The Main Thing:

My daughter works in the hospitality industry in Washington, D.C. I’ve been wondering if things are slowing down regarding people dying out and events happening. So far, not so much, says she, but people are watching and waiting. If you think about the many people in the Washington, D.C. area who have been laid off (and rehired), spending discretionary dollars is probably the last thing on their minds.

What will be the ripple effect of this 'Bull Doge-ing' on the D.C. economy? How might it reverberate across the nation and the globe? And what about its influence on economic development? These are the questions that demand our attention and discussion.

Read my thoughts about how to cope with these unprecedented cuts and who we should blame if that is how you like to operate (blaming someone, that is).

​Read more here. ​

Focus on Economic Development

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​The Mall of Tomorrow: Evolving Beyond Retail

I grew up going to the mall. It was part of everyday life. I even took a first date to the mall. It was a ‘Christmas shopping’ date. It went well. But as everyone has noticed the traditional shopping mall is undergoing a radical transformation, evolving from purely retail spaces into mixed-use lifestyle centers that combine retail with dining, entertainment, community spaces, health and wellness facilities, and residential units. In the article The Future of the Mall and Lifestyle Center (by Building Design & Construction) industry experts note that today's consumers seek more than shopping—they desire immersive destinations that offer emotional engagement, social interaction, and experiences unavailable online. This shift is happening primarily through reimagining existing malls rather than new construction, with many developers converting vacant anchor stores into food and entertainment venues or residential spaces that now occupy up to half of mall footprints.

Why this Matters: This transformation presents significant opportunities to revitalize underperforming commercial spaces and create new economic ecosystems within communities. The mixed-use model creates diverse revenue streams and increases property values while simultaneously addressing multiple community needs, from housing shortages to entertainment options. Economic developers can leverage these projects to attract innovative businesses, create employment opportunities across multiple sectors, and build vibrant community hubs that increase quality of life.

Take Action: Facilitate partnerships between developers, property owners, local government, and businesses to repurpose aging retail infrastructure. Economic developers can help transform commercial liabilities into assets that generate sustainable growth and enhance community resilience against changing market conditions.

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Tech Innovation Leaders: Cities Emerging Technologies Index 2024

Many communities like to think they are ‘Tech Ready,’ or some form of advanced status in that realm. But are you really? The 2024 Cities Emerging Technologies Index (CETI), sponsored by NYU SPS, benchmarks the 55 most populated US metropolitan areas on their capacity to embrace and innovate with emerging technologies like AI and the metaverse. The comprehensive index analyzes policies, infrastructure, social dynamics, and economic conditions to identify which cities are leading in technology adoption. Key findings reveal that entertainment options, robust economic policies, well-developed infrastructure, and forward-thinking approaches to AI and the metaverse are crucial factors in creating thriving tech ecosystems. San Jose tops the rankings with a score of 66.5, followed by San Francisco, New York, Washington DC, and Seattle.

Why this Matters: This index provides valuable insights into what drives technological innovation and economic growth in metropolitan areas, offering a blueprint for communities seeking to enhance their tech readiness. Economic developers can use this information to identify which factors—entertainment options, infrastructure investments, policy frameworks, or education initiatives—might yield the greatest returns for their specific regions.

Take Action: If this is part of your economic development strategic plan, then economic development professionals should conduct a local tech readiness assessment against CETI benchmarks, then focus on improving digital infrastructure, enhancing quality-of-life amenities to attract tech talent, and fostering partnerships between educational institutions and industry. Creating innovation districts with streamlined permitting processes and targeted incentives can help concentrate resources while implementing tech-focused workforce development programs ensures a pipeline of skilled workers for emerging technologies.

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Doubling Down on Drugs

Pharmaceutical giant Eli Lilly is dramatically expanding its manufacturing footprint in the United States, more than doubling its previously announced investment to over $50 billion. As reported in the BioPharmaDive article, Lilly expands US manufacturing build-out with $50B target (by Ned Pagliarulo) the Indianapolis-based company, maker of the popular obesity drug Zepbound, will build four new production facilities, with three dedicated to manufacturing active pharmaceutical ingredients typically imported from abroad. This historic investment is expected to create more than 3,000 permanent jobs and nearly 10,000 construction positions. While company CEO David Ricks cites confidence in Lilly's drug pipeline as the primary motivation, the announcement comes just days after a meeting with President Trump, who had threatened pharmaceutical tariffs.

Why this Matters -- This massive investment demonstrates the potential for reshoring critical manufacturing capabilities, particularly in high-value industries like pharmaceuticals. The scale of Lilly's commitment provides economic developers with a compelling case study of how large-scale manufacturing investments can generate both direct employment and significant construction activity. With Lilly actively negotiating with multiple states for facility locations, this represents a major business attraction opportunity that extends beyond the pharmaceutical industry itself to supporting sectors, supply chains, and regional innovation ecosystems.

