packaging Logistics & Transportation Light IndustrialOfficeLabFlex Heavy Industrial Space Occupied Semiconductor Industry Ecosystem NEWMARK CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 14 Semiconductor Industry Employment Composition Job Title % of Industry Employment Average Wage, 2021 (Ohio) Electrical Assemblers 16%$34,100 Semiconductor Processing Technicians 6%$44,700 Inspectors, Testers, and Weighers 5%$41,000 Industrial Engineers 4%$95,400 Software Developers 3%$112,800 Team Assemblers 3%$32,400 Electronics Engineers 3%$111,00 Electronics Assembly Supervisors 2%$65,000 Industrial Engineering Technicians 2%$60,300 Electrical Engineering Technicians 2%$62,700 Job Title % of Industry Employment Average Wage, 2021 (Ohio) Customer Service Representatives 5%$43,100 Accountants and Auditors 4%$77,700 Bookkeeping and Auditing Clerks 4%$44,100 General and Operations Managers 4%$151,700 Financial Managers 3%$146,500 Software Developers 3%$99,700 Human Resources Specialists 3%$71,400 Market Research Analysts 3%$79,100 Computer Systems Analysts 3%$94,600 Office Supervisors 2%$71,700 Semiconductor Industry Common Occupations in OhioCorporate HQ Industry Common Occupations in Ohio Source: JobsEQ The semiconductor industry consists of occupations with a variety of pay ranges. Many of the industry’s entry level positions , such as assemblers and processing technicians, are located at semiconductor fabs. Higher paying occupations in the industry, like sof tware developers or engineers, may be located at the fab or at supply chain businesses. NEWMARK Semiconductor Industry CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 15 Several recent events have spurred a restructuring in the global semiconductor supply chain. These include: 1.The COVID-19 pandemic exposed the pitfalls of geographic fragmentation in the semiconductor supply chain. 2.Increasing geopolitical tension, especially between China and the U.S., has led to U.S. sanctions that significantly limit the import of Chinese computer chips to the U.S. 3.Many countries have begun to subsidize their semiconductor industry to encourage domestic chip production in response to these tensions. Semiconductor self-sufficiency has become a national defense priority. In response to these challenges, the U.S. government enacted the Creating Helpful Incentives to Produce Semiconductors and Science Act of 2022 (CHIPS Act) in August 2022. The goal of the CHIPS Act is to boost U.S. competitiveness, innovation, and national security. The CHIPS Act invests $280 billion to bolster U.S. semiconductor capacity, catalyze R&D, create regional high-tech hubs, and crate a bigger, more inclusive STEM workforce. -Asia Times, December 7, 2022 -Electronic Engineering Times, March 3, 2023 -Bloomberg, March 22, 2023-Business Insider, March 14, 2023 -Reuters, August 19, 2021 -The GIS Report, April 6, 2023 NEWMARK Intel Integrated Device Manufacturing (IDM) 2.0 CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY IDM 2.0 represents the combination of three components that will enable the company to drive sustained technology and product leadership: 1.Intel’s global, internal factory network for at-scale manufacturing is a key competitive advantage that enables product optimization, improved economics and supply resilience. Intel will continue to manufacture the majority of its products internally. 2.Intel will increase its utilization of third-party fabs to include manufacturing for a range of products, including those at the core of Intel’s computing offerings for both client and data center segments beginning in 2023. 3.Intel will establish a standalone business unit known as “Intel Foundry Services” to provide leading-edge foundry services to clients. 16 In response to global supply chain issues and geopolitical tension, Intel announced in 2021 that it would make major investme nts to expand its semiconductor production capacity as part of the company’s “IDM 2.0” strategy. The IDM 2.0 announcement included two new fab facilities in Chandler, Arizona, and has since been expanded to include two fab facilities in New Albany, Ohio. NEWMARK Intel Ohio Investment Overview CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 17 Source: Intel, Office of the Ohio Governor. Site size:1,000 Acres Number of fab facilities:2 by 2025 Up to 8 by 2030 Total Investment:$20 billion by 2025 Up to $100 billion by 2030 Direct Employment:3,000 Average annual wage:$135,000 Intel New Albany Facility DetailsIn January 2022, Intel announced it would invest approximately $20 billion to build two fab facilities in New Albany, making Ohio one of four states with an Intel fab facility (Oregon, Arizona, New Mexico). The project broke ground in September 2022. Production will begin in 2025. The fabs will build Intel’s new “Angstrom era chips.” An Angstrom is a unit of measure one-tenth of a nanometer (nm), used to denote the distance between transistors on a semiconductor chip. Angstrom era chips will have an initial distance between transistors of 2 nm or less. Intel currently manufacturers 10 nm chips. Intel New Albany Fab Renderings Source: Intel NEWMARK CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 3. Semiconductor Business Location Dynamics 18 NEWMARK Semiconductor Location Dynamics | Supplier Park CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY Intel’s expansion into Central Ohio presents immediate opportunities for Dublin and other Columbus area communities to attract semiconductor supply chain businesses. For some of these businesses, proximity to the fab will be critical. VanTrust is currently developing a 500-acre technology park for Intel suppliers. The park’s first spec building will be completed in 2023. The business park could contain up to 5 million square feet of space once completed. 19 Source: VanTrust. NEWMARK Semiconductor Location Dynamics for Selected Semiconductor Metros CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY In other communities, semiconductor fabs have attracted scores of suppliers. News reports suggest that the New Albany fab will attract roughly 40 companies. The Newmark team identified less than five major suppliers in the region today. The Newmark team also examined how supply chains have evolved in other semiconductor communities across the country to determine how many supply chain businesses may locate in the region. Two other Intel communities –Chandler, Arizona and Hillsboro, Oregon –are home to more than 60 suppliers. Other IDMs like Samsung and Texas Instruments are home to more than 70 suppliers. 20 Company Fab Location Suppliers Within 1-Hr Drive Samsung Austin, TX 92 Intel Chandler, AZ 88 Texas Instruments Richardson, TX 77 Intel Hillsboro, OR 61 Micron Boise, ID 19 Global Foundries Malta, NY 11 Semiconductor Business Proximity to Fabs Source: ESRI Business Analyst, Newmark research. NEWMARK Semiconductor Location Dynamics | Columbus, OH CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY The Columbus region is home to only a handful of semiconductor businesses today. 