THE NATURE OF THE CHALLENGES AND OPPORTUNITIES

Competitive Wisconsin, Inc.(CWI) is working in collaboration with interested groups, organizations, individuals, and institutions to achieve research-based consensus on the nature of the challenges and opportunities; identify realistic, achievable options for achieving specified objectives; and help develop public consensus around the actions required to translate the vision into reality. (See Background & Context Article)

It’s about understanding the nature and severity of the challenges confronting rural Wisconsin in terms of who they affect, how they affect them and what that means for them, for us and for Wisconsin.

During the late Summer and Fall of 2020, representatives from CWI, the Wisconsin Counties Association, the Cooperative Network, Wisconsin Rural Partners, the Special Cheese Company and Dr. Jim White, Associate Professor of Agricultural Economics at UW-River Falls convened virtually on a regular basis to enhance their understanding of Wisconsin’s rural challenges and opportunities.

Most of the representatives came to the meetings in agreement that focusing exclusively on immediate needs consumed resources, limited our ability to address challenges and seize opportunities and would ultimately be counterproductive. (see Figure 1)

Figure 1

As discussions progressed, it was also clear that: a ) there was agreement that when resources are appropriately and effectively allocated to address not only needs, but also challenges and opportunities, it is possible to improve mid and long-term outcomes (see Figure 2); and b) that the approaches the group had discussed could both independently and collaboratively play an important role in addressing rural challenges and opportunities. (see Figure 3).

 Figure 2

Figure 3

Seeking more substance and texture related to the public and private options discussed, the group agreed to initiate an effort to compile a county-based assessment of needs, challenges, resources and opportunities; to identify both traditional and innovative avenues for engagement with those needs and opportunities; and to then assess how, if at all, investments of public, private and public-private investments of time, resources and capital might be applicable.

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Background & Context

VISION, COLLABORATION AND ACTION KEY TO BRIGHTER HORIZONS

Competitive Wisconsin, Inc.(CWI) is developing an Action Accelerator (1) process focused on supporting efforts to preserve and protect what is currently working in Wisconsin’s rural areas, while also determining how Wisconsin might best attract the people and revenue streams needed to build the new economically prosperous rural economy Wisconsin wants and needs.

Having worked with organizations and individuals active in efforts to address rural needs and respectful of the important work undertaken by the Blue Ribbon Commission on Rural Prosperity, CWI concluded that, “A majority of efforts to address rural economic opportunities are rightly focusing on preserving and protecting what is currently working. These initiatives should be maintained and, in many cases, need to be expanded.” But we must also focus on how Wisconsin can best attract the people and revenue streams needed to build our new economy.

To that end, CWI is working in collaboration with interested groups, organizations, individuals, and institutions to achieve research-based consensus on the nature of the challenges and opportunities; identify realistic, achievable options for achieving specified objectives; and help develop public consensus around the actions required to translate the vision into reality.

With invaluable input from the Wisconsin Counties Association; the Cooperative Network; the Wisconsin Dairy Business Association; Rural Wisconsin Hospital Cooperative; the Rural Wisconsin Partners; the Wisconsin REALTORS Association; Seneca Foods; and others, CWI proceeded to identify issues and approaches that would effectively and productively focus the Action Accelerator process on realistic, achievable options for achieving specified objectives.

This phase of the effort examined needs, challenges and and opportunities. In so doing, two other underlying concerns arose. First, it was clear that as bad as the rural situation had been going in to the pandemic, the health and economic impacts of COVID 19 had made it worse. Second, as the situation worsened not just in rural areas but everywhere, the incidence of well-intentioned, but insufficiently informed decision-making escalated in both the public and private sectors. Both of these phenomena underscored the need to concentrate the Action Accelerator on: 1) identifying urgent systemic priorities that could be addressed productively; 2) developing practical, sustainable actionable recommendations that could be implemented sooner rather than later; and 3) raising public and private sector decision-maker awareness, interest, understanding and support for the recommendations.

To these ends, CWI is committed to showcasing the need for action on, and identifying possible goals in four areas of urgent need and opportunity.

