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Invitation List: County staff looks to industry clusters in new marketing strategy
To further Loudoun's business base and build the county's economy, county staff members are focusing upcoming marketing strategies on industry clusters.
Clusters are groups of businesses and organizations that can work together within an industry. They can be a strong draw in convincing new businesses to move to Loudoun.
Through traditional marketing, the county attracts potential businesses by promoting the county's quality of life and atmosphere, among its other assets. Beginning July 1, through cluster marketing, the county will be proactive in finding and recruiting businesses that will work with existing businesses in the county.
For example, Washington Dulles International Airport's dominance in Loudoun's business realm means businesses such as food caterers or security firms would benefit by coming to Loudoun because the airport could be a huge client of their businesses. The airport, in turn, benefits because suppliers are local and the costs of shipping are cut down.
Clusters that have been identified as strong business sectors already present in the county are aerospace, aviation and cargo, defense and federal, information and communication technology, and life sciences, as well as international programs and initiatives.
“There is a desire to be proactive in these areas,” said County Supervisor Lori Waters (R-Broad Run), chairwoman of the Board of Supervisors' Economic Development Committee. “We need to look at how [funds for the clusters] are allocated.”
Last month, county supervisors approved $340,000 for the Economic Development Department for extra personnel and development. Department staff will focus the funds, which they receive July 1, for development on this cluster strategy.
“This is the best thinking of our priorities in the suburban area,” said Larry Rosenstrauch, director of the Economic Development Department, about the cluster options he and his staff presented to the Economic Development Committee at its monthly meeting on May 8. He also pointed out that the county already has cluster marketing with the tourism and rural business sectors.
The cluster marketing mentality is one that has been around since the 1800s, according to Tricia Simons, manager of research and operations for the Economic Development Department. And looking at the foundation – bringing all business aspects of one industry to a concentrated area – there is not much of a downfall for the county or the businesses.
Jeff Monroe, executive vice president of Dupont Fabros Technology Inc., a business that develops and operates wholesale data centers with a base in Ashburn, said, “Anything that will continue to help us with the momentum we have is a good thing. And anything that is tailored to get the word out [about businesses in the county], I can't see where anyone would be against that.”
James Bennett, president of the Metropolitan Washington Airports Authority, agreed, saying, “The cluster program will help raise awareness of the economic importance of air cargo to the region and will assist us in identifying key businesses involved in the air freight industry.”
Howard Hughes Medical Institute's Janelia Farm campus was incorporated into the Life Science cluster by department staff. Avice Meehan, vice president of communications and public affairs for HHMI, said Janelia Farm is unique and may not really work in the cluster mentality of marketing, but the campus will still benefit from the county's efforts.
“We are a hybrid of research and development of technology, but we are not a business,” Meehan said. “We straddle two clusters, but it is terrific for us because it may help in recruitment of technology personnel. And years from now, the technology [that Janelia researchers develop] can be commercialized and then we can become partners [with those businesses brought in by the clusters].”
Simons pointed out that clusters don't work in every region, especially if region is “trying to create a cluster from nothing.” But Loudoun is not one of those regions, she said, because the county has great business diversity.
Beth Hain, manager of business investment at the department, echoed Simons' statements by saying, “Regardless of which clusters are chosen, the county has a healthy environment in all the cluster areas for the long term.”
Simons said that once the economic committee zeros in on which clusters to focus on first, she will do a more in-depth analysis through interviews with current businesses in the county and focus groups.
County staff and business owners pointed out that one of the biggest factors to be aware of in a cluster strategy is that it will not happen overnight, or even in the first year.
“[Cluster strategies] require patience and dedication,” said Dorri O'Brien Morin, manager of strategic initiatives and communications at the Economic Development Department. “We need a five-year strategy.”
The supervisor's economic committee was made aware of this and decided that once clusters are chosen, they will set up benchmarks for each, to make sure they are on the right path throughout the process.
Economic committee members are expected to discuss the business clusters at their next meeting on June 19 in the government building.
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