21 Drive Time from Fab (mins)Number of Suppliers <10 0 10-20 1 20-30 1 30-60 2 Supplier Location Characteristics Source: ESRI Business Analyst, Newmark research. NEWMARK CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 22 Semiconductor Location Dynamics | Chandler, AZ Chandler is home to four Intel fabs, the oldest of which began production 1996. Intel’s Chandler facilities produce Xeon microprocessors used in servers. There are 88 suppliers within a 1-hour drive of these facilities. Drive Time from Fab (mins)Number of Suppliers <10 20 10-20 51 20-30 9 30-60 8 Supplier Location Characteristics Source: ESRI Business Analyst, Newmark research. NEWMARK CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 23 Semiconductor Location Dynamics | Hillsboro, OR Hillsboro is home to four Intel fabs, the oldest of which began manufacturing in 1996. There are 61 suppliers located within a 1-hour drive of the fabs. Drive Time from Fab (mins)Number of Suppliers <10 16 10-20 11 20-30 7 30-60 27 Supplier Location Characteristics Source: ESRI Business Analyst, Newmark research. NEWMARK CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 24 Semiconductor Location Dynamics | Malta, NY Malta is home to GlobalFoundries’ sole U.S.-based fab. The fab began production in 2012. There are 11 suppliers within a 1-hour drive of the facility. Drive Time from Fab (mins)Number of Suppliers <10 3 10-20 1 20-30 2 30-60 5 Supplier Location Characteristics Source: ESRI Business Analyst, Newmark research. NEWMARK CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 25 Semiconductor Location Dynamics | Austin, TX Austin is home to Samsung’s “S-2” fab, which began production in 2011. The fab manufactures microprocessors and flash memory chips used in consumer electronics like mobile phones and digital cameras. There are over 90 suppliers located within a 1-hour drive. Some suppliers may also be servicing Texas Instruments in Dallas/Richardson. Drive Time from Fab (mins)Number of Suppliers <10 7 10-20 34 20-30 38 30-60 13 Supplier Location Characteristics Source: ESRI Business Analyst, Newmark research. NEWMARK CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 26 Semiconductor Location Dynamics | Richardson, TX Richardson is home to two Texas Instruments fabs, the oldest of which began production in 2009. Texas Instruments manufactures analog semiconductors that are used in a wide range of consumer and business products. There are 77 suppliers within a 1- hour drive of the fabs. Drive Time from Fab (mins)Number of Suppliers <10 22 10-20 32 20-30 12 30-60 11 Supplier Location Characteristics Source: ESRI Business Analyst, Newmark research. NEWMARK CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 27 Semiconductor Location Dynamics | Boise, ID Boise is home to one Micron fab that produces computer and flash memory devices. The facility has been in operation since the early 1980s. There are 19 suppliers located within a 1-hour drive. Drive Time from Fab (mins)Number of Suppliers <10 7 10-20 10 20-30 1 30-60 1 Supplier Location Characteristics Source: ESRI Business Analyst, Newmark research. NEWMARK CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 4. Semiconductor Sector Property Types 28 NEWMARK Semiconductor Property Types CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 29 Property Type Site Characteristics Built Form Worker Description Office Site size varies significantly –may be large standalone sites or mixed-use high density. Can be situated near other offices or residential uses. Self-contained building with attractive architectural features. Minimal traffic flow outside of employees. Predominantly professional occupations. Work occurs mostly during the day. Lab Small to medium sized sites. May exist as part of office or industrial sites. Some venting/stacks but maintains strong “office-like” appearance. A mixture of office professionals and technical workers. Work occurs during the day. Flex Smaller scale sites. Fits near office, lab, or industrial uses. Primarily focused on industrial activities but maintains many characteristics of office buildings. Some rear truck bays for shipments. A combination of office professionals and production workers. Production work may include testing, prototyping, or other light manufacturing. Work occurs during the day. Light Industrial Medium scale sites. Typically located away from residential uses. May be adjacent or co-located with other industrial uses. Transportation access is important. Design elements focused on ease of production first, aesthetics second. High ceilings. Venting/stacks. Rear truck bays support moderate volume of traffic. A mixture of office professionals and production workers. Work may occur around the clock. Heavy Industrial Large scale sites. Shielded from residential uses through land buffers or other uses like offices. Transportation access is critical. Design elements focused on ease of production rather than aesthetics. High ceilings. Venting/stacks. Visible truck bays. Outdoor storage. Mostly production workers. Work occurs around the clock. Semiconductor industry activity occurs across multiple property types. These property types each have unique characteristics that guide location choices. NEWMARK CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 30 Business services, sales, engineering, and some R&D activities occur in office buildings and settings familiar to Dublin, OH. Semiconductor Office Properties (1 of 3) Moov Technologies, Phoenix, AZ ▪83 North Mill Ave, Tempe, AZ ▪Moov is an online software platform that matches buyers and sellers of semiconductor manufacturing equipment. ▪32,000 SF space inside large high-rise office building. ▪Total employment expected to reach over 100 by end of 2022. ON Semiconductor, Meridian, Idaho ▪3405 E Overland Rd, Meridian, ID ▪Onsemi is a supplier of silicon solutions for energy efficient electronics, including EV automotive, LED lighting, communications, medical, and aerospace industries. ▪Corporate Campus: Design and Solution Engineering. ▪Onsemi occupies 5,900 SF of the 124,000 SF building. NEWMARK CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 31 Business services, sales, engineering, and some R&D activities occur in office buildings and settings familiar to Dublin, OH. Semiconductor Office Properties (2 of 3) Hitachi High-Tech America,Hillsboro, OR ▪2900 NE Century Blvd Ste 200, Hillsboro, OR 97124 ▪Hitachi High-Tech America sells and services semiconductor manufacturing equipment. ▪Hillsboro location serves as corporate office. ▪43,700 SF building. Hitachi occupies several suites within the building. Analog Devices, Inc., Dallas, TX ▪14675 Dallas Pkwy Suite 300, Dallas, TX 75254 ▪Analog Devices is a multinational semiconductor company specializing in data conversion, signal processing and power management technology. ▪Dallas location serves as corporate office. ▪197,000 SF multi-tenant building. Analog occupies one suite. NEWMARK CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 32 Business services, sales, engineering, and some R&D activities occur in office buildings and settings familiar to Dublin, OH. Semiconductor Office Properties (3 of 3) Micron Technology, Inc., Boise, ID ▪1060 S Manitou Ave, Boise, ID 83706 ▪Micron Technology is a semiconductor manufacturing company. ▪Boise location serves as an engineering center comprised of offices and classrooms. ▪18,000 SF space located at Boise State University campus. NEWMARK CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 33 Business activities primarily focused on product design and testing. Semiconductor Lab Properties Lawrence Semiconductor Labs, Tempe, AZ ▪2300 W Huntington Dr, Tempe, AZ 85282 ▪Lawrence Semiconductor Labs specializes in epitaxial manufacturing, characterization, research