The Gazelle Gazette is a monthly newsletter showcasing a glimpse of what real intelligence and artificial intelligence can mean for your investment attraction and lead generation success as economic development professionals.
Webinar series for Gazelle.ai and ROI
We are very pleased to be launching a webinar series for our clients, featuring the services and practical applications of both Gazelle.ai and ROI Research on Investment.
The webinars will focus solely on one thing: providing you with more tools to optimize your performance and that of your organization.
The first 45-minute session will be on Gazelle.ai. Even if you’ve seen it in action previously, this session is must-see, as we have added a number of new features in recent months.
During this webinar, you’ll learn about the wide number of advantages of the platform, including:
• The benefits of using artificial intelligence algorithms to identify early-stage expansion signals.
• How economic developers are using Gazelle.ai for investment attraction as well as business retention and expansion.
• How Gazelle.ai can simplify your economic development efforts and maximize your potential.
We hope you can join us for this session – and for all the upcoming webinars – as we want to help you close out this year strong and carry that momentum into 2018.
It seems we’re at the right place at the right time, as the term “Gazelle” hits the mainstream.
A recent article in the Economisthighlights the competitive strength of the U.S. economy, moving up from 3rd place to second in the most recent World Economic Forum Global Competitiveness Survey.
In particular, it mentions the 30,000 “gazelles” among the 4.4 million companies created in the past 10 years: “These firms have a disproportionate impact on job creation and innovation. They pack a powerful punch.”
Also notable is the fact that the gazelles are appearing not only in conventional hot spots like Silicon Valley, but in more “heartland” cities like Nashville and Columbus.
Great news for EDOs in these areas of course, and even greater news for Gazelle.ai subscribers, who can uncover high-growth gazelles at a very early stage, thanks to the access provided by A) the platform’s extensive VC-funding data with over 100,000 companies, and B) the strength of the U.S.-based data contained within the Gazelle.ai platform in particular.
Top 10 Fastest-Growing Cities in the U.S.
They grow up so fast! Have a look at this list from Forbes – some familiar names of course, but some surprises in here for sure. Maybe some of their growth tactics are worth looking into, for some best practices to incorporate into your own organization? Or maybe you’re already on this list – in which case we say “kudos”!
10. Austin, Texas
9. San Francisco, California
8. Jacksonville, Florida
7. Raleigh, North Carolina
6. Riverside, California
5. Salt Lake City, Utah
4. Charlotte, North Carolina
3. Nashville, Tennessee
2. Orlando, Florida
1. Grand Rapids, Michigan
Challenging traditional “Gazelle” hotspots
When identifying target regions for business recruitment efforts, the answer to the question “where is the growth?” depends on whether the focus is on sales or job growth.
What type of companies contribute to job growth, and should therefore be the target of economic development and business attraction efforts?
This is an ongoing question among economists and policy makers. We dug a little deeper to try to answer it.
The history of “gazelles”, aka high-revenue growth firms, has typically highlighted the successes of Silicon Valley or similar high-tech, high-skill regions. As hotbeds of start-up entrepreneurship and high-growth firms, they attract a lot of attention.
Only recently, however, the focus has shifted away from equating high-growth with start-ups and technology sectors with a pure revenue growth focus to attract investment, and moving towards who is actually creating sustainable jobs. Finding regions that foster sustainable growth companies ready for expansion have a track record of both revenue and job growth in the target industry.
For example, the automotive interior industry has been on a growth path spurred by record car sales in 2016, with 22 states reporting sales growth of 10% or higher between 2014 and 2016. At the same time, only 11 states experienced strong job growth.
The top 10 counties for the automotive interior industry. Sales in green: Job growth in yellow
As per the illustration above, diving deeper into smaller regions for targeting automotive interiors, we find that out of the top 10 counties only half have ranked on top for both sales and job growth between 2014 and 2016, but six of them also ranked in the top 10 in the previous year. Some are in typical automotive regions such as Alabama or Indiana, others are in smaller, less-known locations such as Cleveland, Mississippi, home to Faurecia Automotive Seating – part of the international Faurecia group with 21 manufacturing locations in the US alone and overall 300 locations worldwide.
