Each year, Agracel gives a 4th of July gift to our
partners, clients, bankers, and other strategic allies as a symbol of our
appreciation for their support throughout the year. This year, our gift was a book entitled "Our
Sacred Honor - An Annotated Guide to Understanding Our Founding
Principles."
This book is a collection of the most important documents in U.S.
history: The Declaration of Independence, The Constitution, The Bill of Rights,
and the Amendments to the Constitution. These documents are also called the
Charters of Freedom.
We the People of the United States. Democracy.
Life, Liberty and the Pursuit of Happiness. Freedom. These words and phrases
define us as a nation. We cannot forget that. In 1795, George Washington said,
"The Constitution is the Guide I never will abandon." And we must not
either.
We live in the greatest country in the world. It isn't perfect;
we aren't perfect. But together we are the best. So, celebrate this 4th of July!
It's our birthday!
Jack Schultz is the CEO of Boomtown
Institute and Agracel Inc., an industrial development firm majoring in rural
America, author of Boomtown USA, and speaker. Boomtown Institute serves as an
economic development mentor to communities across the United States, leading
communities to realize their full potential.
The headline read "State Shutdowns Loom as Deadlines Near".
An astounding 19 states had not approved their fiscal 2010 budgets with one week
to go until the start of their next fiscal year.
According to
CNNMoney.com, "at least 19 states are still hammering out their spending plans
as the recession wreaks havoc with their finances and sparks fights between
governors and lawmakers. If spending plans aren't approved, state workers may
not receive their paychecks and some government offices may shut
down."
"States are struggling to close shortfalls totaling $121 billion
for fiscal 2010 as the recession decimates tax revenues."
We in Illinois are no strangers to this debacle, as we have endured this
issue for far too many years. And our federal government is in no better
position than the states. Let's hope our children and grandchildren don't end up
"working for the government" their entire lives, as budget deficits continue to
soar today, placing huge burdens on future
generations.
Jack Schultz is the CEO of Boomtown
Institute and Agracel Inc., an industrial development firm majoring in rural
America, author of Boomtown USA, and speaker. Boomtown Institute serves as an
economic development mentor to communities across the United States, leading
communities to realize their full potential.
It has been quite some
time since we reported on telecommuting. With the volatility in fuel prices over
that past 12-18 months, we were curious of the effect on telecommuting. We found
a recent report from WorldatWork, entitled Telework Trendlines 2009.
According to the report, the number of Americans who worked from home
or remotely at least one day per month for their employer increased from
approximately 12.4 million in 2006 to 17.2 million in 2008. The rise represents
a two-year increase of 39-percent, and an increase of 74 percent since 2005. In
addition, the survey found that the number of employees who work on contract,
are self-employed or are business owners ("contract telecommuters") who work at
home or remotely at least one day per month rose slightly, from 16.2 million in
2006 to 16.6 million in 2008. Therefore, the sum of employee telecommuters and
contract telecommuters rose from 28.7 million in 2006 to 33.7 million Americans
in 2008, a 17-percent two-year increase.
The trend toward more
telecommuting likely is due to a combination of factors, including:
The proliferation of high-speed and wireless Internet access (which has made
it both less expensive and more productive to work remotely)
Rising fuel and commuting costs, and
The trend by employers to embrace work-life balance concepts.
Another finding from the study was that many workers not currently
telecommuting think some of their job tasks might be suitable for remote work,
but they are usually unwilling to give up pay to telecommute.
Finally,
the report provided a snapshot of information about the demographic profile of
those who telecommute today. Most telecommuters in 2008 were male, under age 55
(most around 40 years old), college graduates, and living in a household earning
$75,000 or more per year.
The proliferation of high-speed connectivity
and the explosion of hand-held devices occurred during the early 2000s and have
become a mainstream way of working for many employers and employees. The
WorldatWork report concludes by stating, "History may record someday that the
technology required for productive remote working and the urgent need for remote
working (due to high fuel prices) converged in 2008".
Jack Schultz is the CEO of Boomtown
Institute and Agracel Inc., an industrial development firm majoring in rural
America, author of Boomtown USA, and speaker. Boomtown Institute serves as an
economic development mentor to communities across the United States, leading
communities to realize their full potential.
The following is from Brian Depew with the Center for Rural Affairs. We are
Boomtown Institute and Agracel share his views on the value of investing in
rural America.
In Rural America Small Business in
King
Greater numbers of rural people are self employed or work
for small business than in urban areas. Small businesses also create most of the
new jobs in rural America, and during an economic downturn our economies rely
even more heavily on the ingenuity of rural people as they start new businesses
that rebuild our economic prospects.
Investing in small businesses also
helps revitalize our main streets and build our communities. That is why I was
pleased to hear recently that Washington is paying attention to the needs of
rural small businesses.
In the coming month the USDA will launch a new
program to support rural entrepreneurs as they start up and expand small
businesses. The new Rural Microentrepreneur Assistance Program will make grants
to organizations that provide technical assistance and make small loans to
businesses. The program was one of the victories for rural America in the 2008
farm bill.
We also received great news with the release of the
President's budget this month. The budget proposes a six-fold increase in
funding for the microentrepreneur program expanding it to $26 million annually.
That is an excellent start in the effort to expand the reach of the program and
help set rural America, and all of America, back on track.
To learn
more about the Center for Rural Affairs, visit www.cfra.org.
Jack Schultz is the CEO of Boomtown
Institute and Agracel Inc., an industrial development firm majoring in rural
America, author of Boomtown USA, and speaker. Boomtown Institute serves as an
economic development mentor to communities across the United States, leading
communities to realize their full potential.
While visiting and
speaking in Canton, IL, recently, I learned of a great program aimed at
involving retirees in efforts to improve their communities. The program's
premise states, "Today's retirees have experiences, energy, education, skills
and talents to share with the communities in which they live." In 2005, with the
help of a grant from the Retirement Research Foundation in Chicago, Spoon River
College established the Retirees Leading Initiative, which prepares retirees to
serve as civic leaders and, through the graduates' outreach projects/activities,
improve the quality of life in their regions.