and development services. ▪Tempe location serves as a testing laboratory. ▪15,000 SF building. Qrona Technologies, Eden Prairie, MN ▪7622 Executive Dr, Eden Prairie, MN 55344 ▪Qrona Technologies provides expertise and equipment for thin-film disposition and characterization to reduce R&D time and cost. ▪Eden Prairie location serves as a research and product development laboratory. ▪112,332 SF flex building. Qrona Technologies occupies one suite. NEWMARK 34 CITY OF DUBL IN ECONO MIC DE VELOPM ENT | SEMICONDUCTOR POSITI ONING STUDY Semiconductor Flex Industrial Properties (1 of 2) Many office functions, R&D, and light industrial activities occur in Flex Industrial buildings with a variety of multi-use features. Valin Corporation, Chandler, AZ ▪2900 S Gilbert Rd Suite 2, Chandler, AZ 85286 ▪Valin Corporation is a leading technical solutions provider. ▪Chandler location serves operations and logistics staffing, warehousing, electrical assembly, gauge certification and distribution. ▪32,000 SF building. Micron Semiconductor Products Inc., Round Rock, TX ▪1 Chisholm Trail Rd # 2200, Round Rock, TX 78681 ▪Micron Semiconductor Products manufactures and distributes electronic components. ▪Round Rock location serves as a corporate office and parts supplier ▪80,504 SF multi-tenant building. They lease approximately 35,000 SF. NEWMARK 35 CITY OF DUBL IN ECONO MIC DE VELOPM ENT | SEMICONDUCTOR POSITI ONING STUDY Semiconductor Flex Industrial Properties (2 of 2) Many office functions, R&D, and light industrial activities occur in Flex Industrial buildings with a variety of multi-use features. ASML Holding, Hillsboro, OR ▪7451 NE Evergreen Pkwy, Hillsboro, OR 97124 ▪ASML is the largest supplier for the semiconductor industry. ▪Hillsboro location is the largest US Customer Support Site, focusing on office, maintenance, installations, and upgrades. ▪25,303 SF building. netMercury, Dallas, TX ▪13438 Floyd Cir, Dallas, TX 75243 ▪netMercury is a semiconductor supplier. ▪Dallas location serves as a critical parts, materials, equipment, repairs and value- added service supplier. ▪6,676 SF building. NEWMARK CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 36 Activities including R&D, light manufacturing, and distribution in highly-accessible industrial park settings. Semiconductor Light Industrial Properties (1 of 2) Banner Industries, Hillsboro, OR ▪7205 NE Evergreen Pkwy Ste 900, Hillsboro, OR 97124 ▪Banner Industries is a stocking distribution service. ▪Hillsboro location is a center for distribution service of high purity and industrial flow components. ▪75,000 SF multi-tenant building. Banner occupies a portion of this space. ASM America, Phoenix, AZ ▪3440 E University Dr, Phoenix, AZ 85034 ▪ASM specializes in design, manufacturing, sales and service of semiconductor wafer processing equipment. ▪Phoenix location serves as the ASM America headquarters. ▪130,282 SF building. NEWMARK CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 37 Activities including R&D, light manufacturing, and distribution in highly-accessible industrial park settings. Semiconductor Light Industrial Properties (2 of 2) Omni Logistics, Austin, TX ▪4801 Freidrich Ln Bldg 3 Suite 250, Austin, TX 78744 ▪Omni Logistics is a global logistics company. ▪Austin location serves as warehousing and distribution. ▪205,176 SF multi-tenant building. Omni Logistics occupies a warehouse suite. NEWMARK CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 38 Heavier manufacturing uses with large utility, infrastructure, and transportation needs that require distinct land use planning considerations. Semiconductor Medium & Heavy Industrial Properties (1 of 2) Intel, Hillsboro OR ▪1798 NE Shute Rd, Hillsboro, OR ▪Intel (Hawthorn Farm Campus) is home to 3 semiconductor fabs. ▪Heavy manufacturing is located across the street from quality residential housing (NE Shute Road) and shielded by berms and landscaping. Edwards Vacuum, Chandler, AZ ▪2350 E Germann Rd #30, Chandler, AZ 85286 ▪Edwards is a leading semiconductor supplier of vacuum equipment. ▪Chandler location serves manufacturing, warehousing, factory areas and training. ▪200,000 SF building. NEWMARK CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 39 Heavier manufacturing uses with large utility, infrastructure, and transportation needs that require distinct land use planning considerations. Semiconductor Medium & Heavy Industrial Properties (2 of 2) LTD Material, Austin, TX ▪8115 Altoga Dr A, Austin, TX 78724 ▪LTD Material provides products and services to the semiconductor industry. ▪Austin location is a machine shop. ▪38,000 SF space. NEWMARK CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 5. Dublin Planning District Assessments 40 NEWMARK Planning District Assessments for Semiconductor Investment CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY The Newmark team participated in a brief tour of each of Dublin’s business districts to become familiar with the general deve lopment characteristics of each part of the city. The team made preliminary assessments of available sites and infrastructure from a site selector’s perspective. The tea m conducted desktop research and collaborated with Dublin Economic Development and Planning professionals to determine each district’s suitability to support the development of various semiconductor asset types. 41 Suitability Level Indicator Notes Low l Significant challenges for this property type. Not recommended for marketing efforts. Challenges may include infrastructure, available space, zoning, public opposition, etc. Medium ll Area provides some suitability for semiconductor types but may have some disadvantages or challenges. High lll Area satisfies many criteria required for semiconductor supply chain investment activity. Recommended as an area to market to semiconductor suppliers. NEWMARK Planning District Assessment Criteria for Semiconductor Investment CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY Workforce Access Property Options Transportation Access Official Plan & Zoning Utilities Land Use Compatibility The Newmark team leveraged their expertise as site selectors and economic developers to review each of Dublin’s planning dist ricts. The team considered the following criteria in assessing suitability for various semiconductor asset types: 42 NEWMARK Planning District Assessments for Semiconductor Investment | Overall Summary CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY Area Office Lab Flex Light Industrial Heavy Industrial Blazer Research District lll lll ll l DQ Bridge Street District lll l l DQ DQ Emerald Corporate District lll lll ll l DQ Metro Office District ll l l l DQ Perimeter Commerce District lll ll l l DQ Shier Rings Techflex District lll lll lll ll DQ West Innovation District lll lll lll ll DQ Potential Annexation Lands ll lll lll lll lll Sum of Suitability Scores:22 19 16 11 3 DQ = Disqualified. Land use not suitable for district development based on discussions with City of Dublin Planning and Economic Development. The sums of Newmark’s suitability scores are indicative of development potential of various assets types in Dublin. Office us es are clearly favored, and Heavy Industrial uses have constrained prospects. However, Lab, Flex, and Light Industrial uses have more investment potential than currently projected by city staff. 