Resources: Articles

Sometimes 1+1=3: The many faces of economic development
By W. Roderic Covey, Founder

Some time ago, an astute general sales manager for one of our major clients shared an observation: “It is far more productive to keep a current customer than to chase after two new ones.” History proved him right as I observed his company (Applied Industrial Technologies, formerly Bearings, Inc.) become No. 1 in its field.

This principle applies also to economic development activity for cities, counties and regions; economic development managers must indeed continue luring companies to move to their neighborhoods, but a failure to allocate equal effort to keep current customers can be woefully counter-productive.

We’ve witnessed in our region many, many scenarios that validate the need to keep every option open—in steel-centered Cleveland, rubber-centered Akron and our city, North Canton, which has suffered the recent loss of the 100-year-old Hoover Company. The enormous sweeper factory is gaining new firms—thanks to the efforts of the city, state, developer and Stark Development Board—but it will take time to replace the loss of those high-paying jobs of yesteryear.

Meanwhile, smaller firms in a wide range of industries are slowly but surely filling the gap—three jobs here, seven jobs there—they add up fast.
 
Our firm was ready to be a player in this scenario. Three years ago, two solid, profitable advertising/marketing agencies were almost lost to North Canton—Covey & Koons, Ltd. and Odell Advertising/Marketing. Both had served hundreds of area firms for more than 40 years. C&K sought more room for growth; Odell’s owner, David Llewellyn, wanted to retire. The two completed a merger, and a new firm was launched—Covey-Odell Advertising, Ltd.

The happy ending: 8 jobs and $4 million in sales saved, and C&K moved into the larger Odell Building, adjusting its staff to serve the longer client list. The new firm has gained new accounts and is on a solid track for future growth. Additionally, advertising/marketing skills remained close to area firms needing those same skills. It’s entrepreneurism at its best.

At its recent 50th Awards Dinner, North Canton Chamber of Commerce gave Business of the Year awards to three local firms. Two were larger than Covey-Odell, but we are proud to represent the other face of economic development.