The objectives of the
program are:
To prepare retirees for active roles in civic engagement through an
intensive six week training presented by representatives of community
government, education, economic development, emergency services, and area
not-for-profit organizations;
To place retirees in paid or volunteer positions of government, leadership,
and education;
To develop and facilitate community outreach projects that meet determined
needs;
To engage in intergenerational activities among retirees and community
youth, particularly those designated as at-risk.
Graduates of the
program are now serving as City Budget Officer, City ESDA Coordinator, City
Alderman, part-time instructors, conference presenters, consultants, program
coordinators, teachers in the college's Summer Youth Program, and many other
capacities.
The program was recently replicated at Spoon River College's
Havana, IL, location. In addition, the program won the 2008 Governor's Cup
Finalist Award at the Governor's Hometown Awards.
Jack Schultz is the CEO of Boomtown
Institute and Agracel Inc., an industrial development firm majoring in rural
America, author of Boomtown USA, and speaker. Boomtown Institute serves as an
economic development mentor to communities across the United States, leading
communities to realize their full potential.
One of my
favorite small town writers is Becky McCray. Becky is an entrepreneur and
rancher in the town of Enid, Oklahoma. She writes about small business and rural
issues, based on her own successes and failures.
Recently Becky created
a step by step guide to starting a shop local campaign in a small town. It
includes solid research that shows whether buy local campaigns actually work.
Becky goes through seven steps to building a truly effective campaign, including
Get Some Help; Pick a Theme; Promote Your Most Powerful Benefits; Create Just
the Right Promotional Materials; Kick Off with Events and Media Coverage;
Measure Success; and Multiply Your Shop Local Campaign. Also included is a
sample list of 10 reasons to shop local.
I would encourage all small
town chambers of commerce or merchant associations to order this guide. It will
point you in the right direction to making buy local work in your small
town!
Jack Schultz is the CEO of Boomtown
Institute and Agracel Inc., an industrial development firm majoring in rural
America, author of Boomtown USA, and speaker. Boomtown Institute serves as an
economic development mentor to communities across the United States, leading
communities to realize their full potential.
Boomtown Institute | PO Box 1107 |
Effingham | IL | 62401
May 26,
2009 Issue
228
Dear
Sara,
Earthtrepreneurship, Timothy Collins,
assistant director of the Illinois Institute for Rural
Affairs
Earthtrepreneurship. It doesn't exactly roll off the
tongue, but it's important to revitalizing the rural business-owning middle
class that can sustain communities and provide new jobs.
What is
earthtrepreneurship? It's a rural community growth opportunity in what so many
pundits are calling the new green economy. Why use the term if it's so difficult
to say? It exactly describes the types of firms that savvy individualists can
start to earn a living while respecting the earth and using its gifts to help
others at home and abroad.
Rural sustainability needs to be built on an
earthtrepreneurial middle class that understands how to create, use, and sell
appropriate technologies and services at home and around the world. In some
cases, this might well be social earthtrpepreneurship, dedicated to helping
others through a nonprofit organization. But it might also involve ways of
profitably, but responsibly nurturing and cultivating the earth's natural
heritage.
Earthtrepreneurship is based on respectful, earth-centered
ingenuity. Earthtrepreneurs understand and love their own backyards. But they
also understand that their ideas have markets elsewhere. They serve their
communities, building sustainability at home. They also serve the world,
building global sustainability.
The big question is how to develop and
sustain earthtrepreneurship in rural communities. Research on entrepreneurial
communities is helpful, but doesn't go far enough. It suggests that successful
entrepreneurs have their own skills and personalities, but their success also
can be enhanced by support from their fellow entrepreneurs and other members of
their communities. This is a long way from the rugged individualist myth of
great American entrepreneurs.
Transforming community-supported
entrepreneurship into earthtrepreneurship involves moving past the current green
fad to a fundamental recognition of the connections between communities and the
land. Rural communities, because of their size and local environment, are ideal
places to move this process forward. Communities that develop a sustainability
attitude - a close and considerate partnership between residents and the earth -
can build a better future by supporting and encouraging green business owners.
Earthtrepreneurship can be a satisfying way for someone to create a
green life's work in the community for the world. It is far more than a job. It
blends old-fashioned entrepreneurial independence with vision, confidence, and
determination to preserve our ability to survive on
earth.
Earthtrepreneurship moves beyond the creation of green-collar
jobs. It harnesses local creativity among the self-employed who are idealistic
and interested in improving the quality of life in their communities and
elsewhere. With a world view that allows them to export their ideas, products
and services, earthtrepreneurs also can attract new dollars to their
communities.
To see this entire story, along with examples of
earthtrepreneurs, visit here.
Jack Schultz is the CEO of Boomtown
Institute and Agracel Inc., an industrial development firm majoring in rural
America, author of Boomtown USA, and speaker. Boomtown Institute serves as an
economic development mentor to communities across the United States, leading
communities to realize their full potential.
Boomtown Institute | PO Box 1107 |
Effingham | IL | 62401
May 19,
2009 Issue
227
Dear
Sara,
We always look forward to the most recent posting of Rich Karlgaard's blog,
Digital Rules. Rich is the publisher of Forbes, and has been a staunch proponent
of both entrepreneurship and small town America. One of his recent blogs, An
American Heartland Renaissance, particularly caught our attention and we wanted
to share it, in part, with you.
Four economic factors,
I think, favor a revival of heartland entrepreneurship.
1. Today's economic muddle, which resembles the
1970s, is a classic breeding ground for entrepreneurship. The greatest decade of
the 20th century for start-ups was indeed the miserable 1970s: FedEx, Southwest,
Microsoft, Apple, Genentech, Oracle and Charles Schwab were started then. How
so? In tough economic periods, young talent migrates away from financial
engineering jobs and toward start-ups.
