A solution to Northern Nevada's long term economic ills

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?

Junk Mail Revenge

The market is bound to turn around. When it does, be prepared for the next onslaught of credit card junk mail. Here's a little secret that might piss off credit card companies and potentially get them to stop harassing you with upwards of 20 credit card applications per week. Some people have known this for years, and since a fair amount of people will read this I feel that it's my duty and obligation to share this secret with you, because based on the email I've received, I don't always get the sharpest tools in the shed reading my site (as opposed to the regular tools who read this site). For the slow: I'm saying that you're stupid and wouldn't come up with this idea on your own; pay attention.

There are two types of junk mail that everyone gets: coupons for stupid bullshit that you don't want, and credit card applications for credit to buy stupid bullshit that you don't need. Here's how to take care of all your junk mail in one fell swoop: use the postage-paid envelope that credit card companies send you with their applications to send them the OTHER junk mail you receive. It's just that simple. Imagine the frustration of credit card companies when they have to spend millions of dollars every year on first-class postage just to open up an envelope and find Pizza Hut coupons inside. The envelopes are intended to be used for "BUSINESS REPLY MAIL," and so use them for their intended purpose. You're sending them valuable money-saving coupons which could mean big savings to credit card companies, and it makes good business sense to use them. Consider it a reply to their business proposition with a business proposition of your own: 35 cents off a large, one-topping pizza. In fact, they should be thanking you for giving them these money-saving opportunities. Or how about sending them credit card applications from other credit card companies? Be creative.

How Curling Started

Just imagine, you're hanging out with your drinking buddies at home, you're snowed in and can't find your ice fishing gear. Grab the rest of the beer, the tea pot and the broom from the closet. You're so blind from drinking a puck would be too small to see. That's where the kettle comes in. You take a few whacks at it, keep missing (plus, you need the broom to hold you up. Instead, you set up your empties down the way and use the kettle as a bowling ball. The snow keeps getting in the way, so you have another one of your pickled buddies sweep the lane so the kettle can make it down the end (which you can't see anyway. Now what...all the bottles are broken. Go back to the house, grab a fifth of whatever is in the cupboard. No more bottles, no worries. Make a circle and try to get as close as you can. Now, let's invite our friends from the next pond and make it a team event.

That's how curling started. Gotta go, the log rolling finals are starting!

Show me the Talent

In a discussion over dinner the other night with friends at our home, the subject of where our business came from surfaced. Not to our surprise, each of us, save some small contracts here in Northern Nevada, did all of our business outside the state.

Our businesses are business law (acquisition & transition), management consulting, human capital development and marketing/channel development. An "Aha' moment to say the least. This lead to the same conversation I have been having for years here. Without the talent we cannot attract the companies. Without the companies talent will not stay here (unless, like our group,we can work where ever we choose).

UNR grads cannot afford to stay here, as there are no jobs, not to mention career paths (remember those!). We have an overabundance of educated people, but no place to put them. Trying to communicate with those in charge of attracting businesses continues to be an 'head against the wall' exercise. Small business continues to be the backbone, but that segment gets little support (but lots of sound bites).

I love living here in Northern Nevada. It truly is a great place with an incredible quality of life. We just need true leadership to find this talent a home.

LaHood Wink

Toyota is having some safety issues with some of their cars. They are in the middle of a massive recall to take care of the problem. Recalls are an infrequent occurrence. As complex as cars, I’m amazed there aren’t more (I’ve had 1 in the past decade over 4 vehicles (still own them all). Alas, problems do occur, and are handled by the private company.

Why this recall is different leaves me flabbergasted and enraged over another example of the government overstepping its purview. The government has launched an inquiry and called Toyota executives to DC. When was the last time a private company handling a product defect was called to the federal carpet like this? Our transportation secretary Ray LaHood told people to stop driving their Toyotas (later retracted…who vets these people?). Anyone smell protectionism?

The Government owns 60% of GM. They (our tax dollars) bailed out both GM and Chrysler, then horse traded a portion of that to the unions (big supporters of the current administration).

The continued expansion of government is an insult to its citizenry and founding fathers. Free enterprise is running for its life. It goes, so does our way of life!

Unemployment is tearing at our social fabric

As the national unemployment rate heads towards 13% with Nevada edging towards 15% (the published numbers are woefully understated and misrepresent the true ‘employment’ picture), job seekers face a monumental task in search of the few jobs that are out there. To make matters worse, unemployment is not for everyone. In speaking with a representative from Nevada Department of Employment, Training & Rehabilitation, many people, who are earnestly looking for work, have been collecting for nearly 2 years with no prospects in sight. These people are nearing the end of their benefits and potentially their rope.

On top of those ‘lucky’ enough to collect benefits, are the uncounted 100 of thousands of individuals that were self-employed and are not eligible for benefits. To add insult to injury, this growing number (based on the increase in failed businesses) goes uncounted in the unemployment figures. Top that off with small business owners that are better classified as the true working poor, operating at or less than break even. Getting the picture?

The logjam in DC has to be busted. Today’s leadership promises of money for jobs and to stimulate small businesses has amounted to more rhetoric. There are companies that are actually receiving money and still outsourcing jobs overseas. This is insanity and would drive anyone to question right and wrong. We keep hearing about being accountable. After reading Too Big To Fail and seeing the lid recently taken off campaign finance, I need to add to the list of oxymorons….Government Accountability.

Our elected officials are now desperate enough to enlist the rank and file for ideas to raise money and/or reduce costs. Here are a few ideas: 1)Get out of Iraq, 2) Get out of Afghanistan, 3) Reduce Homeland Security (Nepolitano did such a stellar job with the Arizona border) and, last but not least, 4) QUIT REWARDING NEGLIGENT BEHAVIOR!.

HR – The Black Hole of the Job Market

Giant shrimp, military intelligence, Senate Ethics Committee, Human Resources. Yes, all oxymorons (not to be confused with Rush Limbaugh, a moron on Oxy!).

10’s of thousands of resumes flood the internet everyday. Software used by HR departments ‘filter’ the resumes that are sent in via on-line job postings, sometimes scrubbing valid candidates from ever being interviewed due to a missing key word or obscure search string. An HR ‘professional’ even admitted that upon receiving literally 1000s of resumes for a single position, grabs the top handful and cans the rest (it should surprise no one what can be learned at an industry conference happy hour!). To make matters even worse, few companies even acknowledge the effort of applying to them. How many people out there have ever applied for one or more positions and never hear whether the company even received your resume? I’m going out on a limb and say MOST! The larger companies are horrendous at communicating with those interested in joining them.

My vote is for bringing the ‘human’ back to human resources. We’re all in this together and chances are the shoe may switch foots for you or a family member one day.