43 NEWMARK Assessment: West Innovation District CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY Strengths: •District remains mostly undeveloped. Potential for larger site greenfield projects. •Current zoning permits a variety of uses including office, lab, flex, and light industrial. •Potential for annexation of extraterritorial lands west of Houchard Road. •Direct access to CN rail. •Access to high voltage transmission lines and substation. •Excellent access to Hwy 33. •Industrial building under construction indicates demand for flex/industrial space. •Expedited development review process. Challenges: •Potential local opposition to industrial use, especially if near to Darree Fields or residential uses. •Water/Wastewater capacity unknown, with some reports of low water pressure. •Roads & utilities not fully developed, especially in areas most suited to industrial. •Pockets of residential use nearby, with conflicting interests in future land uses. Opportunities/Recommendations: •The WID has the greatest potential among all districts for industrial use. The area should be marketed toward semiconductor suppliers that require high power or water use (contingent upon capacity study findings). •The City should work with the City of Columbus to proactively understand water/wastewater load capacities and thresholds for potential projects. •Develop development capacity studies on 2-4 sites. Office Lab Flex Light Industrial Heavy Industrial lll lll lll ll DQ District Assessment 44 NEWMARK Assessment: Perimeter Commerce District CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY Strengths: •Concentration of hospital/medical uses. •Presence of a small number of larger undeveloped/vacant office properties. •Good access to consumer services. •Excellent highway access. •Utility system built out to accommodate community plan. •Most of the district buffered from residential uses. Challenges: •Consolidated land ownership (few players with large parcels). •Planned Unit Development District. Development requires compliance with previously approved development text requirements as part of the zoning review process. •Mostly built out. Opportunities/Recommendations: •District has potential for new large-scale office or lab development. •City should work with the City of Columbus to proactively understand water/wastewater load capacities and thresholds for project types. •Identify electricity and gas utility capacity constraints for industrial uses. •Identify developable parcels and conduct development capacity studies for Lab and Office options. Office Lab Flex Light Industrial Heavy Industrial lll ll l l DQ District Assessment 45 NEWMARK Assessment: Shier Rings Techflex District CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY Strengths: •Dublin’s original industrial corridor, presence of existing small industrial/flex spaces could be complimented by additional industrial development. •Standard zoning throughout most of the district (Technology Flex) allows for by-right development, supports multiple property uses, including lab and clean manufacturing. •Excellent access to Hwy 33 and interstate highway system. •Access to some consumer services. Challenges: •Mostly built-out, difficult to find vacant parcels. •Most developable parcels are smaller sized. •Heavily wooded area with high tree replacement fees. •Height and setback ratios limit scale and intensity of new development. Opportunities/Recommendations: •Identify utility capacity constraints for industrial uses. •Identify developable parcels and conduct development capacity studies for Lab and Flex Industrial project options. Office Lab Flex Light Industrial Heavy Industrial lll lll lll ll DQ District Assessment 46 NEWMARK Assessment: Emerald Corporate District CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY Strengths: •Excellent access to U.S. 33 and Interstate 270. •Historic presence of high visibility office space, potential draw for companies wanting to be seen. Challenges: •Mostly built-out, little vacant land. •Mostly Planned Unit Development District. Development requires compliance with previously approved development text requirements as part of the zoning review process. Opportunities/Recommendations: •Consider opportunities to accommodate Lab or Flex uses that are co- located with corporate headquarters functions. •Refresh existing capacity studies for selected sites with more diverse use cases to accommodate semiconductor sector needs. •Identify any potential utility capacity challenges for flex or light industrial uses. Office Lab Flex Light Industrial Heavy Industrial lll lll ll l DQ District Assessment 47 NEWMARK Assessment: Blazer Research District CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY Strengths: •District contains larger properties buffered from residential uses. •Current zoning allows for by-right development of Office, Laboratory, and R&D, which is unique in the city. •Vacant sites allow for customized development. Challenges: •Current zoning may limit larger projects with more industrial functions. •Limited access to consumer amenities. Future studies underway to improve connectivity and broaden land use options. •Dated office space and site planning not designed for walkability. Opportunities/Recommendations: •Identify utility capacity constraints for flex, lab, and light industrial development. •Update current capacity studies to include lab and flex uses. Office Lab Flex Light Industrial Heavy Industrial lll lll ll l DQ District Assessment 48 NEWMARK Assessment: Metro Office District CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY Strengths: •Available office space. Challenges: •Fully built-out based on legacy “campus” site planning. •Planned Unit Development District. Development requires compliance with previously approved development text requirements as part of the zoning review process. •Limited access to consumer services. Future studies underway to broaden land use options within a larger redevelopment framework for the area. •Dated office designs not designed for walkability or access to services. •Local Business Association must approve changes to common areas. Opportunities/Recommendations: •Current abundance of vacancies in the district (“as-is, where-is”) may provide immediate leasing opportunities for certain semiconductor supply chain companies seeking affordable office space. •The City adopted an updated vision for the area that identifies what a redeveloped district could look like. The vision includes implementation steps that the City should continue working toward. A redeveloped district could attract semiconductor office users looking for Class A office space. Office Lab Flex Light Industrial Heavy Industrial ll l l l DQ District Assessment 49 NEWMARK Assessment: Bridge Street District CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY Strengths: •Vibrant quality of life in new Bridge Street neighborhood area. •Walkability with commercial and social amenities. •Attractiveness to younger workforce. •Good access to Interstate 270. Challenges: •Current zoning may limit larger development. •Proximity to residential uses poses challenges for non -office uses. •Development must meet existing form-based code. Opportunities/Recommendations: •District has strong potential to attract smaller office users doing business with Intel and other companies within the semiconductor supply chain. This includes existing businesses, as well as startups. Office Lab Flex