Famous example: Bill Gates graduated from high
school with an SAT score of 1590 out of 1600. His math score was a perfect 800.
Very smart, competitive and so comfortable with risk that he played for big
poker stakes in college--that was Bill Gates. In 1975, Gates upped the ante. He
quit his Harvard undergraduate education and chucked all that investment to
start Microsoft with Paul Allen.
Imagine if someone of Gates' math skills and
burning need to win (nay, vanquish his foes) had entered the workforce in, say,
2004. Surely, an investment bank would have drafted that person and installed
them in a $150,000 job with a million dollar bonus potential. But now in 2009,
such Gatesian talents again look outside of Wall Street for stimulating and
potentially remunerative jobs. Start-ups once again beckon.
2. Heartland towns like Crookston, MN (pop
7,727) and nearby population hub Grand Forks are relatively cheap places in
which to live. That, even in this downturn, is not the case in Silicon Valley,
Seattle or Shanghai. An entrepreneur can get started on little capital in
Crookston or Grand Forks and keep his/her costs low if the thing takes
off.
Say the city skeptics: Isn't one hopelessly out
of the loop in boonyack towns like Grand Forks? Hold on, slick! The times are
a-changin'.
3. Heartland towns are way more connected than
they used to be. Grand Forks, for example, is home to the University of North
Dakota, which has a Center for Innovation-ranked eighth best undergraduate
program in the country. An American urban coast dweller looks at Grand Forks and
sees the sticks. An Indian or Irishman sees opportunity. It all happens
virtually too. Broadband is the great lever between the sticks and
cities.
4. Risk capital is now figuring out how to
invest in heartland start-ups, and thus entrepreneurs feel they have license to
try ventures that could work--or might fail. Before the arrival of angel capital
networks such as Rain Source Funds, small-town entrepreneurs typically borrowed
capital from friends and family. If the start-up went bust, the entrepreneur
often felt so ashamed that he left town rather than face the town's scorn. Angel
capital puts some healthy psychological distance between the entrepreneur and
the funds. At the same time, the entrepreneur feels less isolated thanks to
expert advice provided by the angel network.
The last 90 years have been tough on America's
heartland and rural communities. But that could change with new networks of
knowledge, innovation and capital meeting the older values of work ethic, trust
and modestly priced living standards. We could see a renaissance in heartland
entrepreneurship.
We agree wholeheartedly with Rich. Over the past five years of speaking to
nearly 400 communities all over the United States, I have seen a marked
resurgence of entrepreneurism. I believe we will look back at this time and
marvel at the new start-ups that came alive during the recession of
2008-2009.
To sign up for Rich's Digital Rules blog, visit here.
Jack Schultz is the CEO of Boomtown
Institute and Agracel Inc., an industrial development firm majoring in rural
America, author of Boomtown USA, and speaker. Boomtown Institute serves as an
economic development mentor to communities across the United States, leading
communities to realize their full potential.
Boomtown Institute | PO Box 1107 |
Effingham | IL | 62401
May 12,
2009 Issue
226
Dear
Sara,
Follow the Money
Sometimes a story just warms your
heart. There are people out there who understand what makes an economic stimulus
work. Following is a great story that makes tracking the impact of the stimulus
easy and a lot of fun.
BREWTON, AL (pop.
5,498)-- A small-town pharmacist intrigued by the government
Jack Schultz is the CEO of Boomtown
Institute and Agracel Inc., an industrial development firm majoring in rural
America, author of Boomtown USA, and speaker. Boomtown Institute serves as an
economic development mentor to communities across the United States, leading
communities to realize their full potential.
Boomtown Institute | PO Box 1107 |
Effingham | IL | 62401
May 5,
2009 Issue
225
Dear
Sara,
I thought it was a thing from the 70's...
We look
in lots of places for our small town stories, not the least of which is the New
York Times. Surprisingly, we get several stories a year from the Times. While
reading the April 18th edition, I came across an article titled "Donkey Ball
Stubbornly Holds On Despite Criticism". That's a blast from the past! Until
recently, I hadn't heard much about Donkey Ball or given it much
thought.
For those of you who are unfamiliar with Donkey Ball, it is a
"quirky twist on basketball in which humans ride donkeys. Teams of four players
must be astride their mounts in order to shoot, pass or play defense. Dribbling
is nonexistent. Participants wear elbow pads and helmets, and they usually
attend a briefing on the rules and treatment of the animals."
Donkeys,
by nature, are stubborn. They play for carrots and really don't care which team
wins or looses. Some donkeys are trained to buck or to duck their heads, sending
the players sliding to the floor. It really is quite comical.
Especially
if you know the team members. That's the part that really caught my eye. Donkey
Ball isn't played in big cities or metropolitan areas. It is played in small
towns. As one owner of a Donkey Ball company commented, "The game is most
popular in rural communities, where the event is often a sellout. Half the fun
is watching the school principal or the mayor fall off a donkey. If you play in
downtown Minneapolis or St. Paul, they just don't know each other."
A
couple of Agracel employees recently attended Donkey Ball games at their
respective high schools. Each event was held as a fundraiser for a school
organization. Participants included high school teachers, coaches, students,
administration, and local public servants such as a police officer and volunteer
firemen. One of the schools was able to raise $3,000 for their Student Council.
And not one donkey was hurt.
Donkey ball has been around since at least
the 1930's, kept alive by fewer than a dozen family businesses today. Hopefully
animal-welfare groups and lawsuit happy lawyers will not put these family
businesses out of business.
If there is a Donkey Ball game in your
area, you should plan to attend. Not only will you be helping out a fundraising
effort for a local group, you will have a load of fun!