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​Take Action: Economic developers should identify their region's competitive advantages for pharmaceutical manufacturing, including workforce capabilities, transportation infrastructure, and access to research institutions. Creating targeted incentive packages that address specific pharmaceutical manufacturing needs while emphasizing speed-to-market advantages could position communities favorably in site selection processes. Preparing shovel-ready sites with pre-permitted utilities and environmental clearances will appeal to companies facing tight production timelines, while developing specialized workforce training programs with community colleges can demonstrate a commitment to supplying the specialized talent these facilities require.

Other Articles of Interest this week:

Green Economy-- Introducing the climate action planning guide for cities -- By C40 | Website with a number of guides to help you move forward with your climate plan whether you are just starting or are on your fifth iteration.

Leadership-- How to Get the Ear of Your CEO—And What to Say When You Have It by Rob Apatoff | KelloggInsight -- Say you’re an executive aspiring to join the C-Suite. Your access to the firm’s CEO may be limited. But understanding when and how to communicate issues and opportunities upward can make a big difference to your success. And, for that matter, your company’s.

Technology -- Neom is reportedly turning into a financial disaster, except for McKinsey & Co. by Connie Loizos | TechCrunch -- A new study suggests that Saudi Arabia’s now eight-year-old Neom project — a futuristic, carbon-neutral, 105-mile-long linear city envisioned by Crown Prince Mohammed bin Salman — has become a financial sinkhole.

AI -- 'Massive Shift' Ahead for Car Dealers as AI Gains Traction by Eileen Falkenberg-Hull | The auto industry is going to undergo a "massive shift" in the next decade, Dev Patnaik, CEO of Jump Associates, a strategy and innovation firm, told Newsweek. "Retail is going crazy in the next five to seven years.…It's not stopping. It's only accelerating." Much of that change is due to artificial intelligence (AI), he said.

Mentoring-- How To Embrace Mutual Mentorship by Robert Logemann | Chief Executive --

If the coaches are subject matter experts, communicate effectively, and are passionate about the subject, ages and titles shouldn’t matter.

Something You Should Read:

Shifting Economic Development: From Business Attraction to People-First Strategies

Recently, I came upon this newsletter and organization based in Philadelphia that promotes entrepreneurship and local business growth. In a recent newsletter, I highlighted their podcast, which includes Victor Hwang, formerly of the Kauffman Foundation, now promoting the concept of 'Right to Start,' which advocates for removing barriers to entrepreneurship.

For the most part, the author (who is not noted), who I assume is the organization's collective voice, gets it right. Or, more accurately, I agree with what he says. He says that economic development is fundamentally transforming from a business-to-business (B2B) model focused on attracting companies to a business-to-consumer (B2C) approach centered on attracting and retaining people.

This shift responds to changing demographics across the United States—declining birth rates, fluctuating immigration, and decreasing population mobility—making human capital the primary driver of regional economic prosperity. The article cites the Amazon HQ2 competition in 2017-2018, which exemplified this change, with communities emphasizing workforce strengths and cultural amenities over traditional business incentives.

According to the author, entrepreneurship-led development strategies have consequently flourished, fostering greater collaboration between economic development organizations and their tourism counterpart.

Place-making and entrepreneurship strategies existed long before the Amazon HQ pageant show, but I don't disagree with the premise.

The declining mobility of Americans and population loss in many states represent an existential challenge to traditional economic development models. Rather than relying primarily on business attraction through tax incentives and infrastructure investments, economic developers must now excel at telling authentic stories that connect with individuals directly. This requires fundamentally different skills, partnerships, and metrics than traditional B2B approaches.

From the article:

Tell the stories of the people — the scientists and entrepreneurs, the technologists and the organizers — who already love where they live. Probe the problems, and extol the virtue. Do it over and over and over again. Bring these people together, and invite their friends. If 20th century economic development was on an industrial scale, then the interconnectedness of the web allows this 21st strategy to be on a human scale. Trust your own experience."

Economic developers who build partnerships with independent media outlets and content creators who can authentically showcase local entrepreneurs and innovators will be successful. Investing in digital marketing strategies that highlight genuine community stories, such as a local entrepreneur's journey or a community project's impact, rather than polished corporate messaging can also provide success.

The article's main message, which you can read here, is that economic developers and communities should create opportunities for potential residents to build relationships with current community members through events, digital networks, and ambassador programs.

They should measure success through engagement metrics and relationship-building outcomes rather than traditional marketing reach and develop long-term storytelling initiatives that continuously reinforce community identity. This is not about quick wins but about building a lasting narrative that resonates with the community over time.

Overheard :

“If we wait until we’re ready, we’ll be waiting for the rest of our lives.”

- Lemony Snicket
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Rabbit Hole:

That’s how you know

Poetry often escapes me. Someone once told me that to understand poetry, one must read it out loud while standing or walking. In this video, the author stands, or more accurately, walks, and recites his work for us.
​

I don't pursue poetry, but this one spoke to me. I hope it speaks to you, too.

