I am thinking about two meetings I had last week. In each, the question posed to me was: “how do I continue to grow my business?” One was focused more on getting the word out and the other more on navigating the strategy of his growth.
 
Together these two conversations are especially interesting because they illustrate a question I’ve been noodling on. What is the value of a chamber…. really?
 
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I first met with the Second Chance guy. He is building a professional life and business after being incarcerated. Then I met with the Entrepreneur, who wanted to talk about his aspirations to break out and start his own company.
 
For both, my counsel was the same: show up and be open to what develops.
Objection: “I don’t have time to build relationships.”
My response: “You don’t have time NOT to.”
 
Let me explain.
 
I think back to my own journey of professional development in this region. I spent 10 years working in Minneapolis, then came to my first job in St. Paul in 2006, with zero connections to leverage and zero power of my own that required others to need me. I struggled socially, but I didn’t think it mattered because I thought working hard would carry me. And, I figured, I’d meet people soon enough.
 
Business was good but I wasn’t connecting with people very well. I felt isolated.  Through a rather circuitous journey, I’ve learned three things that have transformed my professional life:

1. Instead of chasing someone I want to meet, stop and turn around to see who’s been chasing me.  Meet that person and build a relationship there.
2. Stop worrying about competing with someone else on his/her terms. I had to figure out my own style and walk that out.
3. Show up and be open to what develops.

 
They seem like easy things, but all require a release of some kind. Power, competition, control. The benefits have been extraordinary. My relationships at this stage of my life are richer than they’ve ever been. My friendships are real, trustworthy. And my empathy has expanded as well.
 
And all this was learned through my 20+ years of engagement with a chamber of commerce.
 
So, back to the Second Chance Guy and the Entrepreneur. Again, for both my counsel was the same: show up and be open to what develops. People need to know who you are before they are willing to trust you with their business. Your Chamber facilitates introductions, relationship building. We provide the opportunity, the platform as it were, for you to step in and engage.
 
And for those of you who are “full,” who have built your network and don’t feel the need to show up, please - invest in our work and the growth of your newer employees by reminding them that your chamber membership applies to EVERYONE in your organization. Bring them to an event or encourage a group of newer employees to attend together and pass the baton and help them understand the powerful value of networking and making connections that count to your business and their career growth and community engagement. Your chamber continues to advance your priorities, supports today’s leaders and helps develop tomorrow’s – who just might wind up working with you!
 
See you in the trenches,
B

I have a passion for economic development and enjoy tracking progress on the various projects underway in St. Paul.  In case you missed the latest updates on 3 of the biggest, I am happy to share them with you this week!

Before I do, don’t forget to participate in the Fed’s latest business survey. Share your feedback about current economic conditions and help the Minneapolis Fed understand the impact that the economy is having on your business. Take the 7-minute survey here.

The Heights – Last Tuesday we celebrated with the Saint Paul Port Authority, Mayor Carter, City Council members and other state and local officials, at the groundbreaking for the Port’s newest and biggest redevelopment project on the former Hillcrest Country Club. This 112-acre site will bring up to 1000 new housing units (a mix of affordable and market-rate) and 1000 new jobs. Sherman Associates will be the master residential developer, and is partnering with JO Companies and Twin Cities Habitat for Humanity; Xcel Energy already has committed to building a new east metro operations center on site. More is ahead! Here is the Pioneer Press article on the project, and the Port’s website should you want to follow along as it moves forward.
My thoughts here: this is a project to celebrate - watch the amazing Port Authority begin its work!

RiversEdge – the legislature committed $6.2M to this project this year, arguably the most exciting development opportunity in the Midwest.  This is a once in a generation project on the bluff, overlooking the beautiful Mississippi River. I remain very optimistic and supportive. Ramsey County continues to be proactive, forward thinking, and we need both on this generational opportunity. Ronald Reagan was the first to teach me about supply economics: the “build it and they will come” approach to development. The east metro needs this mindset; and this project exemplifies it. RiversEdge will welcome new visitors through its planned park to connect the bluff to the river, bring in new residents with its housing/retail, and ultimately bring in new Class A office tenants (we simply don’t have enough inventory of either in St. Paul).  Should you want more details, last week Finance & Commerce wrote a nice piece providing an update on the project.
My thoughts here: hold onto the vision; this is an exceptional example of envisioning what should be here, and making it so.

