Clarity Blog

August 9, 2010

What are the three biggest stories each week in the world of California land development?  You’ll find them right here each Monday, or follow LP&A all week long on Twitter at @LPALand for up-to-the-minute news and analysis.  This week:

1. Will the Drought Contingency Plan squeeze future land uses?

The California Department of Water Resources didn’t go so far as to blame your picket-fenced bit of the ‘burbs for causing the state’s ongoing water crisis, but it is looking at limiting future land uses as part of the solution.  According to its newly released Drought Contingency Plan, “development intensity has a direct relationship to water supply,” and since the state’s thirst for water outstrips available resources, that means builders best prepare for more regulation and limits on what they can do with their property.

>> Read the Full Report

(more…)

(Ed. Note: This post summarizes commentary written by Laer for the June 2010 issue of Builder News Magazine. You can read the full version here.)

The filing date for city council candidates across Southern California is fast approaching and campaign contribution requests will come just as fast.

As a public affairs consultant who has been involved in the approval of more than 400,000 homes, I’ve participated in many strategy sessions during election seasons, and have identified four fundamental ways our clients approach corporate campaign contributions:

• The pragmatists, who contribute to those considered most likely to get elected, so only “winning” investments are made
• The idealists, who contribute only to those who are likely to support building, even if it’s unlikely they’ll win
• The navel-gazers, who balance electability against support for the industry, and make highly nuanced contributions
• The deniers, who don’t make any campaign contributions at all, ever.

We’ve had clients take each of these approaches and subsequently get projects approved.  So which approach is best?  You can click here to read our full story on this topic featured in Builder News.

But the bottom line is campaign contributions are just a form of communications.  You are communicating through your money, and you are hoping your money will lead to access – the opportunity to communicate – after the election.  Consequently, the same rules apply to contributions as apply to all communications:

• Prepare your messages, and update them as circumstances change
• Seek to listen, not just to talk
• Act only after you’re fully prepared to respond to negative questions.

Lastly, be sure to make a contribution to the building industry PAC – even if you’re contributing separately, because the industry’s voice needs to be heard, too.

As featured by the Orange County chapter of the Building Industry Association

Jobs, jobs, jobs – It’s a winning message for developers and builders right now. We are seeing this message resonate with all of the industry’s key target audiences more than ever, from decision-makers and city staffs to the general public and media. But how can you emphasize jobs when a full economic impact analysis isn’t part of your budget?

Enter the Center for Strategic Economic Research – or CSER.

The Center’s study on the economic “ripple effect” of homebuilding is quantitative confirmation of what we’ve always known: New homes mean more jobs.

Specifically:

• Every home built creates 2.4 jobs
• For every $1 spent building a home, $0.9 is generated 
• Each home generates more than $360,000 in economic activity, excluding the selling price

These are terrific metrics. They are also being used by builders across the state as confirmation of their project’s economic benefit. In fact, the CSER’s Deputy Director, Helen Schaubmayer recently told us that the study could be an immensely valuable tool for builders.

“As a result of this study being updated and published for several years, we are seeing builders leverage jobs-creation messages that they were previously unable to quantify. But builders also need to realize how to package and present these findings to the right audience. If they do, it could go a long way.”

We agree. Even the best jobs message can get cluttered with industry jargon. And having clarity to your message – especially one as important as jobs – is critical to a successful project.

Take a moment to review the study. We’ve also been told by the research director that a 2010 study is in the works and may be available this summer, so we’ll be sure to keep you posted.

The Orange County BIA Advocate – the chapter’s bi-weekly e-newsletter – will distribute our article on honing in your economic benefits message. The crux of our point is a fantastic study from the California Center for Strategic Economic Research (CSER) that quantifies the “ripple effect” of homebuilding. It’s a great tool that allows builders to put numbers to the positive economic impact their projects will have.

Some of the key findings:

• Every home produces more than $360,000 in economic activity, excluding the sale of the home
• For every $1 spent building a home, $0.9 is generated in additional economic activity
• Each home built generates 2.4 jobs

We encourage you to read the Advocate article as well as the study. Then take a moment to visit our new new Web site.

Panel poses with Laer's (center) scientific model to project the future of the industry... a smiley face

Today we take a break from the goings on with issues that matter to you – water, over-regulation, land use policy – and address the state of our industry, public relations.

A study was recently conducted by the Orange County chapter of the Public Relations Society of America (with a helping hand from Laer Pearce & Associates) that looked at the state of the PR industry in Orange County. Like all industries, PR has been hit by The Great Recession, and the survey’s findings confirmed it:

• Decision-makers are relying more heavily on PR, which often happens during downturns as more expensive communications tools like advertising get cut
• Still, budgets and staff for PR are being cut
• Hiring is still a concern. Most are not planning on hiring new staff
• Social media has had the highest increase in use, followed by Web site and email communications
• Community relations and direct engagement is also on the rise
• Advertising and printed collateral saw the greatest decline in use
• PR Professionals are cautiously optimistic, with at least half forecasting moderate growth in 2010.

Laer is recognized as a thought-leader in the local PR community, so he was invited to speak on a panel to discuss these results and the future of PR. A few of his key points were:

“Don’t try to make the case that PR is necessary. That’s a losing proposition.  Instead, create a scope that fits the client’s specific needs and make a case for why it meets the client’s strategic objectives at a price that brings value.”

“Everything is getting faster and more complicated, so there will always be a need for good public relations professionals who can help sort through the clutter and help your message be heard and understood.”

The conclusion of the study and panel discussion was clear: PR pros need to do more with less. We actually find this very comforting, because that’s the way we’ve always done it. We pride ourselves on being good stewards of our clients’ resources, adding value through our knowledge of the industries we serve, our relationships within these sectors, and a history of completing campaigns on time and under budget. Recession or not, it’s been our model for nearly 28 years and we have no plans on changing!

Amidst a recent hectic afternoon, one of our clients called to pick our brain about what LP&A sees as the latest trends in water agency communications.  Although it admittedly caught us off guard, it’s a great question that couldn’t have been posed at a better time, given the uncertainty of California’s water future and the swirling dynamics of public sentiment.  We share our answer below, but the bottom line is that the old ways of doing business no longer work in today’s changing environment.  Here’s why:

1. Water is no longer an issue that flies under the radar. These days water providers are asking a lot from their customers: Use less, pay more, vote for this (within the advocacy laws), don’t mind that sinkhole or pipe break.  Agencies that foster trusting relationships with their customers through proactive communications will reap the most benefits.

(more…)