By Robert Pittman
As mentioned in the February “On the Porch” column, the two priority topics selected by participants for in-depth discussion at the recent Janus Forum at Watercolor in Santa Rosa Beach, Florida were economic development “under attack” and regional public private partnerships. We had absolutely great discussions, findings and recommendations, and they will all appear in the next issue of the Janus Journal coming out shortly.
As an addendum to the discussion regarding the first topic, I would like to offer the following observation: the fiction that manufacturing is “dead” in the US and is not coming back is disappointingly widespread. Add to that a second misconception on the part of some community stakeholders that economic development consists mainly of “smokestack chasing” and you have a pretty good environment for encouraging doubt and discontent.
I know some communities that are intent on pursuing tourism and retail development solely because of these misconceptions. While these industries are important components of a local economy, they will not generate prosperity and high-wages by themselves. Goods- and service- producing industries generally offer much higher paying and higher skilled employment opportunities.
How to combat this issue identified and discussed at the Janus Forum? While I certainly do not want to jump the gun and divulge the results of the upcoming Janus Journal, I will offer my opinion that stakeholder education, internal marketing, or whatever you want to call getting the word out in your community has never been more important. Here are some observations to consider:
- While manufacturing employment in the US declined by 23% (3.4 MM jobs) from 2003 to 2010 (due in large part, many would argue, to increases in productivity and general economic trends), it has increased over the past three years by 4.6% or just over 500,000 jobs.
- Re-shoring, or the return of manufacturing operations to the US that were previously sent overseas, is a demonstrable trend. While the initial numbers are fairly small, a recent survey found that 39% of companies interviewed were planning to bring some manufacturing back to the US. There are many reasons for this, and perhaps we can discuss them in future On the Porch columns. I also have some specific examples of companies that have “re-shored” that illustrate the key reasons for this growing trend.
- While some manufacturing industries will continue to decline in this country, there are many that will grow and hire. Furthermore, even if national growth in Industry X is negative, there are often areas of the country where it is growing and hiring. Look for the pockets of opportunity.
A glance at Conway Data’s New Plant Database will also provide some good examples of strong manufacturing companies and expansions in this country. If you want to communicate these facts to your board, constituents, or anyone interested in economic development, feel free to pass along this or any issue of the Janus Reporter.
As I write this a few days before April, we have near gale-force winds, snow flurries and freezing temperatures on the porch in Lakemont just a few days after we enjoyed 70 degree short-sleeve weather. Hopefully, this will be the last hurrah for winter. Our weather for the 6th annual Janus Forum in Rabun County June 8-11 should be comfortable and conducive to another valuable exchange of ideas. We look forward to the learning and fellowship, and warmer weather!
Source: US Bureau of Labor Statistics
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