Special Announcement
You may recall back in
March 2009, we featured an Agurban on Small Towns, Big Ideas. Will Lambe,
associate director of the Community and Economic Development Program at the
University of North Carolina's School of Government, conducted a yearlong study
to identify and document stories of small towns that are surviving and thriving.
(You will find our Agurban here.)
We just received word that Eric Canada
of Blane, Canada, Ltd., a nationally recognized authority on economic
development marketing and business retention, will be moderating an Economic
Development Webinar featuring Will Lambe.
By participating in the
webinar, you will learn a framework for understanding economic development in
small towns, local ingredients for success and innovation in small town
development, real examples of how some small towns are moving the needle, and
innovative assets for modern small town development.
At the end of the
webinar you will have the opportunity to ask questions of Mr. Lambe.
Jack Schultz is the CEO of Boomtown
Institute and Agracel Inc., an industrial development firm majoring in rural
America, author of Boomtown USA, and speaker. Boomtown Institute serves as an
economic development mentor to communities across the United States, leading
communities to realize their full potential.
Boomtown Institute | PO Box 1107 |
Effingham | IL | 62401
April 28,
2009 Issue
224
Dear
Sara,
Moody's Job Outlook
Moody's, an economic consulting firm, recently released
a study that looks at state-by-state job growth over the next three years. It's
a good news, bad news scenario. The good news, Moody's predicts that overall in
the United States, we should see job growth by mid-2010, with total jobs growing
by approximately 11 million through the end of 2012. The bad news, we won't see
job growth in the U.S. until mid-2010.
An interactive graphic shows
last year's actual job growth/loss and Moody's Economy.com's forecasted job
growth/loss for 2009 through 2012, in total and by sector. It covers every U.S.
state and 384 metro areas, subdivided into fourteen industry sectors, including
manufacturing, construction, and financial activities. The data is seasonally
adjusted. Check it out here.
The outlook for
individual states and sectors varies widely. It is encouraging to see the
turnarounds predicted for all sectors.
At Agracel, we are seeing a marked
increase in inquiries for new facilities, with companies looking out two and
three years. We firmly believe that the bottom in the 08/09 recession is close
or has passed.
Jack Schultz is the CEO of Boomtown
Institute and Agracel Inc., an industrial development firm majoring in rural
America, author of Boomtown USA, and speaker. Boomtown Institute serves as an
economic development mentor to communities across the United States, leading
communities to realize their full potential.
Boomtown Institute | PO Box 1107 |
Effingham | IL | 62401
April 21,
2009 Issue
223
Take Charge of Your
Community
Within the past couple of weeks, we have
received two great stories from community leaders telling about the positive
things happening in their hometowns. Each involves a powerful Can Do
Spirit.
Estherville, IA
You spoke at our chamber banquet in
Estherville, Iowa about five years ago in our new community complex. Remember?
That spirit you felt at that time is alive and well today!
Today, the
national economy is in a recession. But in Estherville, we just opened two new
industries (25 new jobs), will open two new retail stores in the next few days
and weeks, opened a new coffee shop and have several new business prospects.
Wow! Sure, we've had some layoffs by local industries. We do our best to assist
with that but we don't let the negative dictate how we operate here.
We
completed a 10-year strategic plan last year and now have more than a 100
volunteers working on the nine overall goals and 38 specific strategies
identified to get us started. We raised $100,000 in 100-days to get folks
started. In the next few years, I believe we will re-open a local downhill ski
facility, develop a new ATV trails park, develop a new RV camp ground, develop a
new moto-cross riding and racing facility, expand our trails system and much
more.
We met several years ago when you presented in Lincoln. I
asked you the question of whether civic leadership should be driving change or
if the residents and businesses should be driving change with the support of the
local governments. You suggested the latter. Here is an example of how we have
moved forward with that mindset.
Last year, 14 of the 22 churches in
Lincoln came together and created an organization called Together For Lincoln
(TFL). TFL was loosely structured and was organized by approximately 40
individuals from the different churches wanting to make a positive impact on the
community. I will summarize a great, long story to create a great short story
by saying we held a day of service for our community. Just over 1,000
volunteers from our community of 15,000 pulled together on September 28th to do
everything from walking the streets to pick up trash to washing windows for
elderly, building new steps and handicap ramps, visiting everyone in each
nursing home, fixing roofs, siding houses, winterizing homes, repairing,
replacing and painting playground equipment at schools, cleaning up yards, etc.
Approximately 118 different projects were completed across the community in one
day, all of which were completed at no charge to the recipient and most of which
were for the less fortunate, elderly and single parent families. Needless to
say, the community was touched. Here is a link to a video that was
put together from the event.
We have recently launched another program facilitated by Together For
Lincoln. The members of TFL considered the affects of a financial disaster in
our community. Would we respond the same way as we would to a natural disaster
by pulling together to help those in need? As a result, we have facilitated a
community wide program that leverages Dave Ramsey's Financial Peace University
curriculum to eliminating debt and building wealth in personal finances. Based
on Ramsey's statistics as well as those who have completed the program right
here in Lincoln, the average family that completes the program will eliminate
approximately $5,700 in debt and put approximately $2,300 in savings in the
first 91 days. These are averages and this is not a get rich quick scheme. The
program uses very practical and common sense approaches. But, an $8,000
positive impact to a family in huge! Multiply that by 1,000 families and that
is an $8,000,000 impact! TFL believes this is our own local stimulus program
that will have long lasting affects in the people and the community, thereby
building a stronger community.
I have attached a press release as well
as some links to news stories. As small towns across America begin to think in
terms of controlling their own destiny and investing in and building up their
own residents, we will begin to see these grass roots movements making
significant impacts in a variety of ways.
I am passionate about this and
my community and I felt this was news worthy information to pass along to you.
Thank you for all you do and keep up the good work!
Jack Schultz is the CEO of Boomtown
Institute and Agracel Inc., an industrial development firm majoring in rural
America, author of Boomtown USA, and speaker. Boomtown Institute serves as an
economic development mentor to communities across the United States, leading
communities to realize their full potential.
