Healthcare and Life Science Industry Assessment: Oakland County, Michigan

Oakland County, Michigan, was experiencing significant new developments by healthcare and life science companies, and retained Anderson Economic Group to assess the strength of its healthcare and life science industry, and to help determine if promoting the industry through an economic development strategy would be a worthwhile effort.

To complete this assessment, we started by defining the healthcare and life science industry. The definition was composed of NAICS codes, which were assembled into eight unique industry subsectors focusing manufacturing, research, and provision of care sectors. We then analyzed employment, establishments, and payroll data for each sector, and benchmarked Oakland County with other leading counties in Michigan. We also assessed workforce and education information, including occupational patterns, educational attainment, and university programs and degrees in healthcare and life science disciplines.

After assessing the current state of the industry and workforce, we next identified current investments and projects by healthcare and life science industry stakeholders. We then conducted a more detailed analysis of selected projects, including new training programs at a regional hospital, the economic impact of building and operating a proton beam cancer-treatment facility, and the economic impact of a new medical school at Oakland University.

We concluded our analysis by projecting industry employment levels from 2006 to 2018. Our employment projection model included a trend scenario, which assumed no initiative to expand the industry beyond natural demand levels, and a potential scenario, which assumed a county-directed initiative to promote the county and leverage its healthcare and life science assets.

The findings of our analysis were included in a 75-page report, complete with detailed data tables, employment projections, and methodological notes. The findings were also presented at a September 24, 2008 press conference in Oakland County, during which our CEO Patrick L. Anderson and Oakland County Executive L. Brooks Patterson presented the findings to the media and industry stakeholders. These findings have also been used by the county to create an industry recruitment taskforce and strategy.

Location Analysis and Market Analysis: Lansing Community College

Lansing Community College (LCC) desired to consolidate its multiple off-campus programs into fewer facilities, called Learning Centers, to offer better and more consistent service than could be provided when using facilities owned and operated by third parties. Anderson Economic Group was retained to provide a market analysis and location strategy to identify locations that offer the best access to potential students, and fulfill the requirements of the college.

As the baseline of our analysis, we completed a demographic assessment of the Lansing Community College service area using our Geographic Information System (GIS) and historical LCC student data. We then conducted a rigorous analysis of 25 regions in the college’s service area. We narrowed the list of potential markets based on population thresholds and projected student penetration rates, as well as other factors like transportation linkages, highway visibility, access, and proximity to other urban areas. We then assessed specific sites, and were able to recommend a location strategy aligning the college’s facility requirements with market opportunities and available sites.

We documented our market analysis, methodology, and findings in a report for the college. This included an executive summary, sections to detail our findings and recommendations, and a full data appendix with market demographics and trend information that the college can use in other planning efforts. The report was provided to the college’s director of learning centers, and used in their expansion plans.

Corridor Market Analysis and Retail Strategy: The Dorr Street Corridor Coalition, Toledo, Ohio

Anderson Economic Group was retained to develop a retail strategy for the Dorr Street corridor, a major east/west arterial road at the core of the Greater Toledo metropolitan area. This corridor connects the University of Toledo to the city’s downtown, passing through a number of culturally diverse neighborhoods along the way. The corridor was under-served in retail, requiring local residents to travel to other retail destinations for basic needs and competitive pricing.

In developing the retail strategy for the corridor, we conducted a supply-demand (gap) analysis, fieldwork within the corridor and Toledo retail market, delineation of a primary trade area, and qualification of the results using our expertise in the retail industry and first-hand knowledge gathered in the market. Based on our analyses we concluded that there was opportunity for a specific amount of new retail square footage in 35 categories. We recommended a split of the retail opportunity in three distinct nodes along the corridor, including two major intersections and a third clustering to better link the corridor to the University of Toledo.

Our analysis and strategy recommendations were documented in a report, and provided to The Collaborative, a planning and engineering firm in Toledo that was managing the redevelopment effort. They have used the report to guide their efforts and focus preliminary investments into projects with the greatest potential for large impacts.

Downtown Retail Market Strategy: St. Clair, Michigan DDA

The City of St. Clair and its Downtown Development Authority retained McKenna Associates to create a vision for downtown St. Clair. As a part of that effort, Anderson Economic Group was retained to develop a strategy for retail revitalization in the downtown.

Our retail market strategy analyzed the development potential for the community with an emphasis on economic catalysts to benefit retail.  In completing a supply/demand analysis, we determined that there was opportunity for new retail in 20 categories, and a clear need to better meet the wants and needs of both residents and visitors. We also presented strategies for invigorating retail and development in St. Clair, including: consolidating some existing businesses into a retail cluster, recruiting an additional anchor tenant, adding higher-quality dining options, and improving use of the riverfront.

Our analysis and findings were documented in a final report, complete with recommendations and strategy, and provided to the St. Clair DDA and McKenna Associates.

Market Analysis and Mixed-Use Development Strategy: Old Brooklyn Neighborhood, Cleveland, Ohio

The Old Brooklyn Community Development Corporation hired Anderson Economic Group to provide a comprehensive market analysis and strategy for their location in the Cleveland, Ohio region.

