MUSKEGON — Muskegon area leaders have been given a roadmap for economic revitalization and have begun driving towards sustained business activity and growth.

The map is in the form of a targeted industry study conducted for economic development agency Muskegon Area First by Holland-based consulting firm Whittaker Associates Inc.

The study outlines the area’s strengths, weaknesses, opportunities and threats, plus looks at the current state of the economy in the region. It then recommends specific industry sectors that could mesh well with Muskegon County’s existing economic base.

According to Whittaker’s analysis, four industries show immediate promise — robotics/automation, medical equipment, food processing and transportation/marine-related industries. Long-term industry targets include the creative cluster (art suppliers, architectural services), sustainable development/R&D and software and Internet-related companies.

Muskegon Area First President Jim Edmonson said the industries targeted for immediate action are a good fit for Muskegon. Robotics and automation can build on Muskegon’s manufacturing strengths and medical device manufacturing can play off the region’s entry into life sciences. Close proximity to growers and transportation routes to major metropolitan areas as well as the county’s wastewater treatment facility makes Muskegon attractive to food processors. Manufacturing expertise coupled with access to Lake Michigan could entice transportation and marine-related industries to locate to Muskegon.

As part of the study, Whittaker Associates produced an extensive analysis of the prospective target industries including current trends, sales forecasts and an analysis of factors that influence site selection decisions. That information was used to generate a list of leads that MAF is now using to prospect for new business. An online database provides pertinent company information and contacts. According to Edmonson, there is a 20-40 percent likelihood that the companies on the list of prospects provided by Whittaker will execute an expansion over the next 18-24 months.

“We’re getting companies that they have spoken to generically to verify that what their data analysis showed them could be true, and these companies have plans sometime in the next 18-24 months to do an expansion,” said Edmonson.

MAF currently is working on two lists of 30 companies engaged in software development and manufacturing. Whittaker is providing economic development agency the names of 150 companies as part of its contract package.

“(The lists) make our business of attraction more manageable and less costly. Knowing that the percentage of companies is planning an expansion is sure better than throwing a dart at the wall,” said Edmonson.

The recommended target companies have annual sales ranging from$5-10 million and a minimum of 25 employees.

“These smaller companies are a little more nimble; they make decisions faster,” Edmonson told MiBiz. “We’d rather have lots of smaller companies than one big company.”

Edmonson explained that firms on the prospect lists would receive a letter of introduction from MAF. A follow-up call will be made within 14 days to gauge the executive management’s interest in relocating to Muskegon and offer any assistance or information requested. To do this, MAF is developing a rapid response team, Edmonson said.

“We’ve had the cities of Montague, Whitehall, Muskegon and Norton Shores interested as well as Muskegon County. Once we get going I’m sure we’ll have most of the cities and townships with industrial parks or available commercial properties involved.”

The online database is interactive, which will allow members of the team to keep track of initial contacts, log in follow-up calls or e-mails and make comments or suggestions that can be read by other members. E-mail reminders are automatically generated by the system as well.

Edmonson said he intends to use Whittaker’s prospect lists and database management system for two years. After that, he’ll evaluate the return on investment. MAF paid $30,000 for the study, a series of updated targeted industry prospect lists to be provided through May 2006 and access to the database and interactive management system. Any additional lists would cost $2,400.

“This study gives us more bang for the buck than a color glossy ad in some site selection magazine that maybe a corporate executive would look at, but probably not,” Edmonson said. “The intent was to target our limited resources and man hours on something that has a greater probability of return.”

Although Whittaker’s database and online management system streamlines MAF’s business attraction efforts, Edmonson stressed that business retention is still his organization’s top priority.

“Retention of businesses — getting local businesses to expand or creating new businesses in our incubator — is still our number one activity. But you still have to be in the business of attraction to fill in new opportunities and lead the community into industries that don’t exist here right now,” said Edmonson.

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This article appeared in the September 19, 2005 issue of MiBiz, read by upper management executives in West and Southwest Michigan. Print subscriptions are free to qualified individuals who do business in West and Southwest Michigan. For further information about MiBiz Network, visit www.mibiz.com.