Light Industrial Heavy Industrial lll l l DQ DQ District Assessment 50 NEWMARK Assessment: Potential Annexation Lands CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY The City has expressed interest in potentially annexing property west of its current corporate boundary. These lands are mostly unserviced, undeveloped, and used for agriculture. Strengths: •Undeveloped land allows for strategic, long-range planning and targeted development objectives. •Excellent access to high-voltage electricity and freight rail. •Limited constraints to utility rights-of-way and road planning corridors. Challenges: •Lands not under City control. Multiple owners and jurisdictions. •Neither roads nor utilities planned and at scale to support large development. •Requires detailed analysis within the City’s Community Plan process. •Residential and other uses encroaching on unique industrial infrastructure. Opportunities/Recommendations: •Pause further residential development near rail and electricity assets. •Examine Dublin’s rare opportunity for large site assembly for “Heavy Industrial” development that is clean, high-tech, in the semiconductor or other targeted sectors, and needing existing major power and rail assets. •Maintain strong planning principles while diversifying Dublin’s economy with large site options complementary to the adjacent WID. Office Lab Flex Light Industrial Heavy Industrial ll lll lll lll lll District Assessment 51 NEWMARK CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 6. Semiconductor Sector Attraction Practices 52 NEWMARK Semiconductor Attraction Best Practices CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 53 Dublin, OH Tualatin, OR Clay, NY McKinney, TX Allen, TX Peoria, AZ Community Context Client Mid-sized urban fringe community & recognized semiconductor employment center. Syracuse's most populous suburb, and one of Money Magazine’s “100 best places to live in the country.” Robust community with “name brand” employers and large industrial base. Diversifying toward office. Prosperous suburban community focused on data centers, advanced manufacturing, and corporate headquarters. Suburban community marketing to small and large semiconductor businesses. Population (2020 Census)49,328 27,942 60,527 195,308 104,627 190,985 Total Employment (Q3 2022)47,719 29,171 41,340 63,816 38,137 47,842 Average Wage Across all Industries $55,872 $83,831 $38,948 $76,683 $78,023 $66,384 The Newmark team identified a set of leading communities in other metropolitan areas that have had success attracting semicon ductor industry businesses. The team discussed attraction efforts with these communities to determine key “lessons learned” from their semico nductor attraction strategies. Sources: Data –JobsEQ, U.S. Census Bureau. Images –City of Dublin, City of Tualatin, City of Clay, City of McKinney, City of Allen, TX CVB, Visit Peoria. NEWMARK Semiconductor Attraction: Tualatin, OR CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 54 Key Takeaways •Lead with emphasis on quality of life and low tax base. •Annexation of county lands to the west of the city in 1980s enabled development of semiconductor-focused sites. •Build on success with anchor tenants like Lam Research, which has existed in the city since 1990s and has grown significantly. Area of Supply Chain Focus •Semiconductor Manufacturing Equipment •Research & Development •Precision Contract Manufacturing and Prototyping Value Proposition •Proximity to Hillsboro fab. •Strong housing values and options for all income levels. •Good transportation access with rail service and highway connectivity to major interstates. •Widely respected school district. •Presence of industrial-focused Tax Increment Financing district in western portion of the city has helped fund infrastructure to support semiconductor businesses. Tualatin is a growing community located 12 miles southwest of downtown Portland and 22 miles southeast of Intel’s Hillsboro fab. The community is considered a major employment hub in the semiconductor industry and is home to major semiconductor suppliers like Lam Research and Fujimi Corporation, as well as smaller contract manufacturers including JAE Connectors and Calmax Technology. These companies have co-located near one another at the city’s western edge near State Route 99W, which provides access to other thoroughfares leading to the Intel campus. The community is known for its high quality of life with good housing stock, access to the Tualatin River, and presence of high-end boutique shopping. Source: Greater Portland, Inc. NEWMARK Semiconductor Attraction: Clay, NY CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 55 Key Takeaways •Long-term focus on quality of life in Upstate New York and historically skilled workforce in advanced manufacturing and technology. •Strategic local economic development focus on semiconductor supply chain as an opportunity for diverse investment opportunities. •Direct investments by County in land bank and infrastructure planning to entice future projects, while maintaining strong focus on “home rule” local planning. Area of Supply Chain Focus •New 2022 Micron announcement to invest up to $100 billion over 20+ years to construct 4 fabs, creating 9,000 direct Micron jobs and indirect employment exceeding 50,000 jobs. •Prior to Micron, Onondaga County spent 6 years planning and investing in industrial lands to land significant manufacturing and spin-off office jobs. Value Proposition •Emphasis on local land use and development planning that is fast, responsive to investor needs. •County funds dedicated to engineering studies to anticipate project needs and allow for scalable development in multiple phases. •Easy commuting access to high-skill workforce and higher education resources in Syracuse metro. •Multi-faceted focus on skills training & upskilling. •Proximity and access to high-voltage power, rail, and development lands. Clay is the most populous suburban community in Syracuse, New York, with a town population over 60,000. Employment opportunities include small, family-owned businesses, national retail chains, and a wide variety of service-sector and manufacturing operations. The town is adjacent to Syracuse, NY (population 149,000 and ranked by Forbes as the 4th best place in the United States to raise a family) and situated at the north end of Onondaga County, which has 470,000 people within its boundaries. The region has a long history of company attraction and local business growth in the inter -related fields of software, manufacturing, and services related to electronics, automotive, defensive, semiconductors, and more. NEWMARK Semiconductor Attraction: McKinney, TX CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 56 Key Takeaways •Lead with emphasis on workforce and local talent pool. •Partnerships with higher education are critical. City acts as a relationship builder, especially with relocating businesses. •Dedicated “expeditor” staff make McKinney competitive among peers. Area of Supply Chain Focus •Research and Development, Engineering •Lab (wet, dry, clean) •15,000-30,000 SF tenants Value Proposition •Strong stock of executive housing. •Proximity to fabs in Sherman and Austin. •Available R&D and engineering workforce. •City has a dedicated Project Expeditor position that focuses on guiding large projects through from introduction to occupancy. •Strong partnerships with University