The growing perception is that our economic development engines continue to sputter. There seems to be more concern with self preservation than pursuing their charter. Having personally been involved with attempts to keep companies here, our state’s reputation for being business friendly has been eroding. That has to be stopped in it’s tracks, especially here in Northern Nevada.
Here is the quandary. Nevada is a service-based economy. We have relied on the growth of the gaming industry and, until recently, the run away appreciation in the real estate market to keep the state and local coffer full. That ship has sailed (actually the former is taking on water and the latter has sunk). As with any business, you must be nimble and astute enough to change with the markets. In a fast paced global economy, change happens. You are either a catalyst or a victim. We have our work cut out as we continue to fall victim. There is a solution.
Not to be confused with the rhetorical propaganda of the administration, Nevada, both public and private sectors, need to embrace change. In order for us to attract the businesses and, as important, the employees, we, as a state, should not separate the two. Let me explain.
The biggest challenge our state and local economic development groups face in wooing higher income companies to move here is the lack of suitable talent to fill the positions. This has been the tale as told in conversations with these groups (ones that actually return inquiries). Just from conversations and social networking, I know for there is plenty of talent here that has been displaced. The ‘employment’ companies seem to be aware, but do not seem to be proactive. A tale for another time.
Equally challenging is the recently minted talent that cannot find acceptable employment here. A simple poll of seniors and post-graduate students at UNR highlights the exodus do to lack of opportunity.
A suggestion: a package deal. Why can’t we create a mechanism that not only entices the company but their employees, as well. It’s not a new idea. Companies relocate facilities and jobs all the time. We just lost a top computer manufacturer to it’s home state that offered jobs to their key players interested in moving with the company. It is certainly way more attractive today than it was just 2 years ago.
The excuse I kept hearing was our real estate impacted the overall cost of living here. No longer the case. Though the tide may be beginning to change, prices are where they should be for the our market.
Another challenge was cost of construction or lease cost on commercial property. Well, we are on the front end of that freefall. As with every previous real estate cycle, the crest and trough effect is in play here (though considerably more epic this time). When residential has been on the rise, commercial (market dependant) was on the downside and visa versa. There will be more and more commercial on the market, as that market’s turn in the default and foreclosure seat is just starting to surface. Notes are due, vacancies are up. Tough times ahead.
With all this against us, there is great opportunity. There are businesses and individuals that saw the future and kept their powder dry (didn’t drink the Kool-aid!). That brings us back to why live and do business in Northern Nevada. That is rhetorical. We all know why we live here. Intangibles aside (the business climate and tax reasons), by far it is the quality of life and the beauty of our environment.
It is time for us to bring our game up and create relocation packages that attract companies and their employees to this once again most favorable environment.
Want to cure the budget deficit? Want to absorb some commercial space? Fill some vacant homes? Stop the failure of small businesses and stem the unemployment tide? Start bringing in the businesses AND their people.
It’s time for economic development, guerilla marketing style. The gloves have to come off, it’s time to be aggressive. There is an opportunity for both the public and private sector to make this happen. Time for egos, self-preservation and protectionism to move aside. Do or do not. There is no try.
I’m ready. Are you?
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