​Watch and listen here (also written)​

Ski Like You Mean it

In my youth, I took up downhill skiing. We lived close enough to some hills in Wisconsin and Michigan to allow me to go skiing often, even sometimes on school nights. I continued skiing in college but have not been skiing since. Life got busy with work and other responsibilities, and I haven't had the chance to hit the slopes again. But that’s a long time, and perhaps I will get back on the hill one day.

Over the years, I have grown fond of ski videos, especially those sponsored by Red Bull. You know which ones I am talking about—the videos where they drop off a skier on top of an impossibly high and craggy peak, and we watch as the skier drops hundreds of feet into the deepest powder and pray that they don’t incite an avalanche (and sometimes they do). I can't help but feel a rush of adrenaline and a tinge of fear as I watch these videos. Those are the videos I love watching.

Here is another Red Bull-sponsored video of a group of skiers at a traditional resort jumping, careening through numerous jumps and pipes, and putting on a spectacular display of skill on the slopes.

My favorites are the scenes where three skiers perform a simultaneous jump of amazing complexity (at 2:06) and jump over a ski lift (at 2:43).

Finally, it should be noted that the camera operator (who, I believe, was taken by a drone) deserves immense credit.

​Watch the video here.

Here is the Red Bull Snow YouTube site so you can watch more videos of skiing.

Maps

The President's interest in Greenland, viewing it as a potential real estate deal, has raised concerns. While he may see it as a strategic move, it's essential to consider the implications.

For instance, if he used a Mercator projection map (a flat map), he might have misconceptions about Greenland's size. Greenland is about as long as the United States if projected onto a map of the USA (see pic). Africa, on the other hand, is about 14 times larger than Greenland.

My understanding of these map projection issues comes from a fantastic resource called True Size. This unique website allows you to select any geographic entity, such as a country, state, or province, and overlay it onto any part of the map.

The interactive tool provides a clear visual representation of how these entities compare in size. It's fun to play with.

And if you want to understand the Mercator map and why Greenland is so huge (on the map), watch this video.​

A Special Opportunity to Solve Your Most Pressing Problem.

In my conversations with economic development professionals over the past 30 years, one question consistently arises: "How do we quantify the impact of small business support programs?"

Today, I'm excited to share a new tool that answers this question for our Circles of Seven (C7) mentorship program.

Our new interactive calculator allows you to estimate the potential economic benefits of implementing the C7 program in your specific community. Input a few key metrics about your area, and instantly see projections for:

• Direct revenue growth for participating businesses
• Total economic impact through multiplier effects
• New jobs created and existing jobs retained
• Business survival improvement rates
• Return on investment for program dollars

Beyond the Numbers: Building a Stronger Business Ecosystem

While the calculator focuses on quantifiable metrics, remember that C7 delivers benefits that extend beyond what we can measure:

• Creating a self-sustaining culture of mentorship
• Building stronger connections between business leaders
• Developing leadership skills that benefit the entire community
• Enhancing your community's appeal to prospective businesses

A Special Opportunity for Five Communities

In conjunction with this new tool, I'm announcing a special Community Partnership Model for the C7 program. This new approach allows communities to implement the complete program at just 30% of the standard investment for Year One.

Only five communities will be selected for this partnership opportunity. The application window closes soon, so I encourage you to:

1. Try the calculator to see your potential ROI
2. Schedule a 30-minute consultation to discuss your results
3. Determine if your community is a good fit for one of these limited spots

​Calculate Your C7 Economic Impact →​

You can apply to join the C7 Community Partnership Program without obligation. Applying means you're interested, and it will start a conversation. Apply here to get on the waiting list.

If you have questions about the program, please feel free to schedule a conversation here.

As always, I welcome your questions and feedback. Simply reply to this email to start a conversation.

P.S. If you know colleagues in other communities who might benefit from this opportunity, please forward this newsletter. The calculator is freely available to anyone interested in exploring the economic impact of structured mentorship programs.

Thanks for Reading

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Whenever you’re ready, there are several ways I can help you:

1. Economic Development: If you are looking to supercharge your economic development organization, I can help by strategizing and developing a roadmap to success. Set up a time to talk to me here.

2. Culture Change; Is your organization changing? Would you like to create an asset out of your culture? Do you know how to assess team strengths? Let me help you. I'm a certified culture change practitioner. Set up a time to talk to me here.

3. The Green Economy; The world is changing. Some of it is positive, and some of the change is not. Let me help you develop green economy opportunities for your community. Set up some time to talk about here.​

4. Mentoring Programs: Circles of Seven (C7) is a proven and award-winning model for mentoring. Whether it is for business or your community leadership program, I can develop a mentoring program for you. Let's talk about your situation. Set up a time here. ​

If you have any thoughts or comments regarding any articles in this newsletter please feel free to contact me through email at martin@martinkarlconsulting.com.​

You can review my services and offerings at www.martinkarlconsulting.com​

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