One of the most important tools in the world of economic development is, the Comprehensive Economic Development Strategy [CEDS]. CEDS is a data based, strategy-driven strategic economic development plan to see the current and future economic condition of their region [regions can be stand-alone cities, counties, or economic development regions]. The CEDS contributes to effective economic development in a local region by taking a deep, honest and transparent look at possibilities through a place-based, regionally driven economic development planning process. It is required for any community to be eligible to be designated as an Economic Development District [EDD] and plays a very important role for funding from various federal programs promoting economic, infrastructure, workforce development, and serves as a way to engage regional and local leaders to truly look at the economic conditions, past, present, and future, while leveraging the private sector, and establish a strategical regional collaboration. It should, I dear say “must,” include elected officials, citizens, stakeholders, institutes of learning, organizations, and business representatives from the region in order to truly gather the information needed and engage in meaningful and conversation debate concerning the capacity building efforts designed to best serve economic development in the region.
Two Key Points To Remember:
- One: Every Regions must update their CEDS, at minimum, every five years to qualify for U.S. Economic Development Administration [EDA] for assistance under the Public Works and Economic Adjustment Assistance programs.
- Two: CEDS’ are a prerequisite for designation by EDA as an Economic Development District (EDD).
While a CEDS is developed by the region, it is outlined in Federal Regulations 13 C.F.R. § 303.7. In order to have a CEDS the following sections must be included to meet governmental regulations. Keep in mind, this is not a “cut and paste” process. Your region’s unique reality, its assets and challenges, are different from others and should share your region’s unique reality.
Before you start working on a CEDS you need to establish, and maintain, an Strategic Economic Development Committee to oversee the process and define the Committee’s roles, responsibilities, and any rules governing the Committee. The Committee needs to develop initial CEDS documents and solicit and address public comments by working with staff resources, and adopting a program of work. Once this is competed, and the public hearings are finished, the Committee needs to finalize CEDS document and submit a CEDS Annual Performance Report and set up dates when the Committee can revise or update the CEDS. Keep in mind, the revise and update component needs to happen yearly for the first five years. With that in mind, here are the elements required in a CEDS:
- Summary Background: A summary background of the economic conditions of the region focusing on What have we done? It needs to contain a clear understanding of the current local economic situation connected to relevant and clear data and have a vision of what the future might hold. Whenever I have done a CEDS, in this area I list the names, and give a short bio, of all members of the Strategic Committee, and list all dates, time and locations of the public meetings.
- SWOT Analysis: Develop a deep, honest, in-depth and realistic analysis of your regions Strengths, Weaknesses, Opportunities and Threats (SWOT analysis) centering on your region.
- Strategic Direction/Action Plan: It is one thing to know the elements of the SWOT, it is another thing to actually see how each area will benefit, and slow down, your plans. Strategic direction and action plan need to build on what you see in your SWOT and share how you will incorporate, integrate, address, and build upon elements found in your SWOT, e.g., building codes, land use limitation, workforce development, and many more. Focus on the realistic steps in your action plan, what is first, who will do what, and when will it be done.
- Evaluation Framework: How will you be reviewing your CEDS? What performance measures will you used to know you are on track? How will you evaluate your regions implementation of the CEDS? What is the projected impact, and evaluation of that impact on the regional economy? You will need to review and update the Action Plan and Strategic Direction every year for the next five years.
- Economic Resilience: In short, economic resilience is, how will your region anticipate, withstand, and bounce back from issues that may arise. It centers on how your region will bounce back any type issues they see coming from the implementation of the CEDS.
- Workforce Development: Any economic based strategic plans must consider workforce development. Your region can focus on bringing in large employers, but if the workforce is not there, they will not come. Share you plan of working with employers, schools, trade unions to help build the right workforce to meet your plan. You should think beyond traditional job creation templates.
It is important you focus on linking each section. Each section should feed off the others, and interconnect with all sections. For example, if your SWOT is not addressed in other sections, it shows a disconnection between issues and actions. Keep focused, address all issues, and connect them to your action plan, and other sections, as needed.
I will soon be publishing as article on the Gross Regional Product (GRP). The GRP measures the economic output of a specific region, similar
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