Conclusion? In the hunt for recruitment zones, using only one measure of growth – whether it’s industry specialization, job growth or sales growth – will inevitably mean good leads fall through the cracks. A more diversified approach will create a more effective target list.
Nadine Jeserich, VP Analytics at Gazelle.ai, provides a new “data dig” each month. Her excellent knowledge and research insights are being used for cluster analysis and benchmarking by a growing number of our clients. Contact Nadine to learn more.
Congrats! By receiving this – the first Gazelle.ai monthly newsletter – you’ve instantly become 15% smarter and more interesting at the water cooler.
Our newsletter features information from the Gazelle.ai team – straight-up business intelligence from the system itself, along with insights from our resident Ph.D’s who are deep into the data. And we’ll throw in some interesting information nuggets from the outside world too.
We’re hoping to make this a valuable addition to your work life, so feel free to send us any feedback to make it better at firstname.lastname@example.org.
Gazelle.ai Company Finder Upgrade
We’ve updated the look and feel (ok, mostly the look – the computer screen still feels the same) of our Company Finder section in Gazelle.ai.
You can now combine all search functions – NAICS, Keywords. Clusters and US Map.
This allows you to create highly specific targeted searches to suit your needs.
We’ve just added powerful information to our database from Crunchbase – the largest crowd-sourced database for tracking VC and non-VC high-tech start-ups.
And we’ve hired Dr. Hugh Kelley as our Chief Economist. Dr. Kelley is a machine learning and AI expert who will continue to develop the algorithms we use to identify early-stage growth and corporate expansion.
We’ll be all over the conference like a site selector on a fresh greenfield location (inside joke). From our big booth to a special panel to the Gazelle.ai launch event at Casa Loma on the final evening, we will be seen and heard.
The idea behind Gazelle.ai is to help you do your job with greater business intelligence and ahead-of-the-curve knowledge.
The idea behind the IEDC conference is to bring the best and brightest in the world of economic development to one place.
Sounds like a match made in EDO heaven.
A separate email invitation is coming your way later this month. If you have any questions now or would like to PRE-pre-register, please send an email to email@example.com.
Go small or go home
Wait, that’s not the expression is it?
It is for Faith Popcorn, long-time trendwatching icon. She says the next few years to come will require companies to appear less monolithic, less dominating in order to appeal to consumers.
“Big is no longer trustworthy. Consumers are shrinking their networks. Brands need to make themselves seem smaller to earn consumers’ trust. McDonald’s, Coke – those icons are toppling. Now everyone wants small, local, handmade, artisanal.”
As an example, Etsy, the peer-to-peer e-commerce site where global artisans sell their goods, started with $175,000 sales in 2006 and ten years later reached $2.4 billion.
They are moving into the AI space as well, recently buying startup AI software provider Blackbird Technologies. Etsy made the move in part to use artificial intelligence to improve its search features.
Hmm, sounds like the kind of smart move that smart companies are making…
Fancy food, greater growth
Each month, Dr. Nadine Jeserich, Vice-President Analytics for Gazelle.ai, drills down to provide a data analysis on a topic we’re talking about, coupled with a handy heat map and chart derived directly from Gazelle.ai.
Since we mentioned the “smaller, artisanal” trend earlier, now seems like a fine time to get her insights on specialty food.
• Consumers are increasing focus on customized food products to suit their lifestyle, coupled with environmental concerns and a desire to be informed about the origin and content of the products they consume has driven the rise of “buying local” and environmentally friendly products.
• Inc Magazine recently listed specialty food as one of the top 8 industries for starting a business today.
• Whether it’s specialty beverage producers such as Kohana Coffee that has made it into the Inc.5000 three years in a row with less than 50 employees, or LifeTree Manufacturing involved in nutraceuticals and organic functional foods starting less than 6 years with 10 employees, the market shows plenty of niche market opportunities especially in specialty food manufacturing.
