EMBARGOED:  Tuesday,  January  19  at  3  p.m.       Frequently  Asked  Questions     What  is  FocusMaine?   • A  private-­‐sector-­‐led  group  of  Maine  leaders  focused  on  accelerating  business  development   in  Maine  through  the  identification  and  growth  of  just  a  few  select,  key  industries  that  have   a  high  potential  to  create  jobs  and  wealth  in  the  state.     What  is  the  goal  of  FocusMaine?   • {W5308385.1} Strengthen  and  revitalize  opportunity  and  prosperity  in  Maine  by  accelerating  the  creation   of  traded  jobs  within  a  few  select  sectors  (details  on  page  2).   o Traded  jobs  are  those  that  produce  goods  or  services  that  are  sold  primarily  outside  of   the  state,  a  process  which  then  increases  wealth  in  the  state.   o FocusMaine  is  centered  on  traded  jobs  because  they  have  higher  rates  of  full-­‐time  work,   they  pay  50  percent  higher  wages  than  local  jobs  and  each  new  job  in  a  traded  industry   creates,  on  average,  an  additional  1.6  new  jobs  in  the  local  economy.   o Maine  has  a  lower  share  of  traded  jobs  than  the  rest  of  the  U.S.,  and  that  share   continues  to  decline.   • Center  efforts  around  three  traded  sectors  with  a  high  potential  to  become  “signature   industries”  —  industries  that  serve  a  growing  global  market,  provide  a  significant  number  of   meaningful  jobs  for  a  sustainable  period  of  time  and  reflect  the  values  of  our  unique  state  in   a  changing  world  in  which  Maine  can  compete  successfully  by  relying  on  its  inherent   strengths.       • Create  a  fertile  environment  for  Maine  citizens  to:       o Grow  their  career;   o Create  family  economic  security;   o Sustain  a  compelling  location  to  grow  jobs  organically  in  the  signature  industries  and   supporting  industries;  and     1   o Serve  as  a  beacon  for  entrepreneurs  and  current  Maine  companies  in  the  selected   industries  or  supporting  industries  to  compete  more  successfully  in  the  signature   industries.     How  is  FocusMaine’s  approach  different  from  other  economic  growth  strategies  in  Maine’s  past?   • FocusMaine  is  acutely  targeted  on  three  traded  sectors.   • FocusMaine  is  privately  led  and  resourced  by  a  diverse  group  of  some  of  the  state’s   strongest  and  most  successful  business  leaders,  many  of  whom  have  created  significant  jobs   in  Maine.     • FocusMaine  is  informed  by  participating  advisers  and  economists  from  research,  academia,   business  associations  and  government.   • Maine’s  best  economic  thinkers  and  a  leading  global  strategic  management  consulting  firm   conducted  an  in-­‐depth  analysis  that  identified  the  intersection  between  the  strengths  that   exist  in  Maine  and  major  global  trends.   o • This  analysis  resulted  in  the  identification  of  high-­‐potential  sectors  that  Maine  could   build  to  serve  global  growth  markets,  thus  creating  sustainable  job  growth.   FocusMaine  is  committed  to:   o Selecting  sectors  without  bias  toward  political,  geographical  or  current  business  cluster   influences,  to  optimize  total  state  job  growth  potential;     o Developing  and  executing  comprehensive  10-­‐year  sector  growth  implementation  plans   and  overseeing  the  execution  of  the  plans;   o Building  on  and  collaborating  with  other  state  economic  initiatives,  thereby  leveraging   the  resources  of  the  state  most  effectively;  and   o Raising  the  required  operational  funding  to  drive  the  implementation  strategies   identified  in  the  planning  process.               What  are  the  selected  industries,  and  what  opportunities  do  they  provide?     • Renowned  producer  of  high-­‐quality,  traceable  food:  Consumers  are  willing  to  pay  more  for   foods  traced  to  regions  with  a  strong  branding  of  quality  (e.g.,  Maine  lobsters  sell  at  a  15  to   20  percent  premium  over  other  lobsters).  Creating  a  brand,  as  well  as  developing  markets   and  distribution  chains  for  Maine  food,  will  help  to  realize  this  potential.  Increasing  Maine’s   traceable,  high-­‐quality  food  production  will  require  two  different  areas  of  focus:  food  from   the  earth  and  food  from  the  sea.       o {W5308385.1}   Agriculture:  Unlike  many  regions  of  our  country  —  and,  indeed,  the  world  —  Maine   has  abundant  water,  vast  and  relatively  low-­‐cost  land,  and  a  wave  of  growth  in   agricultural  production.  Maine  is  also  experiencing  an  increase  in  value-­‐added  food   processing,  a  key  to  maximizing  the  economic  growth  of  food  production.       2   o Aquaculture:  Fish  protein  consumption  is  projected  to  rise  significantly  in  the  years   ahead,  and  because  wild-­‐caught  harvests  are  already  at  maximum  capacity,   aquaculture  will  be  the  means  to  meet  the  growing  demand.  Maine  has  a  strong   heritage  of  fishing,  including  high-­‐quality  fish  production  and  a  concentration  of   labor  in  fish-­‐related  industries.  Additionally,  Maine’s  robust  coastlines  and  nutrient-­‐ rich,  clean  and  cold  waters  are  conducive  to  diverse  species.  Maine  also  has  leading   product  providers  in  the  aquaculture  supply  chain  (e.g.,  vaccines,  nets),  as  well  as   nascent  activity  in  mollusks  and  algae  with  a  great  potential  for  growth.     • Build  a  world-­‐class  biopharmaceutical  development  and  manufacturing  environment:  The   Boston  region  is  a  leader  for  biopharma  research,  with  potentially  200  companies  making  up   the  cluster,  and  Maine  has  proximity  to  both  Kendall  Square  and  the  I-­‐128  corridor.  These   companies  are  expressing  a  preference  for  having  the  development  and  manufacturing  sites   relatively  close  to  the  research,  but  most  likely  outside  of  Greater  Boston.  Maine  could   leverage  its  life  sciences  experience  and  other  capabilities  to  position  itself  to  become  a   logical  location  for  the  development  and  manufacture  of  biopharmaceuticals.  Additionally,   there  are  strong  Maine  sources  of  related  R&D  and  production  of  inputs  to  R&D,  and  a   regulatory  environment  at  the  intersection  of  animal  health  and  biopharmaceuticals.       • Knowledge  workers  enabler:  The  crosscutting  enabler  that  touches  each  signature  industry   and  many  other  sectors  in  Maine  is  that  of  the  knowledge  worker.  In  addition  to  identifying   the  select  signature  industries  mentioned,  FocusMaine’s  research  also  identified  the   compelling  need  to  develop  a  set  of  strategies  to  foster,  grow  and  attract  knowledge   professionals  and  entrepreneurs,  which  could  have  wide-­‐ranging  and  long-­‐lasting  benefits   for  the  state.         How  did  FocusMaine  decide  on  the  selected  industries?   • FocusMaine  completed  a  thorough  Strengths,  Weaknesses,  Opportunities  and  Threats   (SWOT)  Analysis  of  Maine,  which  resulted  in  a  fact  base  built  upon:   o A  robust  understanding  of  Maine’s  competitive  advantages/disadvantages,  drawn  from   previous  research  reports  and  literature  reviews,  interviews  with  Maine  subject  matter   experts,  a  custom  competitiveness  analysis  and  insights  from  statewide  stakeholder   workshops;  and   o Global  perspectives,  with  insights  from  leading  think  tank  research,  cutting-­‐edge  trend   models  and  industry  expert  interviews.     • Nine  relevant  global  and  national  trends  were  assessed  to  identify  the  intersection  of  global   growth  markets  and  Maine’s  competitive  advantages.         • The  potential  focal  signature  industries  were  evaluated  based  on  impact,  using  the  following   two  prioritization  criteria:   Potential  impact:   o {W5308385.1}   High  traded-­‐job  creation   3   o Value  creation  (e.g.,  net  exports)   o Indirect  job  creation  (e.g.,  direct  effect  multiplier  of  suppliers)     Feasibility:   o Resources  required     o Difficulty  of  policy  changes  required   o Competitive  risk  —  Maine’s  competitiveness  with  other  states     Which  entities  are  funding  FocusMaine?   • {W5308385.1} During  its  research  phase  and  moving  into  its  planning  phase,  prominent  Maine  foundations  and   leading  Maine  companies  have  funded  FocusMaine,  including:     o Baker  Newman  Noyes   o Bangor  Savings  Bank   o Bank  of  America   o Camden  National  Bank   o Dead  River  Company   o Gorham  Savings  Bank   o Harold  Alfond  Foundation   o IDEXX  Laboratories   o John  T.  Gorman  Foundation   o KeyBank   o Maine  Community  Foundation   o MaineHealth   o Northeast  Bank   o People’s  United  Bank   o SMRT  Architects  and  Engineers   o The  Betterment  Fund   o The  Jackson  Laboratories     o Unum   o WEX  Inc.   4   o • Wright-­‐Ryan  Construction   On  January  15,  2016,  the  Maine  Technology  Institute  (MTI)  bestowed  Cluster  Initiative   Program  (CIP)  awards  for  the  planning  phase  of  FocusMaine,  to  support  Maine’s  food  and   aquaculture  clusters.         “These  two  projects  leverage  significant  private  sector  investment  and  leadership  and   will  advance  and  stimulate  economic  activity  in  two  high-­‐potential  clusters  in  the  state   of  Maine,”  said  Brian  Whitney,  MTI’s  president.  “These  projects  will  enhance   collaboration  and  innovation  between  public  and  private  sector  entities  and  will  lead  to   the  development  of  new  businesses,  products,  processes,  skilled  workforce  and  jobs.”   • Additionally,  FocusMaine  is  heavily  resourced  by  donations  of  time  and  talents:   o The  Leadership  Team,  Advisory  Team  and  Implementation  Team  participants  all  donate   countless  hours  to  offer  their  passion  and  talents  to  this  process.       o Anchor  Consulting  Maine  provides  project  management  services  and  donates  time   above  and  beyond  the  contract  requirements  as  a  contribution  to  the  effort.   o Global  research  firm  McKinsey  &  Company  provided  a  discounted  fee  for  its  services.   o Two  of  the  leading  McKinsey  team  members  are  natives  of  Maine,  and  one  has   since  returned  to  the  state.  He  starts  his  job  in  Maine  on  January  19,  2016!     o One  of  the  McKinsey  team  members  is  chair  of  the  Boston  Chamber  of   Commerce  and  is  excited  to  see  Maine  begin  to  connect  the  dots  to  the  R&D   opportunities  in  Boston.   o Industrium,  located  on  Fore  Street  in  Portland,  volunteers  its  services  for  FocusMaine’s   branding  and  communications  needs.   o Pierce  Atwood,  LLP,  hosts  the  majority  of  FocusMaine’s  meetings  at  its  Portland   waterfront  office.       What  is  FocusMaine’s  process  for  success?   • {W5308385.1}   In  essence,  FocusMaine’s  role  is  to  champion  growth  in  the  food  (agriculture  and   aquaculture)  and  biopharmaceuticals  sectors  in  Maine,  by  increasing  the  targeting  to   improve  sector  viability  and  sustainability.  