United Village/Snelling Midway site – it was back in 2016 that we first got a glimpse of the significant development plans for the “super block” that surrounds Allianz Field. Together the property owner, Dr. Bill McGuire, and the City’s PED/Public Works/Parks departments, have been working ever since to overcome hurdles and move forward on a development. Yes, this is taking longer than anyone had hoped; lest we forget, for 3 years we experienced market interruption of “pandemic” proportions. It’s exciting to see the current energy and momentum underway to make this vision a reality! 
My thoughts here: breathe in the appreciation for the ongoing commitment from all partners on this project, to usher in the ultimate execution on a very exciting plan.

See you in the trenches,
B​

I’m reflecting on a conversation I recently had with a civic leader who was asking about current economic conditions. The question posed to me was about which industry sectors or market segments are showing surprising strength or weakness, relative to expectations earlier in the year. Share your feedback about current economic conditions and help the Minneapolis Fed understand the impact that the economy is having on your business and take this 7-minute survey.
 
This is a great question, and I sought responses from several leaders of organizations, large and small, across a wide swathe of sectors. I thought you’d like to know what I learned and how I responded.  

• Overall sense of the economy: across all points of discussion, input is mixed. There is an overarching sense of uncertainty due to inflation and higher interest rates, as well as shocks like Europe, Russia/Ukraine, and the China/US situation. This is making employers cautious. Some, out of an “abundance of caution,” made early adjustments in revenue expectations, spending, hiring, community engagement. Even within the same market segment, some companies are having a really strong year while others are struggling. If anything, the US economy is holding better than expected.  In terms of the labor market, this continues to be employers’ #1 challenge. and this one is no surprise. Nationally the persistently tight labor market makes it difficult for the Federal Reserve to bring down nominal wage growth in order to cool inflation. The Fed has signaled two more rate hikes this year, working to get inflation back on a path towards the 2% target.
• MN legislative outcomes: this year’s legislative session has the employer community, large and small, on its heels. Reeling, actually. New capital investments, where possible, are being made outside the state of Minnesota. I really don’t think legislators believe this…
• Retail: at the consumer level, engagement and demand are really strong. Summer has been very good for this sector, with strong waves of traffic. There is a sense that people truly are looking to get back to normal. On the grocery side, however, food inflation is passed on to the consumer and volume purchasing is down. This one people feel in the family pocketbooks. What I find especially interesting is the growth of “re-commerce”… people are getting very creative in shopping for a “deal.” Many of us are members of Facebook or online auction groups that are very active bartering, exchanging, selling, or donating items with one another. The US Chamber of Commerce wrote about this just last week, that the resale market is expected to grow “16 times faster than non-resale over the next four years.”  
• Commercial real estate: also mixed. Demand is strong for office/warehouse space, to serve the logistics and distribution sectors which continue to be very strong. Office space, as we all know, is still iffy as employers work to find this “new normal” in terms of office use/capacity.
• Housing development: this one is driven by policy moves. Strong legislative funding for nonprofit housing developers is expected to drive much-needed affordable housing development. In the private sector, investments largely depend on the sub-market: where rent control is present, private housing development is not. Developers familiar with Minnesota are finding fertile ground in the first ring suburbs; national developers are simply avoiding Minnesota altogether.
• Residential real estate: This one also depends on the sub-market. Residential real estate agents have been surprised how some homes still move fast while others in a different sub-market can sit on the MLS for 6+ weeks. Overall activity slowed dramatically in June, but expectations are that it will pick up again towards Fall as people adjust to a higher interest rate environment that won’t be getting better anytime soon.
• Security market: in the consumer space, manufacturers are seeing demand weakness and consumers pulling back spending on discretionary items despite the uptick in concern over safety. In the commercial security space, however, demand is strong as businesses (mainly retail and warehousing, not so much large commercial) become increasingly more concerned about safety and security.

See you in the trenches,

B