Jack Schultz is the CEO of Boomtown
Institute and Agracel Inc., an industrial development firm majoring in rural
America, author of Boomtown USA, and speaker. Boomtown Institute serves as an
economic development mentor to communities across the United States, leading
communities to realize their full potential.
Boomtown Institute | PO Box 1107 |
Effingham | IL | 62401
April 7,
2009 Issue
221
Prospering Rural Communities
The general view of rural America is one of dying rural communities,
beset by poverty, a lack of opportunity, declining populations. Research led by
Andrew Isserman, a professor in the Department of Agriculture and Consumer
Economics at the University of Illinois, concludes that this consensus is
unfounded.
"Far more rural people live amidst local growth than face
local decline," Isserman states. "In 2000, six million rural residents lived in
counties that would decline 2% or more by 2005, but six times as many - 36
million - lived in counties that would grow 2% or more." Isserman continued,
"Making non-metropolitan synonymous with rural omits more than half the nation's
rural population. When you actually look at rural areas - the 97% of U.S.
territory not in an urban or suburban area - you get a very different
picture."
Isserman and his team also set out to define prosperity, using
a broader set of measures. "Our definition includes education and housing as
well as poverty and unemployment," states Isserman. "The ability of a community
to keep its children in school through high school and the housing conditions
its residents face are reasonable indicators of a community's prosperity."
Applying these definitions of rural and prosperity, the researchers
found more than 400 prosperous rural counties. Prosperous counties have lower
poverty rates, lower unemployment rates, lower high school dropout rates, and
lower rates of housing problems than the nation as a whole.
The keys to
rural prosperity?
According to Isserman, "Some of our statistical
results support what many rural people believe to be true. Religious groups and
other identities that bind people together can really matter. Other findings are
more conventional. Rural communities with relatively more people with some
college education are more likely to prosper, as are communities with vigorous,
competitive, private economies."
Contradicting conventional wisdom, the
study also found that geographical factors that are impossible or expensive to
change, including climate and distances to cities and major airports, are
relatively unimportant in distinguishing prosperous and other rural places. This
confirms the same finding we found in our research for Boomtown USA. Successful
towns make do with what they have.
In Isserman's conclusion, he
comments, "...prosperity does not happen on its own. It happens through solid
and visionary leadership, having a "Can-Do" attitude and exhibiting a
willingness to take risks. It happens through knowing what your town's strengths
and resources are and how to leverage those strengths and resources. It happens
through building a brand for your town, a concept that often prompts quizzical
looks, yet one that successful small towns have embraced." Sound familiar? That
quote is from Boomtown USA - The 7 ½ Keys to Big Success in Small Towns!
Jack Schultz is the CEO of Boomtown
Institute and Agracel Inc., an industrial development firm majoring in rural
America, author of Boomtown USA, and speaker. Boomtown Institute serves as an
economic development mentor to communities across the United States, leading
communities to realize their full potential.
Boomtown Institute | PO Box 1107 |
Effingham | IL | 62401
March 31,
2009 Issue
220
Can Our Country Afford to Lose These
People?
We have often reported about studies funded by the
Kauffman Foundation, one of the largest foundations in the United States devoted
exclusively to entrepreneurship. In addition, we have discussed immigration and
the value of immigrants to the business communities in many U.S. cities. A new
report, America's Loss Is the World's Gain, was recently released by the
Kauffman Foundation, along with Duke University, UC Berkeley, and Harvard
University.
According to the study, between 1990 and 2007, the
proportion of immigrants in the U.S. labor force increased from 9.3 percent to
15.7 percent. Immigrants have historically provided one of America's greatest
competitive advantages. They have come to the United States largely to work and
have played a major role in the country's growth through 2007. They have
contributed disproportionately in the most dynamic part of the U.S. economy- the
high-tech sector. Immigrants have co-founded firms such as Google, Intel, eBay,
and Yahoo. And, immigrants contributed to more than a quarter of U.S. global
patent applications.
Since even before the 2008 financial and economic
crisis, some observers have noted that a substantial number of highly skilled
immigrants have started returning to their home countries, including persons
from low-income countries like India and China who have historically tended to
stay permanently in the United States.
The study focused on Indian and
Chinese immigrants who had worked or received their education in the United
States and returned to their home country, and sought answers to questions such
as what motivated their decision to leave the United States and how have they
fared since returning to their home country?
The researches' early
motivation for the study was to see if immigrants were leaving the United States
because of their frustration with the wait to receive a permanent-resident visa,
and to determine if the Wall Street meltdown was contributing to the
exodus.
The study found that, though restrictive immigration policies
caused some returnees to depart the U.S., the most significant factors in the
decision to return home were career opportunities, family ties and the quality
of life, with the overwhelming preference for returning being to care for aging
parents and to be closer to family and friends. In addition, as the economies of
China and India develop, opportunities are now available for middle-and
upper-class standards of living that were not previously available.
The
returnees surveyed still believe that the United States remains superior in
areas such as education and certain career opportunities, and a majority of the
respondents indicated that they would at least consider returning to the U.S. if
they could get a visa and a good job.
The study concluded that if the
U.S. Government and the business community could find better ways to offer good
jobs in tandem with less restrictiveness in visa policies for talented
immigrants, the U.S. might be able to recapture many of these immigrants and
their potential to serve as a much needed growth engine for the U.S. economy.
I have often discussed the value of immigrants to the U.S. work force
and economy. Immigrants have historically provided one of American's greatest
competitive advantages. Remember, most of us do not have to look too far back in
our heritage to find when our own ancestors immigrated to this great country of
ours.
Jack Schultz is the CEO of Boomtown
Institute and Agracel Inc., an industrial development firm majoring in rural
America, author of Boomtown USA, and speaker. Boomtown Institute serves as an
economic development mentor to communities across the United States, leading
communities to realize their full potential.