of Texas Dallas, which was built with the intent of developing an engineering talent pipeline for Texas Instruments. City helps form relationships between businesses and university talent. McKinney is a growing northeastern suburb of Dallas-Fort Worth with a population of nearly 200,000 residents. McKinney is a 30-minute drive south of Sherman, TX, which is home to a new $30 billion Texas Instruments fab and a $5 billion GlobiTech fab. McKinney is transitioning from a quiet bedroom community into a major employment center in Dallas. The community is developing an industrial base along with lab, flex, and office, some of which is focused on Raytheon’s local advanced manufacturing facility. The community has been approached by semiconductor suppliers looking to provide goods and services to Samsung in Austin and Texas Instruments in Sherman. Source: Discover Collin County NEWMARK Semiconductor Attraction: Allen, TX CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 57 Key Takeaways •Strong relationship with regional EDC. •Meets regularly with existing businesses to ensure retention. •Attends semiconductor trade shows, including CES, SEMICON, ISS. •Uses proximity to fab as key selling point for attraction. Area of Supply Chain Focus •Research and Development. •Assembly, Testing, & Packaging. •Industrial Process Chemicals. Value Proposition •Available Class A flex, industrial, and office space. •Strong technically-focused local community college with electrical engineering program (Collin College). •Presence of mixed-use industrial space allows for office and manufacturing in the same building. This is especially attractive to global semiconductor suppliers, who typically look for strong connections between management and production workers. Allen is a northeastern suburb of Dallas-Fort Worth with a population of 105,000. The city is located 12 miles north of Richardson, which is home to two Texas Instruments fabs. The first fab began operations in 2009. The second fab began production in late 2022. Allen is also 40 miles south of Sherman, which will be home to new fabs from Texas Instruments and GlobiTech. The City’s target industries include technology, data centers, and semiconductor suppliers. The community has focused on marketing its Class A industrial and office space to major suppliers. The Allen Economic Development Corporation is currently working to find space for Littelfuse, a global manufacturing company that manufactures power protection solutions for circuit boards. Source: Allen TX CVB NEWMARK Semiconductor Attraction: Peoria, AZ CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 58 Key Takeaways •Proactive marketing has brought semiconductor wins to the community. Economic Development team maintains prospect list and conducts regular in- person outreach in target markets. •Economic Development meets regularly with Planning and Engineering to discuss prospect pipeline, ensure adequate utility infrastructure. •Strong relationships with local brokers is critical. Economic Development works with brokers to show them what semiconductor prospects are looking for. •“Reverse timeline” approach –city departments work together to determine when review and feedback must be completed based on needs of prospect. Example Project •In 2023, landed California-based HyRel Technologies expansion project. HyRel provides semiconductor modification services. •HyRel chose Peoria because of the city’s proximity to TSMC and Intel. •20,000 SF, $15 million project, 50 jobs. •Occupying one suite in multi-tenant flex building. Value Proposition •Strong quality of life, access to multiple amenities including lakes, hiking, spring training baseball. •Good supply of modern mixed-use office space that many technology companies are seeking. •Several large developable sites with example site plans prepared. •Local community college offers two-week semiconductor manufacturing certificate. •Short development review timeline. Flexibility in zoning. Peoria is a western suburb of Phoenix with a population of 191,000 residents. The community is located within a 10 - minute drive of Taiwan Semiconductor’s newly-announced Phoenix fab, which will begin production in 2024. Peoria is also located 40 minutes northwest of Intel’s Chandler fab. The City’s economic development team has aggressively marketed Peoria to Intel and TSMC suppliers, leading with the community’s quality of life, available talent, workforce pipeline, and proximity to fabs. Source: Peoria Arizona Economic Development. NEWMARK CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 7. Promoting Dublin’s Value Proposition 59 NEWMARK Strength Newmark Comments 1.Strong quality of life Dublin is a carefully curated community. The City’s efforts in this regard have made it a very desirable place to live. The local school district is well regarded, home values are strong, and residents enjoy the community’s public and private amenities. 2.Ethnic & linguistic diversity The community’s ethnic diversity is a strong selling point in attracting international semiconductor suppliers that could expand to the region. 3.Dublink Fiber Infrastructure Dublink Fiber is unique in the Columbus region, providing reliable and affordable high speed data transfer. Many semiconductor industry companies depend on high throughput internet, making Dublink a selling point in attraction efforts. 4.Vacant land for annexation Dublin’s unique location on the northwestern edge of the Columbus MSA may allow the City to annex vacant land to grow. Sites to the west of the city are especially promising due to their proximity to freight rail and high voltage electricity. These lands are also separated from residential uses. 5.Vacant land within city boundaries The City has some vacant land within its boundaries –of public and private ownership –that could accommodate custom-built semiconductor supply chain projects of various types. Dublin Value Proposition: Strengths (1 of 2) 60 CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY In addition to desktop research, the Newmark team conducted a visit to Dublin to assess the community’s strengths, challenges , and opportunities. During the visit, the team spoke with key City and regional stakeholders. The team identified the following strengths for Dublin. Strengths Lead with These NEWMARK Strength Newmark Comments 6.Proximity to Honda, Beta District, Smart Mobility Corridor, and Intel The community is centrally located to many “high-tech” corporate investments. Proximity to these assets could be attractive to semiconductor and other electronics suppliers that will service Intel and Honda, or businesses that will participate in the Smart Mobility Corridor and Beta District. 7.Available and successful mixed-use development The Bridge Street District serves as a major quality of life asset for young talent and provides desirable “new format” Class A office space. 8.Access to high-voltage electricity and rail West Innovation District and potential future annexation lands provide a rare mix of strong electrical infrastructure and access to rail that is critical to some industrial users. 