latah edc nov 05
TRANSCRIPT
Economic Development for Latah County, Idaho
Jim NelsonProfessor, Agricultural Economics
University of IdahoNovember 2, 2005
Understanding how economic development happens
Households
Basic Industry
LocalStores
Labo
rG
oods & Services
Goods & Services
$
$
$
ProductsProducts
Your Community
$How an Economy
Works
(Simple Case)
Local Economic Development Can Occur in Two Ways --
• Export Enhancement
• Import Substitution
How economic development comes about
Import Substitution
Import Substitution is replacing items
purchased outside the
region with local production
Households
Basic Industry
LocalStores
Labo
r
Goods & Services
Goods & Services
$
$
$ Your Community
$ Supplies forSupplies for
Local BusinessesLocal Businesses
InputsInputs
$
Products
$
Goods andServices
$
Export EnhancementExport
Enhancement is expanding the
volume of goods and services
your region sells to the rest of the
world.
Households
Basic Industry
LocalStores
Labo
r
Goods & Services
Goods & Services
$
$
$ Your Community
Supplies forSupplies for
Local BusinessesLocal Businesses
InputsInputs
$
Products
$
Goods andServices
$
$
So, in general, that's how economic development occurs,
BUT
How do communities make it happen so as to meet their needs?
So, in general, that's how economic development occurs,
BUT
How do communities make it happen so as to meet their needs?
COMMUNITY INVOLVEMENT AND
PLANNING
A Critical Part of Community Involvement is to Build an Economic Development Plan around
Local Firms
Creation
Attraction
Retention
Expansion
Of local business activity, jobs
and income
--Planning--
Know Your Community!
Know Your Economy!
Local social, economic and demographic data.
Latah County Population
0
5000
10000
15000
20000
25000
30000
35000
40000
1970 1980 1990 2004
Latah Co
Moscow
Rural
Small Town
Latah County Small Town Population
0
100
200
300
400
500
600
700
800
900
Potlach Troy Deary Bovill Juliatta Kendrick
1970
1980
1990
2004
Latah County Per Capita Income
1980 1990 1995 2000
As % of U.S. 82% 75% 75% 71%
As % of ID 96% 93% 90% 89%
HANDOUTS
--Planning--
Know Your Community!
Know Your Economy!
Local social, economic and demographic data.
open -- www.accessidaho.orgclick – Community/County Profiles - Idaho Department
of Commercepoint to -- Statistics & Researchclick -- City/County Profiles
• What’s important?•Total employment•Total employee compensation•Direct compensation per employee•Employment growth
Know Your Community!Know Your Economy!
What do local folks want?
Know your community assets!•Citizen support for development•Local media support for development•Access to financial resources•Availability of energy resources•Infrastructure and community services•Labor force•Transportation systems•Housing, health services, schools …
Know Your Community!
Know Your Economy!
• What do local firms need to be more successful?•Labor force•Dependable sources of inputs•Marketing help•Infrastructure and community services•???
Know Your Community!
Know Your Economy!
TARGETING ECONOMIC DEVELOPMENT
Think about local firms.
Targeted Economic Development -- Export Enhancement
•Major employers (firms, non-profits, agencies and industry sectors)?
•What are the products they market? •Are their products further processed after leaving the local area?•Could some of the value-added be done locally?•Do other firms (out-of-area) market the products
of local employers?•Could local firms do some of the marketing being done by out-of-area firms?
Knock on Doors! Ask Questions!
•Major employers (firms, non-profits, agencies and industry sectors)?
•What are inputs?•Where do they get their inputs? •Could some inputs be produced locally?
Targeted Economic Development -- Import Substitution
Knock on Doors! Ask Questions!
** Lists should be for a functioning economy
(county or multicounty region??)
Generate lists** for import substitution and export enhancement opportunities.
•Build lists with
-local brainstorming and local legwork
-
• Business Plans– goals and expectations– strengths and weaknesses – targeting and attracting customers– keeping tabs on costs, pricing, profits & cash flow
• Feasibility Analyses (net returns and cash flow)– investment costs– operating costs– sales and revenues
Technical assistance –
feasibility analyses and business plans
(UI Extension and SBDC)
Remember to use C.A.R.E. Creation
Attraction
Retention
Expansion
When developing strategies for economic development --