Boomtown Institute | PO Box 1107 |
Effingham | IL | 62401
March 24,
2009 Issue
219
$850 Million to Create Jobs? Don't Forget the
Incubators!
A recent study for the U.S. Department of Commerce
- Economic Development Administration shows that business incubators provide
communities with significantly greater results at less cost than do any other
type of public works infrastructure project.
The following is an
excerpt from the National Business Incubation Association's January 27, 2009,
press release:
In the study of the economic impacts and federal costs of
EDA construction program investments, researchers found that business incubators
are the most effective means of creating jobs - more effective than roads and
bridges, industrial parks, commercial buildings, and sewer and water projects.
In fact, incubators provide up to 20 times more jobs than community
infrastructure projects (e.g., water and sewer projects) at a cost of $144 to
$216 per job compared with $2,920 to $6,872 for the latter, the report notes.
"We agree with investing in highways, bridges and other elements of our
aging infrastructure," says Dinah Adkins, president & CEO of the National
Business Incubation Association, a 1,900-member organization representing
incubation programs in 59 countries. "However, business incubators are critical
components of the nation's entrepreneurial support infrastructure and the only
public works projects that were designed entirely as job generators. It is
vitally important that the nation leverage its existing investments in
incubators to generate new jobs and innovations and to help individuals facing
layoffs to start their own firms," Adkins says.
The responsible
solution, she notes, is not choosing between roads and bridges or incubators but
in ensuring that incubators, which have proven themselves to be the most
significant generators of new jobs, are not left out.
Business
incubation programs provide entrepreneurs with a guiding hand to help them turn
their ideas into viable businesses. Since the first incubator opened in Batavia,
N.Y., 50 years ago, incubation programs around the world have been providing
client companies with business support services and resources tailored to young
firms to help increase their chances of success.
In a recurring theme
throughout the study, the authors note that "EDA's strategic focus on innovation
and entrepreneurship makes sense, in that investments in business incubators
generate significantly greater impacts in the communities in which they are made
than do other project types."
Another EDA-funded study in the mid-1990s
found that 87 percent of all firms that had graduated from NBIA member
incubation programs were still in business - and about 84 percent of those
graduates remained in the incubator's community. "The jobs created by incubators
aren't one-time construction jobs," Adkins explains, "but enduring, high-paying
positions that contribute to community and U.S. global competitiveness."
NBIA estimates that in 2005 alone, North American incubators assisted
more than 27,000 start-up companies that provided full-time employment for more
than 100,000 workers and generated annual revenue of more than $17 billion. Many
thousands more jobs have been created by companies that have graduated from
these programs and now operate self-sufficiently in their communities.
The recent study showed that on average, EDA investments produce
between 2.2 and 5.0 jobs per $10,000 in federal spending, for a federal cost per
job of between $2,001 and $4,611. Business incubators create between 46.3 and
69.4 jobs per $10,000 in federal investment, for a federal cost per job of
between $144 and $216.
In my travels around America over the past five
years, I've seen numerous examples of incubators and the success stories they
have helped to create. If your community does not have an incubator, it is worth
checking into. For more information about business incubation, visit www.nbia.org/.
Jack Schultz is the CEO of Boomtown
Institute and Agracel Inc., an industrial development firm majoring in rural
America, author of Boomtown USA, and speaker. Boomtown Institute serves as an
economic development mentor to communities across the United States, leading
communities to realize their full potential.
Boomtown Institute | PO Box 1107 |
Effingham | IL | 62401
March 17,
2009 Issue
218
Top 30 Innovations of the Last 30
Years
The Public Broadcasting System (PBS) began its regular broadcasts of
the Nightly Business Report in 1979. In celebration of their 30th year on
television, Nightly Business Report partnered with Knowledge@Wharton to identify
"The Top 30 Innovations of the Last 30 Years." NBR viewers suggested the
advances they admired during the 1979 to 2009 time frame. Professors at The
Wharton School of the University of Pennsylvania selected and ranked the top
thirty. We think the list is worthy of sharing with our Agurban readers. You
will note that several have specific applications to rural America.
#30
- Anti-Retroviral Treatment for AIDS #29 - SRAM/Flash Memory #28 - Stents
(coronary stents) #27 - ATMs #26 - Bar Codes and Scanners #25 -
Biofuels #24 - Genetically Modified Plants #23 - RFID and applications
(Radio Frequency Identification) #22 - Digital Photography/Videography #21
- Graphic User Interface (GUI) #20 - Social Networking via Internet #19 -
Large Scale Wind Turbines #18 - Photovoltaic Solar Energy #17 -
Microfinance #16 - Media File Compression #15 - Online
Shopping/E-Commerce/Auctions #14 - GPS #13 - Liquid Crystal Displays
(LCDs) #12 - Light Emitting Diode products (LEDs) #11 - Open Source
Software and Services #10 - Non-Invasive Laser/Robotic Surgery #9 - Office
Software #8 - Fiber Optics #7 - Microprocessors #6 - Magnetic Resonance
Imaging (MRI) #5 - DNA Testing and Sequencing/Human Genome Mapping #4 -
E-Mail #3 - Mobile Phones #2 - PC/Laptop Computers #1 -
Internet/Broadband/World Wide Web
I would have to agree. And this is
just the past 30 years! We have grown so accustomed to these items. It's hard to
remember when we didn't have them. This begs the question: What will they think
of next?!!
Jack Schultz is the CEO of Boomtown
Institute and Agracel Inc., an industrial development firm majoring in rural
America, author of Boomtown USA, and speaker. Boomtown Institute serves as an
economic development mentor to communities across the United States, leading
communities to realize their full potential.