To  achieve  this  goal,  FocusMaine  will:   o Set  and  measure  progress  toward  bold  job  growth  of  20,000  to  30,000  direct  and   indirect  jobs  generated  by  the  identified  sectors  over  10  years.   o Coordinate  and  accelerate  workforce  development  and  entrepreneurial  efforts  in   these  sectors.   o Build  and  fund  the  execution  of  comprehensive,  10-­‐year  sector  growth   implementation  plans.   o Provide  professional  staff  to  assist  and  drive  the  plans  with  sector  coordination.   5   o Support  public  and  private  sector  leaders  who  are  committed  to  overseeing  the   execution  of  a  comprehensive  10-­‐year  plan.   o Partner  with  stakeholders  within  these  sectors,  as  well  as  with  other  state   organizations  with  similar  goals,  to  optimize  accelerated  growth  for  the  sectors.   What’s  next?   FocusMaine  is  moving  into  a  planning  phase  for  the  next  six  months:  Implementation  Teams  will   develop  10-­‐year  implementation  plans,  complete  with  goals,  strategies  and  tactics  to  accelerate  growth   and  realize  sector  potential.  This  process  will  vary  by  area  of  focus:       o Agriculture:  The  Agriculture  Implementation  Team  will  be  expanded  to  include  growth-­‐ oriented  stakeholders  and  thought  leaders  in  agriculture,  such  as  growers,  food   processors,  distributors  and  others  who  are  interested  in  collaborating  to  develop  the   10-­‐year  plan.  The  Maine  Technology  Institute  recently  awarded  a  cluster  planning  grant,   which  will  be  matched  with  private  and  nonprofit  funding,  to  support  this  collaborative   effort.     o Aquaculture:  The  Maine  Aquaculture  Association  and  Gulf  of  Maine  Research  Institute   have  committed  to  partnering  with  FocusMaine  to  develop  joint  growth  goals,  strategies   and  coordinated  implementation  steps  to  accelerate  aquaculture  production  in  Maine.   A  recently  secured  Maine  Technology  Institute  Cluster  Initiative  Program  Planning   Grant,  matched  by  private  and  nonprofit  funding,  will  help  support  this  planning  phase.         o Biopharmaceuticals:  The  Biopharma  Implementation  Team  is  working  to  develop   materials  and  then  to  open  exploratory  dialogues  with  Boston-­‐based  biopharma   companies.  These  dialogues  will  inform  the  plans  for  next  steps  in  this  sector.         o Knowledge  worker  enabler:  The  planning  for  this  initiative  has  started  by  canvassing   the  array  of  current,  similar  efforts  underway  in  Maine  and  convening  some  of  Maine’s   most  significant  private-­‐sector  employers  to  better  define  this  challenge  and  then  to   design  next  steps.     FocusMaine  has  a  long-­‐term  vision  informed  by  an  in-­‐depth  research  phase.  The  planning  phase  is   expected  to  take  about  six  months.  The  implementation  phase,  which  will  necessarily  be  reviewed  and   adapted  as  the  years  progress,  is  intentionally  set  to  allow  for  a  stable,  sustained  effort  over  a  10-­‐year   period  that  will  produce  the  desired  results.     {W5308385.1}   6   BUSINESS LEADERSHIP TEAM ACADEMIC ADVISORY MICHAEL DUBYAK --- Co---Chair DR. JAMES PAGE ANDREA CIANCHETTE MAKER --- Co---Chair ASSOCIATIONS ADVISORY DANA CONNORS ELEANOR BAKER WILLIAM CARON DR. JOHN FITZSIMMONS KAREN MILLS GOVERNMENT ADVISORY RESEARCH ADVISORY ROBERT MOORE WILLIAM RYAN, SR. DAVID SHAW CHARLES LAWTON, PH.D. PROJECT MANAGER SARAH HACH SIGNATURE INDUSTRIES KNOWLEDGE WORKERS IMPLEMENTATION TEAM ENABLER TEAM MELISSA SMITH BIOPHARMA AQUACULTURE AGRICULTURE STERLING KOZLOWSKI ADVISORY TEAMS ACADEMIC ADVISORY DR. JAMES PAGE BUSINESS ASSOCIATIONS ADVISORY DANA CONNORS DR. JAMES DLUGOS ROBERT CLARK DR. DAVID GREENE PETER DELGRECO SAINT JOSEPH'S COLLEGE OF MAINE COLBY COLLEGE LAURIE LACHANCE THOMAS