Implications for Planning EMSI Conference September 11 2012 Steven VanAusdle President Walla Walla Community College Welcome to Walla Walla Balancing Security Prosperity and the Environment ID: 466157
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Slide1
Wine Cluster Study and
Implications for Planning
EMSI ConferenceSeptember 11, 2012
Steven VanAusdle, PresidentWalla Walla Community CollegeSlide2
Welcome to
Walla WallaSlide3
Balancing Security,
Prosperity, and the Environment
The Challenges of our Time
Safety and
Security
EconomicCompetitiveness
Environmental
SustainabilitySlide4
*Improving Productivity will require more innovative uses of existing resources.
A Strategy for Economic Competitiveness
Talent
Investment
Infrastructure
Jobs, Wages, and
Standard of Living
Productivity*
Innovation and EntrepreneurshipSlide5
Infrastructure
Information Technology
Energy Technology
Water TechnologyWaste Management Technology
Transportation Technology
Regional StrategyFor Economic Development
Talent
STEM programs
High-demand programs
Establish high school skills center
Use instructional technology for
access and efficiency
Economic
studies
Investment &
Entrepreneurship
Increase access to expertise and capital
Strengthen capabilities of
manufacturing
Provide small business incentives
Ensure regulations are not barriers
Promote entrepreneurshipSlide6
WWCC Center for Enology & Viticulture
2006 Governor’s Workforce and Economic Development Best Practice AwardSlide7
Our Vision: Wine / Food / ArtSlide8
WWCC Enology Students
Learning While Creating College Cellars WineSlide9
Wine Country Culinary Institute
With a Focus on Pairing Food and WineSlide10
Port of Walla Walla
Wine IncubatorsSlide11
Vinea: Sustainable Wine FarmingSlide12
The Cluster-Based Approach
to Economic Development
WWCC was awarded
an $82,000
grant, plus a $25,000 match, to:
Define and describe the nature of the region’s functional economy;
Describe
the nature of the wine
industry
cluster;
Develop a
shared
vision;
Determine
the influence of the wine
industry
cluster;
Develop
a
strategic plan
for the wine
industry
cluster;
Maintain a wine industry cluster
web
site.Slide13
Walla Walla Area
Functional Economy
walla walla area functional economy
Westernmost edge of Walla Walla County
(includes Columbia County, most of Walla Walla County, and part of Umatilla County)
Umatilla County, Oregon
WALLA
WALLA
COUNTY
COLUMBIA
COUNTY
WASHINGTON
OREGON
UMATILLA COUNTYSlide14
Net Migration, Walla Walla County
2000
1500
1000
500
0
-500
-1000
-1500
1995-2000
2000-2005
Sources: U.S. Census 2000 (Residence 5 years ago), U.S. Census
Annual County Population EstimatesSlide15Slide16
The Economic Impact of
Walla Walla
Valley
Wine
Total current jobs in wine production and tourism
1,094
Growth rate of jobs related directly to wine, 1997 – 2007
1,052%
Total earnings generated by wine-related jobs
$96 million
Additional jobs created by economic multiplier effects
937
Total regional earnings due to wine-related industries and multiplier effects
$59.3 million
Total jobs projected to be dependent on wine-related industries in 2017
3,975Slide17
Proposed Initiatives
Marketing (6)
Education and Workforce (8)Infrastructure (8)Amenities (3)
Policy (8)Slide18
Vision
Foster a Healthy Economy and a Healthy Environment
Mission
Collaborators
Initiatives
Values
K-12
University Center
WWCC
County
City
Port
Chambers of Commerce
Tourism
Walla Walla
Wine
Alliance
Art
Alliance
Sustainable Living Center
Wallowa Resources
Utilities
Dept. of Ecology
Salmon Recovery Board
Confederated
Tribes
Water Center
Walla Walla
Watershed
Partnership
Enology &
Viticulture Center
Downtown
Foundation
Career Pathways
Infrastructure
Business Development
Wine & Hospitality
Cluster
Renewable Energy
Energy Efficiency
Water Efficiency
Water
Quality
Watershed
Restoration
Skills
Center
Workforce Development
Rural Center for
Entrepreneurship
Collaboration
Excellence
Integrity
Entrepreneurship
Partnerships
Sustainability
Innovation
Diversity
Learning
Creating
the
Walla Walla Innovation Partnership Zone (IPZ)
Ecosystem
Economic, Environmental, and Cultural SustainabilitySlide19
Industry Cluster:
Groups of similar or related industries that are geographically concentrated and may achieve collective efficiencies and increasing returns to scale through transactions, shared labor pools, infrastructure, knowledge and technology spillovers, and other complementarities.Slide20
Questions
How has this regional economy changed over the
past five years?
How has the wine cluster changed over the last five
years?What are the effects of the economic downturn onthe region and the wine cluster?
How do indicators of economic progress compare in 2011 with the 2006 benchmarks?What are the priority initiatives for growing the regional economy and what central role can the IPZ continue to play?