• Rural areas need people - Wisconsin now has only 7,000 farms - 40,000 fewer farms and farm families than it did in 1980, a population loss of some 100,000 workers, consumers, church-goers and community builders. A resurgence of communities, economies and prospects can only happen if we can bring people back to rural areas. They won’t come if there aren’t good jobs, interesting communities and broadband.
• Rural areas need competitive operational infrastructure capacity, including housing, transportation, health care and the increasingly essential access to the internet - Recognition of the importance of critical infrastructure elements has underscored the need to address the disparity of access on all of these fronts that separates our urban and rural areas.
• Rural areas need to expand their employment-based opportunities - Almost all rural areas have potential advantages that could serve as the starting point for the development of a jobs employment driven resurgence. Success depends on linking these advantages to activities that attract investors, customers and workers. Two examples come to mind. Broadband: The need to respond quickly suggests a build-out strategy that would identify rural and next to rural areas where broadband “hubs” already exist. The premise is that there are such hubs: 1) to which customers (i.e., businesses, schools, governments, etc.) could be connected; 2) from which infrastructure expansion could be connected; and 3) in which it is possible to identify data-driven, verifiable value-added streams of revenue that could be utilized appropriately to help fund the development and buildout of rural broadband from existing “hubs.” Viral Risk Management: There will be a serious commitment to, and investment in, better viral risk management in the coming years. Part of that investment will be focused on the management of critical materials and supplies such as PPE’s, ventilators, and testing materials. The need to develop a just-in-time distribution system capable of addressing major urban needs without paying urban real-estate and labor rates suggests that rural areas close to major urban areas could have siting advantages. Affected rural areas should focus on developing cluster activity (i.e., all the potentially related producers, suppliers, etc.) rather than just hoping for a sliver of the activity.
• Rural areas need to enhance their ability to show and monetize value - Recent research and trends suggest that its time to take a hard look at whether or not the standard assumptions being used to calculate, among other things, the value of differing levels of education; housing, health care, employment, quality of life and broadband access are working at peak efficiency now for our people and our economy.

In short, CWI is persuaded that a rural resurgence involves a re-imagining of the rural economy focused on expanding and diversifying a jobs and employment-driven economy. Agriculture should, of course, remain a major component of this new economy, but as consolidation continues, its contributions to the job-driven economy are more likely to be indirect and induced.

The Action Accelerator process is designed to expedite the development of consensus around, and implementation of, decisions reached collaboratively on the basis of sound research, expertise and experience. Competitive Wisconsin, Inc. is currently engaged in a BE BOLD Action Accelerator focused on addressing workforce recruitment and retention needs.

Rural Cooperative Network President and CEO Dan Smith shares his insights into the challenges that have been facing rural communities across Wisconsin for decades, the impact of COVID-19 on those challenges and a look at what needs to be done moving forward to ensure the long term viability of our unique rural economies across Wisconsin.

Overview and Objectives of Case Studies

Definition

• “Case Studies” represent profiles of programs that other states have in place to attract and retain workers
• Case studies will be used to highlight and benchmark against relevant initiatives that have been implemented elsewhere, and to identify program elements for consideration in future state Wisconsin initiatives

Identification and Research Methodology

• Deloitte first conducted a high level analysis of the universe of talent attraction / retention initiatives offered nationally to develop a categorization of distinct program types to be considered.  Note that any given talent initiative may have elements of multiple program types
• Deloitte then assessed existing programs within the State of Wisconsin in order to identify what types of programs were already well understood and being used, and which program design elements might be considered novel and valuable during future state planning.  Specifically, program types that do not have widespread presence in Wisconsin will be prioritized for further study
• Deloitte then then utilized additional key criteria (e.g. outcomes, competiveness) to evaluate remaining programs to assess which will be most valuable to highlight
• Finally, Deloitte ensured that case studies identified are funded / managed by a diverse set of different program sponsors and that they address a diverse set of career periods in a workers life

Sampling Considerations

Program Sponsor Types

• State Sponsored
• Local Sponsored
• University Sponsored
• Corporate Sponsored

Career Periods Addressed

• Pre-grad
• Post-grad
• Mid-career

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Executive Summary

Deloitte BB4 Private Sector Benefit Analysis

Context: In evaluating workforce recruitment and retention topics as part of BeBold 4, Deloitte explored the private sector value of workers from three key archetypes - a Nurse, a Welder and a Network Engineer. 

Objective: Quantify additional profits/cost savings brought by each worker archetype, assuming that workers are incentivized (through a workforce program) to remain with their employers for a period of 5 years.

Summary Analysis: Private sector employers can expect average annual benefits of ~$20-30K / worker / year across the three worker archetypes profiled below

Over a five year period, those private sector benefits amount to ~$110K - 160K / worker / year.

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Executive Summary

Deloitte quantified economic impact/value

Context: In evaluating workforce recruitment and retention topics as part of BeBold 4, Deloitte explored the public and private sector value of workers from three key archetypes - a Nurse, a Welder and a Network Engineer. 

Objective: Quantify additional profits/cost savings brought by each worker archetype, assuming that workers are incentivized (through a workforce program) to remain with their employers for a period of 5 years.

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