County’s sagging economy needs immediate attention
There aren’t many ways to sugar coat the message economist Bill Fruth delivered Wednesday at McMinnville Civic Center.
Due, in large part, to the upcoming closing of Carrier, Warren County’s economy is headed for at least a three-year slump. According to Fruth’s calculations, there’s nothing the county can do at this point to alter the impending downturn.
Carrier’s shutdown will impact far more than the employees who work there. Dozens of businesses that directly rely on Carrier will also absorb a significant hit.
Even local stores and restaurants which have no affiliation to Carrier are likely to see a much different business climate. With around 1,000 good-paying jobs leaving the area, there won’t be as much disposable income to buy a new shirt, or to go out to eat.
Fruth predicted the county will continue to stagger from Carrier’s departure until at least 2008 — and he says that’s a best-case scenario. More than anything, he stressed the need for Warren County to put a continual emphasis on economic development. If not, he warned this county could quickly become a low-wage economy void of many significant career opportunities.
That is a path this community does not need to travel.
One thing Wednesday’s meeting did point out is there is not an abundance of interest in this county’s economic future. Despite heavy publicity, only about 50 people attended Fruth’s presentation. Considering organizers had planned for around 200 people, the turnout can be described as nothing short of a disappointment.
With Carrier closing, a possible strike at Bridgestone, and over 100 more job losses coming this summer at A.O. Smith, it’s logical to think local residents would be extremely concerned about our job situation. Apparently not.
Since there’s not much widespread interest from the community, it’s up to government leaders to get on the same proverbial page. And Fruth mentioned some ideas the county would be wise to implement.
One incentive that’s gaining popularity is a plan where the county absorbs training costs for a company willing to locate here. If a business is going to create 100 jobs in this area, but wants its workforce to be trained on its equipment, the county could extend a $50,000 grant, for example, to cover training expenses.
The county also needs to adopt a plan where building permits and other necessary paperwork can be granted to an incoming business quickly.
We recently received a first-hand look at how fast Lowe’s constructed its building and opened its doors for business in Cumberland Plaza. And it’s reassuring the city of McMinnville was able to accommodate Lowe’s need for speed.
But McMinnville officials regularly meet every two weeks. The Warren County Commission has a regular meeting every two months and has built a solid reputation for dragging its feet. A better system must be in place.
There are factors Warren County has going in its favor, such as a full-time employee dedicated solely to economic development. And the county has successfully given tax breaks, another major incentive, to lure companies like Bridgestone.
What needs to happen at this crucial crossroad is a renewed commitment to recruiting — and keeping — jobs in Warren County. This requires, at the very least, a unified effort from the city, county and Industrial Development Board, along with adequate funding and an attractive incentive program.