What are other potential clusters the IPZ can promote?Slide21
Walla Walla Valley Wine
Cluster Study
Washington State Legislature,
Wine Commission, Wine Institute, andWalla Walla Valley Wine Alliance
Growers/Vineyards
Wineries/
Processing
Facilities
Grape Stock
Grape Harvesting
Equipment Vendors
Irrigation Technology
Manufacturers
Compostea
Worm Farming
Fertilizer, Pesticide,
& Herbicide Vendors
Barrel Accessories
Winemaking
Equipment
Bottle Etching
Caps and Corks
Suppliers
Public Relations
& Advertising
Washington
Agricultural Cluster
Art Cluster
Culinary Cluster
Tourism Cluster
INFRASTRUCTURE
Educational, Research, and Trade Organizations
(e.g., WWCC Enology & Viticulture Center
& Culinary Arts Program, WSU)
Based on Michael Porter’s format
for describing industry-based clusters
Slide22
Projected IPZ Employment
With and Without the Wine Cluster
With
WithoutSlide23
The Walla Walla IPZ Wine Cluster
Percentage Growth in Overall Employment 2006 to 2011
United States
- 1.5%
Washington State
1.1%
IPZ
11.3%Slide24
Walla Walla Regional Wine Economy, 2011
Direct jobs in wine production and wine tourism
2,061
Direct wine cluster employment growth, since 2001
76%
Total earnings generated by the wine cluster
$96 million
Wine cluster jobs, including multiplier effects
6,003
Total regional earnings
$230 million
Total jobs projected to be dependent on the wine
cluster in 2017
8,913
Percent of all jobs dependent on wine cluster
14.4%
Projected percent of all jobs dependent on wine cluster in 2020
19.8%
Regional economic growth since 2007
9%
Regional economic growth since 2007, absent the wine cluster
2%Slide25
Wine Cluster Research Summary
Growth in the wine industry occurs in tandem with wine tourism.
The wine cluster’s share of the regional economy is increasing: a multiplier effect of 3 and location quotient of 50.7.
Wine cluster diversifies the region’s industrial mix and contributes to its resilience, dampening the effects of economic recession.Slide26
Cluster Research
InformsPlanning Decisions
Align Workforce Education programs with regional economyAdjust the scale and scope of existing programsCreate
new programsIdentify industry needsIdentify and target potential high wage/high growth sectors
Identify public policy needsSlide27
NationalJournal
How Wine Growing in Walla Walla Supports the Economy
By Catherine Hollander
June 1, 2012“America’s economy today feels as sleepy as Walla Walla’s two decades ago. Middle-class workers were slammed by the financial crisis, their jobs disappearing, wages stagnating, and future uncertain. To put them back to work, the nation would do well to consider Walla Walla, which seems to have cracked the code on how to get mid-skill workers back into the labor force while revitalizing an economy.
If the country needs a model, this could be it.”Slide28
WALLA WALLA
Union~Bulletin
Wednesday, May 30, 2012
College Cellars wines
win regional acclaim
Eight wines from the local teaching winerytook home honors from recent judgingsWALLA WALLA – Student-made wine brought home nearly a case full of hardware at the recent Seattle Wine Awards and Northwest Wine Summit.
In the Seattle Wine Awards, College Cellars won three double gold medals for its 2011 Ice Wine, 2009 Syrah and 2008 Malbec. Silver medals were awarded for the 2011 Sauvignon Blanc and 2010 President’s Blend, along with a bronze medal for the 2010 Scholarship Red.
The college’s 2011 Chardonnay won gold and its 2011 Semillon won bronze in the Northwest Wine Summit awards, which covers Alaska, Alberta, British Columbia, Idaho, Montana, Oregon, and Washington.
The 7th Annual Seattle Wine Awards is Washington State’s largest and most comprehensive independent wine recognition program. On April 21 & 22, local and national wine professionals gathered to taste and evaluate 982 Washington wines in a single-blind format (meaning grape variety or style is known, but not price or producer) and awarded the top wines by consensus with Double Gold, Gold, Silver and Bronze Grand Awards of Excellence.Slide29
Water & Environmental Center
2010 Governor’s Workforce and Economic Development Best Practice AwardSlide30
90 construction jobs
27 additional jobs created associated with Center ExpansionAt least 250 direct and indirect jobs created, according to Earth Economics
129 graduates in 9 years with $414,336 increased lifetime earnings for each graduate
Water & Environmental CenterJobs Created and EnhancedSlide31
Employment, Earnings, and Sales
Vineyard Operations
Winery Operations
Time
Period
New
Acres
New
Full-Time
Jobs
Total
Combined
Earnings
Gross
Sales
New
Full-Time
Jobs
Total
Combined
Earnings
Gross
Sales
Year 3
200
Year 6
500
Year 9
1,000
120
$4,392,000
$8,750,000
200
$6,000,000
$60,000,000
Indirect
48
$2,898,720
$2,800,000
80
$3,960,000
$19,200,000
Total
168
$7,290,720
$11,550,000
280
$9,960,000
$79,200,000
Economic Impact of Establishing 1,000 Acres
Of Vineyard Production in the Walla Walla ValleySlide32
Can We Create An Energy Cluster in Southeastern Washington?Slide33
Wine is Prosperity in a Bottle