With little or no job growth, how should economic developers measure success? William Fulton addresses that question in the September issue of Governing Magazine.
Fulton writes that developers and communities need to look beyond simple job growth and gauge “their success in business and industrial sectors that are growing; the extent to which the business-generated wealth stays in the community; whether there is a good match between labor skills and labor demands; and the quality of the jobs themselves.”
In recent years, EMSI has worked on projects and with clients who use our data and tools to accomplish much of what Fulton brings up — specifically, target key sectors and match the skills of their workforce with local businesses. Here’s one such example from Dayton, Ohio.
Meanwhile, Fulton concludes his article by giving a few examples of ideas popping up through the US in the wake of the bleak job outlook:
- Focus on the emerging sectors of the economy that are a good match for your community or state. This doesn’t mean that everybody should go after biotech companies — or any other panacea. But it does mean that even in this down economy, some startups and small companies are getting funded, breaking into new markets and gradually adding employees. Understanding this ecosystem of entrepreneurs and financiers, however, requires hard work to acquire deep knowledge — and knowing which companies are best suited for your community and which are not.
- Focus on the “high value added” sectors of the economy that will add true wealth to the local economy. Jobs are fine. But they probably won’t last forever. If the jobs are controlled by corporate leaders in a distant location, you’re little more than just a colony of that corporate board. So look for independent companies — especially those that engage in activities that add a lot of value in the economic chain. Instead of simply chasing factory assembly jobs, for example, try to go “upstream” in the manufacturing process to the point where local companies can convert ideas into products or products into prototypes.
- Match businesses to local labor skills. Sure, you want that sexy plant or research and development park. But can the people in your town actually do the work? Or will the result simply be that out-of-towners commute in to work at the plant, while the locals are relegated to low-wage service jobs? Your economy will be better off if you find opportunities that will provide not just jobs, but jobs the locals are qualified for.
- If the business you’re luring in departs, what’s left behind? Businesses usually don’t last forever. So plan for the end from the beginning. If the big company leaves, are you left with a trained labor force? A marketable facility? A cluster of suppliers? The more of these, the better.
Thanks to Brian Kelsey for sharing a link to Fulton’s story on his Twitter feed.
