| Currently, economic development is a buzzword among elected officials, business leaders and nonprofit organizations alike. The Kitsap EDC was created in the 1980’s — communities, regions and nations have evolved tremendously since that time. New megatrends are redefining the means and ends of economic development. Let’s look at some of these major shifts taking place within the development arena for surely we can learn more about where we stand in Kitsap County, how well we are doing, and whether we are prepared for the future.
Megatrend #1 – Local Business Matters
Recruiting new businesses used to the chief end all of economic development. Most regions measured their success in narrow terms of new business locations. Economic development has thankfully matured to recognize that local companies are the true economic heroes in their communities. Local business retention and expansion programs are now commonplace and based on the reality that over 65-80 percent of all new jobs created in any community are spawned by homegrown businesses.
Megatrend #2 – Tourism is Economic Development
Somehow a crazy notion used to exist that tourism was somehow different or distinct from economic development. This myth has been exploded as areas recognize the powerful economic impacts that come from capturing a traveler’s time and money.
Megatrend #3 – The Internet
The information age has pushed economic development in bold new directions. Websites have become a necessity for cities that want to grow. Email has enhanced productivity, accelerated turnaround time expectations for business prospects, and eliminated vast amounts of paper and postage.
Megatrend #4 – Recruitment Pipeline Shrinks
As the global economy has become more integrated companies must increasingly weigh international development options in order to survive. Outsourcing jobs or investing offshore is a reality and as a result there are fewer companies (domestically anyway) that are growing exclusively in the United States.
Megatrend #5 – International Trade and Investment is Hot
This trend is really the flipside of the previous megatrend. As less developed countries around the world accelerate their economies, the best investment opportunities in the future may emanate from Sao Paulo, Shanghai or Bombay. Getting foreign owned companies to invest in America, exporting US products to these growing markets, and developing international trade ties are fundamental tenets of economic development.
Megatrend #6 – Education Equals Economic Development
In our knowledge driven economy, a community’s educational investments increasingly set the stage for future economic growth. Raising educational attainment in general and helping specific companies or industries address their workforce requirements have become cornerstones underpinning success in economic development.
Megatrend #7 – Partnerships
Alliances and partnerships have become much more important in economic development as regions realize that their success depends on how well they can marshal the resources of key leaders, organizations and institutions. Partnerships across new or different lines are also a key to innovation and longer-term success in economic development.
Megatrend #8 – Clusters
Economic development has long focused on target industries or key sectors. Recent research and successful new initiatives have moved us past these traditional but narrow focuses. Areas are now more focused on spurring productive cross industry relationships or getting companies to work in clusters to support each others’ needs.
Megatrend #9 – Ethnic Markets and Businesses
Changing demographics can be a powerful economic development force. As our country becomes more culturally diverse, communities are recognizing the economic development benefits of supporting ethnic entrepreneurs and growing cultural markets.
Megatrend #10 – Sustainability
Alternative energy, organic foods, and promoting conservation are no longer fringe initiatives or passing fads in our society. Significant new business investment and entrepreneurial activities are unfolding within the “green” sector. Increasingly, cities are also reaping powerful economic benefits by actively striking a balance between Nature and our built environment.
Kitsap County is currently reviewing its vision, strategy and action plan for economic development. As the work continues on defining economic development roles, understanding these trends and using them for maximum benefit by the various agencies and organizations will serve the community well.
More work is needed though. Significant improvements in several areas are needed if we want to ride these forces towards success instead of being caught economically ill prepared. Other new megatrends will also invariably push our organization and our community towards unique opportunities and challenges. Expect the Kitsap EDC to not only stay on top of these changes, but to be ahead of the curve pursuing the cutting edge initiatives that position our region for long-term success.
(Editor’s Note: This article originally appeared in the Yakima Valley Development Association (New Vision) fall newsletter and written by David McFadden, President.). | 