Boomtown Institute | PO Box 1107 |
Effingham | IL | 62401
March 10,
2009 Issue
217
Small Towns, Big Ideas
A
recent press release from the University of North's Carolina School of
Government caught our eye. The headline was "Small Towns, Big Ideas: Case
Studies of Innovation". Will Lambe, associate director of the Community and
Economic Development Program at the School of Government, conducted the yearlong
study in collaboration with the North Carolina Rural Center. The publication
"features real stories, from real places that are successfully confronting real
challenges similar to those facing small communities everywhere, such as
globalization, geographic isolation, urban sprawl, aging populations, and
natural disasters."
According to the study, seven themes emerged that
offer take-away lessons for other communities hoping to learn from small towns
with big ideas. Those include:
In small towns, community development is economic development. Communities
that incorporate economic and broader, longer-term, community development goals
stand to gain more than small towns that take a piecemeal approach.
Small towns with the most dramatic outcomes tend to be proactive and
future-oriented; they embrace change and assume risk. Being proactive (as
opposed to reactive) can be measured by a small town's willingness and ability
to act on a particular challenge before it becomes a problem.
Successful community economic development strategies are guided by a broadly
held local vision. Case after case has demonstrated that people (as opposed to
money or other resources) are the one absolutely necessary ingredient to
successful development. A committed group of local residents who are willing to
work hard for their community's interests can change the fate of an otherwise
hopeless community.
Defining assets and opportunities broadly can yield innovative strategies
that capitalize on a community's competitive advantage. Assets for small town
development might include individual people, nonprofit organizations,
businesses, open space, farms, parks, landfills (biomass), museums, schools,
historic architecture, local attitudes or any number of other things.
Innovative local governance, partnerships and organizations significantly
enhance the capacity for community economic development. The key to innovative
local governance is to think creatively, but always keep the community's overall
net benefits in mind. Regionalism and partnerships beyond municipal boundaries
can help small towns to pool resources toward shared objectives.
Effective communities identify, measure and celebrate short-term successes
to sustain support for long-term community economic development. Leaders in
small towns must repeatedly make the case for the importance of their efforts to
maintain momentum, invigorate volunteers and donors, convince skeptics and, most
importantly, keep the focus on the vision or the goals established in a
community's strategic plan.
Viable community economic development involves the use of a comprehensive
package of strategies and tools, rather than a piecemeal approach. Successful
development in small towns is always multifaceted. Successful communities tend
to have evolved to the point where they have a comprehensive package of
strategies and tools that are aligned with the core assets, challenges and
opportunities with their regional context.
The report includes 45 case
studies of small towns across the United States that are using a wide range of
community and economic development strategies to advance their communities'
vision for prosperity. The entire report can be downloaded from www.cednc.unc.edu/stbi.
We
at Boomtown Institute have been studying small towns for over two decades. My
research for Boomtown USA - The 7 ½ Keys to Big Success in Small Towns, along
with my travels over the past five years to nearly 400 communities throughout
the United States, echoes the findings of Will Lambe. There are great things
happening in rural America!
Jack Schultz is the CEO of Boomtown
Institute and Agracel Inc., an industrial development firm majoring in rural
America, author of Boomtown USA, and speaker. Boomtown Institute serves as an
economic development mentor to communities across the United States, leading
communities to realize their full potential.
Boomtown Institute | PO Box 1107 |
Effingham | IL | 62401
March 3,
2009 Issue
216
Still a Trend
One of my 2008
Top Ten Trends was "Birds Beating Birdies". One of the fastest growing spectator
sports in the USA is bird watching. Golf will still be important, I suggested,
but not as dominant as it was in the 1990's.
I blogged on the Chicken Dance Trail
on April 18, 2007. Two sisters, Nancy Herhahn and Betty Sayers, started the
Chicken Dance Trail website dedicated to birds in SW Nebraska. It is named after
the unique mating dance of the Great Prairie Chicken in which males raise their
ear-like feathers above their heads and inflate orange sacs on the sides of
their throats.
The Chicken Dance Trail is a collection of great bird
watching locations in southwest and south central Nebraska, between the Platte
and Republican Rivers. Millions of different birds come through the area during
spring and summer migrations, making it one of the best places in the country to
see a wide variety of species in a relatively small area.
Thanks to
Phil Soreide for reminding us that "Just because it's winter doesn't mean you
have to give up birding as a rewarding hobby."
Isn't this a beautiful Northern
Cardinal? Check out the Chicken Dance Trail to learn
more.
Jack Schultz is the CEO of Boomtown
Institute and Agracel Inc., an industrial development firm majoring in rural
America, author of Boomtown USA, and speaker. Boomtown Institute serves as an
economic development mentor to communities across the United States, leading
communities to realize their full potential.
Boomtown Institute | PO Box 1107 |
Effingham | IL | 62401
February 24,
2009 Issue
215
USDA's 2007 Census of Agriculture -
Conclusion
Our final installment in our look at the USDA's 2007
Census of Agriculture will look at the economics of farming. In 2007, U.S. farms
sold $297 billion in agricultural products while incurring $241 billion in
production expenses. Income from sales increased 48 percent between 2002 and
2007, while production expenses increased 39 percent. The steepest cost
increases were for gasoline and fuel, up 93 percent, and fertilizer, up 86
percent.
The value of agricultural production is concentrated in a few
regions: the Midwest, the Mississippi Delta, California and the Atlantic Coast.
The top five states for the value of agricultural products sold and their
percentage of total value are: California (11.4 percent), Texas (7.1 percent),
Iowa (6.9 percent), Nebraska (5.2 percent) and Kansas (4.8 percent). In
addition, fifty percent of the total value of agricultural products comes from
nine states: California, Texas, Iowa, Nebraska, Kansas, Illinois, Minnesota,
North Carolina and Wisconsin. The single largest county in terms of agricultural
products sold in 2007 was Fresno County, California, with $3.7 billion.
The top five industries in terms of net cash income produced were
grains and oilseeds, milk, poultry and eggs, fruits and nuts, and nursery and
greenhouses. Some industries has negative income, including sheep and goats,
and aquaculture and other animals (including horses).