9.Expedited development review process for WID Expedited planning and development review processes could help attract semiconductor suppliers who face tight timelines to begin operations in the region and meet demand from the New Albany fab. 10.Strong local and regional education assets The region has several strong education and training assets that will support workforce needs of semiconductor businesses. Dublin can leverage their existing institutional relationships and amplify messaging about the benefits of collaborating with these educational institutions while the City works with semiconductor project leads. Dublin Value Proposition: Strengths (2 of 2) 61 CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY NEWMARK Challenge / Opportunity Newmark Comments 1.Rigorous planning & development process is thorough but also lengthy and unpredictable Semiconductor suppliers face tight timelines to establish operations in the region given Intel’s aggressive 2025 production timeline. Dublin development projects are known for delays and last-minute planning or zoning issues. This is a major impediment to development in the community. 2.Community Plan not current An out-of-date Community Plan does not provide sufficient guidance to businesses or developers on the City’s vision for future development. Developers and businesses face risks that an updated plan may recommend zoning changes or envision different land use strategies. The City is in the process of updating its plan. 3.Property capacity studies unavailable or not utilized Dublin has developed property capacity studies, but these studies are not readily available, nor are they actively used to encourage development. Studies are unavailable for many vacant properties. Existing studies focus heavily on retail and office uses, leaving no guidance for lab or flex/light industrial uses. 4.Lack of available industrial zoned property The city has a very small stock of existing industrial property, along with low industrial vacancy rates and only one industrial project underway, severely limiting the city’s potential to attract flex, lab, or industrial users in the highly valuable and fast-growing semiconductor industry and other high-value sectors like automotive. Dublin Value Proposition: Challenges/Opportunities (1 of 2) 62 CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY In addition to desktop research, the Newmark team conducted a visit to Dublin to assess the community’s strengths, challenges , and opportunities. During the visit, the team spoke with key City and regional stakeholders. The team identified the following challenges and opportunities for Du blin. Challenges/Opportunities Continue to Address NEWMARK Challenge / Opportunity Newmark Comments 5.Political/social opposition to industrial development Public opposition has inhibited new industrial development, perhaps based on limited conceptions of industrial uses that may fit well within Dublin’s urban fabric and create high -skill, high-wage employment. 6.Stagnant office market with barriers to redevelopment in some areas High vacancies in office market. Much of the city’s office stock is aging. Some areas (Metro Office, Blazer Research) have significant ownership/political/procedural barriers that limit potential for redevelopment. 7.Limited availability of manufacturing-focused high school programs within City boundaries. Dublin City Schools does not directly offer manufacturing-focused career education, though this is supplemented by program offerings through Tolles. Columbus State Community College offers certificates and associate degrees in manufacturing, engineering, and related disciplines to support Columbus area students interested in entering manufacturing sectors, with a semiconductor program announced and in development. 8.Presence of other competitive “development ready” communities throughout the region The Columbus region is home to several competitive communities that have experience attracting lab, flex, and industrial users. These communities have property that will become available and ready faster and with greater certainty for new developments than is possible in Dublin. 9.Columbus-controlled water and sanity sewer utility requires dual agreement Water and wastewater utilities not being under Dublin control adds uncertainty in the site selection process. This may deter businesses that have large water or wastewater needs from locating in Dublin. Dublin Value Proposition: Challenges/Opportunities (2 of 2) 63 CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY NEWMARK CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY 8. Recommendations 64 NEWMARK Recommendations CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY Organizational Recommendations to address internal City structure to support semiconductor industry development. Marketing Recommendations for identifying, communicating with, and responding to prospects and site selectors. Site Readiness Recommendations for preparing priority sites for semiconductor businesses. Workforce Recommendations for supporting workforce development in the semiconductor space. Development Planning Recommendations regarding land use in Dublin. Specific actions to prepare community areas for semiconductor businesses. The Newmark team developed a set of recommendations for Dublin to consider as it pursues the semiconductor supply chain. The opportunity to attract suppliers is immediate and will accelerate for the next 12-24 months. These recommendations are based on multiple considerations, including: •The timelines that suppliers face in opening facilities in Central Ohio •Newmark’s experience working with semiconductor businesses across the country •Our Dublin community tour and assessment •Analysis of clustering patterns of the semiconductor supply chain across the country •Conversations with communities that have successfully attracted semiconductor suppliers. The 17 recommendations span across 5 themes, with suggested High, Medium, and Low priorities. 65 NEWMARK Recommendations CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY Num.Category Recommendation Priority Notes 1.Development Planning Create an inventory of all vacant lands and City- owned parcels that could potentially be (re)developed for semiconductor sector and other high-priority uses. High The City does not have a comprehensive inventory of private and public land that could be (re)developed for investment attraction purposes. The inventory should identify all privately-owned parcels (not just broker listed options). Site capacity studies should be prepared for all high-priority options, not just office uses. Private property owners should be encouraged (possibly through incentives) to undertake required due diligence studies. 2.Development Planning Develop an annexation and infrastructure service strategy for lands west of the city as part of the current Community Plan update. High For annexation to move forward, the City, at a minimum, should develop a plan that identifies which parcels could be annexed in the future, who owns each parcel, and what utility requirements each parcel could have. Discussions should occur as part of the Community Plan update. 3.Development Planning As part of the Community Plan update, identify any areas of the community that could be rezoned to allow development by right, rather than requiring additional approval. High Much of the city's land does not allow for development by right and must receive additional approval. The City should reassess whether areas requiring additional approval are necessary, and if not, remove this uncertainty to encourage new development. 