COLLEGE DR. DANIELLE RIPICH NORTHERN MAINE DEVELOPMENT COMMISSION MAINE AND COMPANY CHRIS HALL PORTLAND REGIONAL CHAMBER OF COMMERCE UNIVERSITY OF NEW ENGLAND GOVERNMENT ADVISORY RESEARCH ADVISORY CHARLES LAWTON, PH.D. THE HONORABLE JOHN E. BALDACCI STEPHEN ADAMS THE HONORABLE JOHN R. MCKERNAN, JR. TIMOTHY AGNEW THE HONORABLE PETER MILLS BETSY BIEMANN THE HONORABLE RICHARD (DICK) WOODBURY CHARLES COLGAN, PH.D. 73RD GOVERNOR OF MAINE 71ST GOVERNOR OF MAINE FORMER MAINE STATE SENATOR Former MAINE STATE SENATOR AMERICAN INSTITUTE FOR ECONOMIC RESEARCH MASTHEAD VENTURE PARTNERS HARVARD UNIVERSITY (recent) UNIVERSITY OF SOUTHERN MAINE JOHN DORRER JOBS FOR THE FUTURE Objec'ves FocusMaine is striving to develop signature industries in Maine to strengthen and revitalize opportunity and prosperity in the state 1 Create quality jobs (i.e., good wages and skill development) 2 Focus on a few traded sectors Case for change Share of jobs in traded industries Percentage of overall jobs 45 ? Maine has a lower share 40 ? These jobs have higher of traded jobs than the US and that share is declining faster wages, education levels, and full-time employment 35 US 32% Maine 27% 30 25 1990 2000 2010 2020 SOURCE: BLS; team analysis; ECONorthwest ? Maine would need to add 35,000 traded jobs to match the national average Research Phase Focus Bring global perspec`ve to Maine leaders Global and na`onal growth vectors Build robust understanding of Maine compe``ve advantages/ disadvantages 8---12 promising signature industries for further analysis Maine strengths/ weaknesses across key lenses Agriculture Become a renowned producer of high quality, traceable food PotenVal Impact in Maine New jobs by 2025: Traded jobs: 2,500---4,200 Indirect jobs: 6,000---10,080 Total jobs: 8,500---14,280 AddiVonal net exports by 2025: $100---200M Aquaculture Become a renowned producer of high quality, traceable food PotenVal Impact in Maine New jobs by 2025: Traded jobs: 2,000---6,000 Indirect jobs: 3,800---11,400 Total jobs: 5,800---17,400 AddiVonal net exports by 2025: $230---$800M BiopharmaceuVcals Build a world---class biopharmaceuVcal development and manufacturing environment PotenVal Impact in Maine New jobs by 2025: Traded jobs: 600---1,700 Indirect jobs: 3,720---10,540 Total jobs: 4,320---12,240 AddiVonal net exports by 2025: $150---$380M SIGNATURE INDUSTRY IMPLEMENTATION TEAMS Sterling Kozlowski AGRICULTURE TEAM BETSY BIEMANN PROJECT DIRECTOR, HARVARD KENNEDY SCHOOL CHRIS EMMONS PRESIDENT & CEO, GORHAM SAVINGS BANK ANDREA CIANCHETTE MAKER PARTNER, PIERCE ATWOOD LLP JOHN REBAR EXECUTIVE DIRECTOR, UNIVERSITY OF MAINE COOPERATIVE EXTENSION AQUACULTURE TEAM KNOWLEDGE WORKERS Melissa Smith KNOWLEDGE WORKERS TEAM JAY DEARBORN MARCIA LEANDER EXECUTIVE DIRECTOR, MAINE AQUACULTURE ASSOCIATION JOHN DORRER ED MCKERSIE PRESIDENT & CEO, MAINE HEALTH RICHARD FREEMAN SEBASTIAN BELLE BILL CARON JONATHAN LABAREE CHIEF COMMUNITY OFFICER, GULF OF MAINE RESEARCH INSTITUTE DON PERKINS PRESIDENT/CEO, GULF OF MAINE RESEARCH INSTITUTE WEX, INC. PROGRAM DIRECTOR, JOBS FOR THE FUTURE SENIOR VICE PRESIDENT, CHIEF TRANSPORTATION OFFICER, EMHS DIANE GAROFALO SENIOR VICE PRESIDENT, UNUM TOM JANNA ELEVATE CONSULTING AND COMMUNICATIONS BIOPHARMA TEAM TIM AGNEW PRINCIPAL, MASTHEAD VENTURE PARTNERS MICHAEL DUBYAK CHAIRMAN, WEX, INC. FRAN HARRISON CMO, SMRT CHARLES LAWTON CHIEF ECONOMIST, PLANNING DECISIONS LLC EDISON LIU, MD PRESIDENT & CEO, JACKSON LABORATORIES, INC. ROBERT MONTGOMERY---RICE PRESIDENT & CEO, BANGOR SAVINGS BANK DREW SIGFRIDSSON MANAGING DIRECTOR, CBRE/THE BOULOS COMPANY JANET YANCEY---WRONA BIOTECHNOLOGY CONSULTANT VICE PRESIDENT, UNUM PRESIDENT, PRO SEARCH SUE PELLETIER VICE PRESIDENT, MAINEHEALTH GIO TWIGGE CORPORATE VICE PRESIDENT, IDEXX JOHANN SABBATH DIRECTOR OF NEW BUSINESS VENTURES, WEX, INC. JUDY WEST SENIOR VICE PRESIDENT, MAINEHEALTH