Saturday, July 21, 2007
Prosperity doesn't come from jobs alone
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Victor Iannello
Iannello is president of the Roanoke Valley Economic Development Partnership Board of Directors.
For decades, the successful relocation of new businesses to the Roanoke region has been good news. Intense efforts to recruit companies have been led for almost 24 years by the Roanoke Valley Economic Development Partnership -- the region's economic development marketing organization that is funded by the private and public sectors.
Results have been steady, with more than 13,400 new jobs and $1.2 billion in investment attracted by the partnership over that time. That's a very credible record, but is it enough to drive prosperity in the Roanoke region well into the 21st century?
We all know the world always is changing. Who among us conducts business the same way we did in 1983?
Many livelihoods have been created by people who are agents of change for business. Now it's time to change the way the Roanoke region approaches its economic development marketing and adopt a 21st century model.
Just as in business, market growth drives success. The pace of population growth in the Roanoke region (0.5 percent annually) is not strong enough to sustain the kind of prosperity and livability we want for all.
In communities where population growth lags, so does income growth, and this region is actually losing population in the 29-44 age group -- exactly the individuals who will create new businesses and who will lead this community into the next decade.
It's all about keeping pace and holding our economic ground. We must, as a region, aim for a sustainable population growth rate of 1.2 percent, at a minimum.
It's achievable, and before someone says, "We don't want to be another Charlotte," consider that it's comparable to the population growth rate in other attractive, successful communities such as Harrisonburg, Charlottesville and Lynchburg.
How do we get there?
There's a new model for economic development in 2007. Just having jobs is not enough to get the people, as Pittsburgh learned the hard way.
Dr. Richard Florida, a well-known and respected economic development expert, was working in the city in the mid-1990s when the city targeted its recruitment efforts toward attracting Lycos, a rapidly growing, highly successful software company
They felt certain that they could get past the closings of the steel mills and the exodus of factory jobs because they had Lycos arriving, and they reasoned that other similar companies would follow.
But then a shocking announcement -- Lycos was moving everything to Boston. It wasn't for economic reasons; the cost of living was twice what it was in Pittsburgh. It was for people. Qualified people.
Even with the offer of high-paying jobs, they simply couldn't get people to move to Pittsburgh because people didn't think Pittsburgh was a suitably attractive place to live.
Research shows that young, talented professionals -- the demographic we're lacking in the Roanoke region -- are not focused just on their jobs. What they are looking for is quality of place.
The job is not enough anymore. They want a nice home, a diverse network of friends and a variety of things to do. They want outdoor activities, recreational opportunities, art, theater, music -- and they want it all in a safe and healthy environment.
Can the Roanoke region give it to them?
We already have much to offer; we just keep the secret to ourselves. The partnership is investing in a better way to do economic development.
Not only will the partnership continue to recruit companies, but it will take a more holistic approach to economic development by expanding its program of action to become the leader in strategizing, planning and implementing programs that will strengthen and market the region's assets.
That includes recruiting diverse retail, entertainment and dining options, and improving access to our fabulous outdoor amenities.
Then, we'll tell the world. We'll let the best-kept secret out, and we'll build to sustainable population and income growth.
To get there, the partnership has embarked on a $6.5 million fundraising campaign, with $3.25 million expected from the private sector. The campaign already is 80 percent of the way to its goal, and will provide the funds to invest in this vision of prosperity for the Roanoke region.
We business people and longtime Roanoke citizens offer our unwavering support to the partnership. The new plan of action is proactive, innovative and exactly what this region needs. We have tremendous faith it will succeed.