66 NEWMARK Recommendations CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY Num.Category Recommendation Priority Notes 4.Marketing Generate semiconductor-focused content for the Dublin Economic Development webpage.High Dublin's Economic Development page must be updated to market directly toward semiconductor suppliers using the strengths outlined in this report. The industry should be clearly identified as a priority on the website, noting Dublin's proximity to New Albany. The website should also declare Dublin as development ready. Note the presence of existing high-tech companies and provide a "call to action" for suppliers to be a part of the cluster build -out happening in Dublin. 5.Marketing Identify a set of tech-focused companies/manufacturers that could serve as ambassadors for future site selector visits. High The City should identify a set of companies that can be relied upon to "sell" Dublin to site selectors. The City should maintain regular contact with these companies and conduct preparatory meetings prior to site selector visits to ensure a unified message is told about the benefits of Dublin. 6.Marketing Identify the top sites in each of Dublin's community areas/districts that should be the emphasis for marketing. High Using the District Assessments as a foundation, identify a set of top sites to be marketed to semiconductor prospects. Review these sites for any deficits (utilities, transportation, zoning) and work to address deficits where possible. 7.Marketing Organize familiarization (“fam”) tours for site selectors and companies around major events. Consultants can be targeted through the Site Selectors Guild, and company prospects in the semiconductor supply chain can be identified in association with One Columbus and JobsOhio. Medium Organize semiconductor site selector visits around major events such as the Dublin Irish Festival or Memorial Golf Tournament to exhibit quality of life amenities to site selectors. 67 NEWMARK Recommendations CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY Num.Category Recommendation Priority Notes 8.Marketing Develop a list of semiconductor prospects in other communities and proactively market Dublin to those prospects. Low Develop prospect lists based on conversations with One Columbus and JobsOhio, the City’s partners that have the most details on Intel’s supply chain. Also consider visiting other semiconductor communities for market intelligence. 9.Marketing Attend key semiconductor trade shows to market Dublin as a community of choice for semiconductor business relocation. The leading event in North America is SEMICON West. Other event schedules can be sourced through the semiconductor industry association called Semi (www.semi.org), and through JobsOhio. Low Prospects at trade shows may differ from prospects through JobsOhio or One Columbus, offering more opportunity to attract suppliers than working through RFPs/RFIs alone. 10.Organizational Create a rapid response team for semiconductor projects. This team might include representatives from Economic Development, Planning, Engineering, the City Manager, and Planning & Zoning Commission. High Time-to-market will be a critical factor for attracting semiconductor suppliers to Dublin given Intel's aggressive project timeline. The City should develop a "rapid response" team to ensure it responds to RFI/RFPs and development inquiries as quickly as possible to improve chances of attracting suppliers. 11.Organizational Hold regular internal collaboration meetings between Economic Development, Planning, Engineering, and Transportation and Mobility to coordinate goals and efforts, and to discuss the City’s prospect pipeline in order to ensure the City can respond quickly and effectively to leads. Medium Attracting a major semiconductor project will require a high level of cooperation and understanding among City departments. Greater communication between all departments will help ensure the best response to prospects. 68 NEWMARK Recommendations CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY Num.Category Recommendation Priority Notes 12.Site Readiness Develop industrial/flex/lab-focused property capacity studies for priority sites. Encourage private property owners (possibly through incentives) to undertake required due diligence studies. High The City has developed property capacity studies focused on office development. These studies are helpful for site selectors to understand the City’s intention and development feasibility. The City should develop property capacity studies with a focus on other uses (lab, flex/light industrial) where feasible. 13.Site Readiness Continue to cultivate relationships and information sharing protocols with utility providers to improve readiness to handle complex project inquiries. High Continue to foster a strong relationship with utility providers. Ensure that providers will respond to inquiries and contribute to the completion of property capacity studies the moment that they are needed. 14.Site Readiness Conduct water/sanitary sewer capacity studies in West Innovation District Medium Water and sanitary sewer capacity were cited as major constraints in the West Innovation District, although the extent of the issue is not fully known. The City should conduct an engineering study to determine what capacity could be supported at sites across the district. 15.Site Readiness Demonstrate that the City is not only responsive to inbound project opportunities but can also improve its ability to satisfy information requests from complex project inquiries and execute projects with speed and certainty when semiconductor prospects arise. High State and regional leadership do not see Dublin as a key player in the future semiconductor supply chain. The City needs to improve the way that economic development partners view Dublin’s ability to complete projects with the pace and confidence required by semiconductor suppliers. 69 NEWMARK Recommendations CITY OF DUBLIN ECONOMIC DEVELOPMENT | SEMICONDUCTOR POSITIONING STUDY Num.Category Recommendation Priority Notes 16.Workforce Continue to engage with Dublin City Schools to support their expansion into semiconductor manufacturing training for high school students. Medium Emerald Campus has expressed interest in expanding its programming into advanced manufacturing, and Tolles is already active in technical education. The City should cultivate its relationships with both entities and support the development of this programming. 17.Workforce Continue to cultivate two-way relationships with higher education institutions to (1) amplify the positive messages that the schools can deliver about Dublin, and (2) improve the City’s ability to deliver value to its own businesses and new semiconductor prospects. Medium City staff should continue to deepen their relationships with area colleges and universities. Being able to call on schools (and specific programs) when prospects visit will signal Dublin's intentional approach to attracting semiconductor businesses. This relationship may also be helpful in addressing current businesses' unmet workforce needs. Activities to further cultivate this relationship include involving Dublin businesses with area Business Advisory Councils, attending meetings open to economic developers, communicating local business’ workforce needs to those institutions, facilitating meetings between “higher ed” and local high schools, etc. 70