Economic Development Organizations (EDOs) across the country are facing a different landscape than they were even a few short years ago. In many ways, the work has never been more important. But it’s also never been more complicated.
Traditionally, economic development has been about business attraction. Recruit a company, cobble together attractive incentives, secure a win for the community. That still matters. But today’s challenges, including talent shortages (what’s new!), advances in disruptive technology, and demographic shifts require a broader and more strategic approach. One that isn’t just about job creation, but about building systems that help people, businesses, and regions thrive well into the future. And, one that positions EDOs as the preeminent strategic partners in their respective regions.
It’s a task that’s much harder than it sounds, considering the multiple EDO models, changes in the funding landscape, and shifting priorities for investors that can make up the bulk of EDO revenue.
The good news? EDOs are uniquely positioned to meet this moment. With the right tools, partnerships, and vision, they can do more than land the next big project. They can become the central force behind a region’s economic future.
The evolving identity of an EDO
Not every EDO looks the same. Some are city departments. Others are regional nonprofits. Some are closely tied to chambers of commerce or higher education institutions. Many are public-private partnerships that bring together government, business, and philanthropy to pool their resources and influence.
In Los Angeles County, the LAEDC operates as a nonprofit backed by both public and private investors. It leads economic strategy for one of the largest counties in the country. In Ventura County, the Economic Development Collaborative brings together small businesses, city governments, and utilities to support entrepreneurship and workforce development.
No matter the structure, one thing is clear: EDOs are no longer merely site selectors or marketing agencies. They’re becoming ecosystem builders, problem solvers, and long-term strategists. While this posture isn’t new for many EDOs, some still lack the data, structure, and operating models to capitalize on the opportunity ahead.
Workforce first: The shift from recruitment to readiness
Ask any EDO leader what their clients are most concerned about right now, and the answer is almost always talent and workforce development. In the past, communities competed on cost of doing business, tax rates, or infrastructure. Now, they compete on the availability of the workforce. Employers want to know if a region has the people they need, with the right skills, ready to go. (Let’s be honest, this is becoming more of a moving target every day).
This shift forces EDOs to think differently. EDOs in Burlington, Iowa and Chemung County, New York were confronted with a tough reality: Employers weren’t interested in more job announcements. They wanted help filling the ones they already had. And they wanted to see real investment in local training pipelines.
These EDOs pivoted. They brought K–12 systems, community colleges, and employers together to align curriculum with local industry needs. They launched career fairs, industry roundtables, and new sector partnerships. They made workforce development a central part of their mission, not an adjacent task.
That pivot is now happening all over the country. The acknowledgement is simple: If your region can’t compete for talent, it won’t compete for business.
Reshoring is real, but preparedness wins
The reshoring trend is a big deal, and the latest projections point to more growth in manufacturing, especially in high-growth urban regions. After decades of offshoring, advanced manufacturing is making a comeback. In 2022 alone, more than 360,000 jobs were announced due to reshoring and foreign investment. Sectors like semiconductors, biosciences, and electric vehicles drive that wave.
But those projects won’t go everywhere; only regions prepared with shovel-ready sites, strong infrastructure, and workforce pipelines will benefit. EDOs that invest early in readiness (things like utility access, permitting processes, and skills alignment) are the ones closing these deals.
Illinois made this work with the Gotion EV battery plant. They didn’t just offer tax incentives; they used data to prove that the region had the workforce needed to support 2,600 new jobs. That level of preparation made the difference. The lesson here is clear: Economic development isn’t just about being available. It’s about being aligned, and data makes that possible.
Incentives are evolving
Gone are the days of incentives without accountability. Across the country, states and cities are rethinking their approach. Broad-based incentive programs like Florida’s enterprise zones have been phased out. States like Washington have introduced stronger evaluation tools to track whether incentives actually create value.
Today, communities tie incentives to performance: Job creation. Wage thresholds. Investment in distressed neighborhoods. EDOs are expected to show ROI, not just activity.
This creates an opportunity for EDOs to advocate for smarter incentives—ones that support not just job quantity, but job quality, and reward long-term investment in communities, not simply providing short-term wins.
Big cities vs. small towns: Different challenges, same urgency
In fast-growing metros like Austin or Nashville, the question isn’t how to generate growth, it’s how to manage it. Housing prices, workforce shortages, and congestion actively threaten long-term sustainability. EDOs in these places strive to balance the boom, focusing investment toward transit, affordable housing, and equitable workforce access.
In smaller regions, the picture is different. These communities often contend with population loss, automation of key industries, and aging infrastructure. But they have unique assets, too: lower costs, strong civic networks, and a sense of place that many residents value.
In both settings, EDOs are stepping up to help their regions find a path forward. Whether that’s launching entrepreneurship centers, recruiting remote workers, or creating regional coalitions, they’re helping communities own their economic identity.
Data, convening, and strategy: The EDO’s real superpowers
If there’s one thing that can elevate an EDO from good to great, it’s how well they use data to drive their decisions. In doing so, they can effectively bring people together to act on that information, facilitating strategic partnerships and investment based on mutual interest and benefit.
More and more EDOs are investing in their own real-time labor market dashboards, GIS-based site maps, and economic forecasting tools. These platforms allow EDOs to demonstrate the strength of their workforce, track emerging trends, and help businesses make smarter decisions.
For example, a labor shed analysis can show a manufacturer exactly how many skilled workers live within 30 minutes of a proposed site. A dashboard can highlight wage trends, education levels, or industry gaps, giving EDOs and their partners a clearer picture of where to invest. While usage of this data is not a new concept for EDOs, the old model of collecting, analyzing, and aggregating has become cumbersome and costly. And, much of this data resides in disparate data silos, making analysis and visualization difficult for the average EDO.
Convening is where EDOs shine. EDOs are in a unique position to bridge the gap between the public and private sectors. They can bring school superintendents, plant managers, workforce boards, and civic leaders into the same room. They can lead tough conversations about skills gaps, career readiness, and community investment. And they can turn those conversations into action. Apprenticeships. Training programs. Public-private infrastructure projects. EDOs aren’t just at the table—they’re setting it.
Strategy is the mortar holding everything together. Ultimately, none of this matters without a clear strategy. The strongest EDOs are the ones that define a long-term vision for their region and build the partnerships, funding models, and governance structures to make it happen. They’re not just chasing grants or reacting to leads. They’re building regional coalitions, aligning funding streams, and creating shared metrics to track progress. In short, they’re leading.
The moment is here
This is a defining moment for economic development. Issues on the table like workforce readiness, incentives policy, competition, and technology disruption aren’t going away. They’re getting more complex, and more urgent.
But there also is tremendous opportunity. With the right strategy, the right data, and the right people around the table, EDOs can become the engines of long-term prosperity in their communities. They can help build not just stronger economies, but better futures. And that’s the kind of work that makes all the difference.
Sources
By Edgar Padilla
Principal – Workforce & Economic Development, Resultant
Edgar is a Workforce & Economic Development Principal with Resultant. His experience spans nearly 20 years in higher education, K–12 policy, workforce and economic development, and executive leadership. He has led workforce, education, and economic development strategies in multiple states, served on numerous Chambers of Commerce and nonprofit boards, and served as a publicly elected school board trustee in a fast-growing district in the Austin, TX metro area.
