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.