By GLENN T. CARBERRY
Publication: The Day
I was recently looking at a business website and saw a headline that grabbed my attention. It said: "Nine U.S. Cities Nearly Destroyed by the Recession." Although I anticipated that the list would include places like Flint, Michigan and Reno, Nevada, I was shocked to see Norwich-New London listed among the nine metropolitan areas that has been most devastated by the recession.
As subsequently reported in The Day, a study conducted for the U.S. Conference of Mayors analyzed the impact of the recession on jobs in 363 metropolitan areas. It found that only 400 of the roughly 10,000 jobs lost here during the recession will be recovered by the end of 2012, and the region may not return to previous employment levels until 2018 or later.
That's unacceptable. This report should be a call to arms to rally the business community to find ways to create more jobs by helping existing businesses grow and by attracting new industry.
Upon reflection, the report's distressing outlook is not entirely surprising. Pfizer closed its global research center in New London, transferring many high paying jobs from there and the Groton facility to other locations. Meanwhile, the local gaming industry faces increased competition, while Defense Secretary Leon Panetta has called for another round of base closings and Electric Boat's plans to hire more workers may be delayed by recent proposals to stretch out orders for new submarines.
As a concerned businessperson, one with a longstanding commitment to promoting economic development in the region, I must say the response thus far by business organizations, governmental leaders, and the media to this and other recent economic news is underwhelming. There have been too many forums held to provide politicians with an opportunity to tell local businesses "not to worry" and not enough collective action by the business community.
There is some precedent for believing that the region can rally itself. After the Cold War ended, the UNC plant closed in Montville, the Naval Underwater Warfare Center relocated, and Electric Boat faced an uncertain future. At that time, regional leaders created some new organizations to coordinate economic development efforts such as SECTER, a regional chamber of commerce, and a new council of governments. More recently, a broad-based coalition successfully halted the closing of the submarine base.
Here are a few suggestions to re-energize the region's economic development efforts. First, assign job creation to a team of volunteer business people. Every retail store, manufacturer, medical practice, law office and entrepreneur in the region has a strong interest in taking action to ensure that our economic foundation remains intact. The alternative is to watch other large employers relocate, more small businesses go under, and young people leave to find better opportunities.
Organize a task force of 20 business people from all professions with knowledge of permitting, financing, marketing, and labor issues to lead this process. Some important tools to assist them are already available, such as the comprehensive economic development study ("CEDS") recently prepared by SECTER, which contains important data about economic resources, demographics, and future infrastructure priorities.
Another recommendation is to concentrate initially on identifying and interviewing the 75 largest employers and job creators in the region about their current needs and what factors would allow them to increase employment. Too often, development efforts direct attention on bringing in new companies through grant programs and marketing efforts. This focus is misguided because most new jobs result from the expansion of existing businesses. While some of the top job generators in the region are well known, there are dozens of other employers the task force should approach about expanding operations or just continuing their businesses here. Upon completion of this process, the task force would not just issue a report, but try to work with the businesses and applicable government agencies to address concerns that may be impeding job growth.
My third recommendation is to avoid dependence on governmental programs. The projections in the study demonstrate that the fiscal and monetary policies of the federal government failed to help this area. Now the state government has proposed some expensive programs of its own. Although local business should be encouraged to take advantage of government programs, real progress from such hiring can be illusionary. Jobs based on subsidies may disappear when the subsidies end and subsidized jobs do not incentivize other regional businesses to create unsubsidized positions.
While business leaders have an obligation to confront the employment challenge facing this region, other ideas are necessary to avoid the fate projected by the U.S. Conference of Mayors. Small business lending by local banks and experienced lending organizations should continue to be encouraged. Working with the business community, elected leaders need to analyze and pursue those municipal infrastructure programs that can best encourage growth, produce jobs and generate new tax revenues.
This effort must include everyone - businesses, government and non-profit organizations. The challenge we face is a serious one and so too must be our response.
Attorney Glenn Carberry writes occasionally on economic topics and has participated in many development projects in the region. He lives in Norwich.
The reader web chat with Mitchell Etess, Chief Executive Officer of the Mohegan Gaming Authority, was held on Thursday, May 24.
Do you support Gov. Malloy's plan to increase education spending without raising taxes or creating a budget deficit?
|
||||||||||||
For Mother's Day, submit a photo of your mom and six words that best describe her to a.nunes@theday.com.
Do you support Gov. Malloy's plan to increase education spending without raising taxes or creating a budget deficit?
|
||||||||||||
HIDE COMMENTS
HIDE COMMENTS