We began the study with a comprehensive analysis of the local and regional economies, demographics, and market trends. We also toured the market area, inventoried market supply and assessed local demand, and met with local stakeholders to gauge their views of the market and its strategic direction. We also reviewed existing planning efforts, past reports, and their current efforts, and developed a strategy to build on existing momentum and provide specific advise on the development potential for retail, housing, office space, and sports and recreational venues.

Upon completing our analysis, we prepared a final report and presentation for the Old Brooklyn Community Development Corporation. This included detailed data, custom maps of the market, specific strategies, and a concise executive summary.

Residential Real Estate Feasibility Study: Macatawa Development, LLC; Holland, Michigan

Anderson Economic Group was retained to provide our professional opinion regarding the development potential of a proposed residential development along Lake Michigan, just west of the City of Holland, Michigan.

The client, Macatawa Development LLC, was in early planning phases, and requested a preliminary assessment of their plans. We completed this through a combination of research in the existing market, field visits to the site and competing sites, limited analysis of available data on comparable for-sale units in the market, and a review of the development plans.

We provided the developer with a preliminary recommendations memo, outlining the opportunities in the market, the strengths of their plans, and also the risks associated with the project. We highlighted the unique locational attributes of the project (waterfront), noted the potential for the project to succeed, and recommended they consider a full demand analysis to ensure the highest and best use of the property.

Review of Existing Renaissance Zones/Federal Renewal Community Application: City of Detroit, Michigan

 The City of Detroit, founded in 1701, is one of the nation's largest cities, and the center of one of the nation's largest metropolitan areas. The City of Detroit sought the review of its existing Renaissance Zones, which were originally designated by the state in 1996 and then expanded with the assistance of our firm in 2000. The city again retained Anderson Economic Group to aid in the review, revise the criteria, examine opportunities and costs, and recommend action by the city. A review committee including our project team, the city's planning and development department, the Detroit Economic Growth Corporation, and the city assessor's office recommended that the city not extend their existing zones at the time, given the results of our cost/benefit analysis and statutory review.

The city requested our review of a new federal law establishing a “Renewal Community” economic incentive program. Our analysis revealed the city would be a candidate for such a designation, and we recommended that the city file an application with HUD.

Anderson Economic Group advised the City of Detroit Planning and Development Department during the Renewal Community application process, outlining an appropriate process, identifying specific tax benefits to employers and investors, preparing documents and graphics summarizing economic conditions, working with State economic development and housing officials to confirm a course of action, and analyzing census statistics to define the best qualified application area. Our project team, with the City of Detroit, produced and delivered to HUD the entire application packet within 15 business days.

HUD’s review process followed a competitive procedure outlined in the Code of Federal Regulations, under a federal law that limited designations to the 40 most qualified. The designation was awarded to the city on January 18, 2002, making it eligible for $17 billion in development and tax incentives.

Economic Damages Valuation: Patent Infringement

A small law firm in Toledo, Ohio retained AEG to calculate economic damages, after a chiropractor invented an orthopedic pillow. The pillow was designed to be placed between a person’s knees while sleeping to reduce back pain. In 2000, n was sued by Banyan Licensing on a claim that they had superior rights to the design through an existing patent.

The suit at hand was a legal malpractice suit where Anderson Economic Group calculated the chiropractor’s lost ability to collect royalty payments from the sale of the orthopedic pillow in the United States.

We prepared an expert report. Patrick Anderson provided deposition testimony about the report. Mr. Anderson also testified in the Court in Toledo. In addition, we provided an analysis of the opposing expert’s report, and questions to be posed to the opposing expert.

After the trial, AEG’s client got a favorable settlement offer.

Outsourcing Valuation Analysis: Cooper Wiring Devices, Inc.

A law firm engaged Anderson Economic Group, LLC on behalf of Cooper Wiring Devices, Inc. to examine outsourcing and to consider its impact specifically, the impact on consumers and the macroeconomic implications as a whole.

Our report first discusses the history of outsourcing, the economic theories, some important political turning points and the fundamental reasons companies outsource. We reviewed the prevalence of outsourcing and employment as well as the relationship between outsourcing and quality. Profiles of well known global companies in various business sectors that have chosen to outsource, such as Boeing and Xerox, were also analyzed.

Finally, we reviewed the outsourcing behavior of six competitors of Cooper Wiring Devices, including Leviton, and provided data showing what all six companies had outsourced to China and Mexico. We discuss why outsourcing is such an important business strategy for well run companies that must stay competitive in a global environment if they want to survive.

Facility for Rare Isotope Beams (FRIB) Economic Impact Michigan State University, U.S. Department of Energy

On December 11, 2008 the U.S. Department of Energy (DoE) announced that Michigan State University was awarded a $55 million grant to build a Facility for Rare Isotope Beams (FRIB). MSU’s most notable competition for the facility was the Argonne National Laboratory, located near Chicago, Illinois.