• Industries such as coffee and tea manufacturing that can profit from these shifting consumer preferences have seen increasing profit margins and annualized employment growth rates of 4-5% over the past five years. Denver, Colorado has emerged as a new hotspot with a large and increasing number of growth businesses.
Here it is – the second-ever Gazelle.ai monthly newsletter, and officially the first under the exciting name of “The Gazelle Gazette”.
Gazelle.ai and Crunchbase
The Crunchbase data we’ve acquired has now been fully added to the Gazelle.ai platform. This data provides Gazelle.ai users key information on companies receiving VC-funding – a key sign of early-stage growth and/or expansion.
Venture capital is a key indicator of corporate growth and expansion. Within Gazelle.ai, you can now see a company’s VC funding summary, including the most recent funding round and amount of capital received, along with lead investor information – including highly relevant details on the investors’ key contact people and investment history.
You can also see the VC-funded company executive staff bios, past employment and education.
TIP: By learning detailed background information, you could reach out to a key decision-maker from a VC-funded company that graduated from your local college/university, and therefore more open to considering your region for expansion.
We’re aiming to make a splash at the show, in a number of ways. And your time is obviously valuable, so we’ve decided to make it easy for you to plan your days at IEDC 2017.
1. Attend our sponsored presentation
• Sunday September 17th at 3:45pm, hosted by ROI/Gazelle.ai President and Founder Steven Jast:
Gazelle.ai: A Platform for Harnessing Big Data and Machine Learning for Investment Attraction:
2. Attend our sponsored presentation
The first 50 visitors to register at the booth for a demo of Gazelle.ai will receive some very cool Adidas Gazelle shoes. All other visitors will receive other cool swag, not to mention tons of information on the full services of ROI Research on Investment and Gazelle.ai.
Tuesday, September 19th 6:30 – 8:00 pm as part of the IEDC Conference Networking Reception
The Conservatory, Casa Loma
Official toast starts at 7:15pm
So there you have it! Your IEDC conference itinerary, as easy as 1-2-3…
The big news about Brexit has been eclipsed in recent months by various global news items, including an actual eclipse.
But behind the scenes, there is plenty of jockeying amongst different European cities to reap the benefits of certain industries in the UK who looking to ensure their closing borders don’t lead to a loss of business.
A picturesque six-hour train ride to the East from the Netherlands’ capital city, Berlin is making itself an attractive option for the Brexiting business as well. Not soon after the historic vote to break away from the EU, a cheeky mobile billboard truck was spotted driving around London saying “Keep Calm and Move to Berlin”.
Why does this matter, on both sides of the Atlantic?
Talent and GDP, essentially. High-tech workers can boost any city’s brainpower, from Berlin to Baton Rouge. And as Germany’s Digital Strategy 2025 explains: “Germany’s GDP could rise by an additional €82 billion if digital technologies and German companies’ ability to use them are aggressively pursued.”
With the UK’s financial and high-tech clout looking for safe spaces outside its border, figures like this are worth paying attention to, for economic development regions of any size, anywhere.
Unpacking a Solid Growth Industry
Each month, Dr. Nadine Jeserich, Vice-President Analytics for Gazelle.ai, drills down to provide a data analysis on a topic we’re talking about, coupled with a handy chart derived from Gazelle.ai.
This month, we look at PACK EXPO Las Vegas (September 25-27, 2017).
PACK EXPO is one of the largest and most comprehensive packaging events in North America. The largest segment of the industry, representing 40% of the global market, is food packaging – expected to grow by over 3% annually.
Consumer preferences for portion control and portability have supported the growth of small and resealable food and drink packaging.
Plastics (not a typo!) Bag and Pouch Manufacturing has been at the forefront of the growth with growing profit margins and annual sales growth rates of over 4% since 2014.
Companies paving the way are packaging companies such as Sealed Air Corp. and American Packaging, or vertically integrated companies such as Hearthside Food Solutions.