In total, $8
billion in government payments were received by 840,000 farms in 2007, with an
average payment of $9500 per farm. Most of these payments went to farms that
produced grains and oilseeds. Of the $8 billions, $1.8 billion was for the
Conservation Reserve Program, which removes environmentally sensitive land from
agricultural production.
Items added for the first time in the 2007
Census include Organic Production, On-Farm Energy Generation, Number of Farms
"Marketed Through Community Supported Agriculture", and Number of Farms with
"Barns Built Prior to 1960", which is 664,264 for the country as a whole. The
2007 Census also looked at high-speed Internet access for the first time, with
58 percent of farmers having a high speed connection.
Jack Schultz is the CEO of Boomtown
Institute and Agracel Inc., an industrial development firm majoring in rural
America, author of Boomtown USA, and speaker. Boomtown Institute serves as an
economic development mentor to communities across the United States, leading
communities to realize their full potential.
Boomtown Institute | PO Box 1107 |
Effingham | IL | 62401
February 17,
2009 Issue
214
USDA's 2007 Census of Agriculture - Part
II
Last week we discussed the trends in farm numbers, according
to the USDA's 2007 Census of Agriculture report. This week we will touch on the
demographics of farms.
According to the report, there is growing ethnic
and racial diversity among farm operators nationwide, and the percentage of
women operators is up. Of the 2.2 million farms in the U.S., 1.83 million have a
white male operator. The number of operators of Hispanic origin increased 10
percent over the five year period, but most significantly, the number of female
principal operators increased almost 30 percent during the same timeframe.
We have always kept an eye on the average age of farmers. Unfortunately,
the average age increased again from 2002 to 2007, from 55.3 years to 57.1. The
number of operators 75 years and older grew by 20 percent from 2002, while the
number of operators under 25 years of age decreased 30 percent. It just doesn't
make sense that farmers are the second oldest aged profession in the country
(behind draw bridge operators), for a job that is so hazardous.
Most farms in the U.S. are small, with 60 percent of all farms reporting
less than $10,000 in sales of agricultural products. The share of farmers
working off-farm grew from 55 percent in 2002 to 65 percent in 2007. Also,
operators of larger farms tend to be younger, are more likely to report farming
as their primary occupation, and are less likely to work off the
farm.
Next week, we will wrap up our series on the USDA's Census of
Agriculture, reviewing the economic aspects of farming.
Jack Schultz is the CEO of Boomtown
Institute and Agracel Inc., an industrial development firm majoring in rural
America, author of Boomtown USA, and speaker. Boomtown Institute serves as an
economic development mentor to communities across the United States, leading
communities to realize their full potential.
Boomtown Institute | PO Box 1107 |
Effingham | IL | 62401
February 4,
2009 Issue
212
Business Startups
Critical to Job Creation
The Kauffman Foundation is one of the
largest foundations in the United States devoted to entrepreneurship. A recent
Kauffman Foundation-funded U.S. Census Bureau study reports that "startup
companies are a major contributor to job creation."The Business Dynamic
Statistics (BDS) include measures of establishment openings and closings, firm
startups, job creation and destruction by firm size, age, and industrial sector,
and several other statistics on business dynamics.
Following are
highlights of the study:
"Job growth is essential for our economy to
rebound, and this study shows that new firms have historically been an important
source of new jobs in the United States," said Robert E. Litan, vice president
of Research and Policy at the Kauffman Foundation. "Our research into the early
years of business formation consistently shows how vital new firms are to our
economy, and this data should give policymakers and budding entrepreneurs alike
great hope for how we can solve our current crisis-create and grow jobs through
entrepreneurship."
The BDS data show that employment accounted for by
U.S. private-sector business startups over the 1980-2005 period was about 3
percent per year. While still a small fraction of overall employment, these jobs
from startups reflect new jobs, which is a large percentage compared to the
average annual net employment growth of the U.S. private sector for the same
period (about 1.8 percent).
The Figure below shows the fraction of jobs
due to business startups for all firms and for selected firm size classes: micro
firms and midsize firms to large firms.
Micro firms (firms with one to four employees) accounted for a large
percentage of new jobs in any given year-about 20 percent on average. Although
substantially larger startup firms (those with 250 to 499 employees) created a
considerably smaller percentage of jobs in any given year-about 1.3 percent of
employment in this firm-size class-their numbers still are substantial relative
to net growth.
As the figure shows, business startups tend to be mildly
procyclical. In business cycle downturns (shown in shaded areas) business
startups decline slightly in most of the cyclical downturns (2001 is an
exception). However, it is striking that business startups remain robust even in
the most severe recession over the sample period (in the early 1980s). The
procyclicality is more apparent for the business startups by micro firms.
This simple comparison highlights the importance of business startups
to job creation in the U.S. During this time of economic uncertainly, we believe
that this study echoes our sentiments on the value of entrepreneurs, not only to
your communities, but to our country as a whole. Entrepreneurs will be in the
forefront as our economy moves forward.
Jack Schultz is the CEO of Boomtown
Institute and Agracel Inc., an industrial development firm majoring in rural
America, author of Boomtown USA, and speaker. Boomtown Institute serves as an
economic development mentor to communities across the United States, leading
communities to realize their full potential.
Boomtown Institute | PO Box 1107 |
Effingham | IL | 62401
It's
now been five years since I published BoomtownUSA and got the opportunity to
travel around this great country of ours sharing my message of great things
going on in towns all over the USA. During that time I've gotten the
chance to tour over 400 towns in 44 states and have seen some really incredible
sights. With this being my last year of doing talks, I wanted to share
with you those things that I would do in every town, if I had a magic wand to
be able to do so.
Top Ten Things I'd Do in Every Town Community Foundation - A Community Foundation allows a
community, whether it be a single town, county or even a region, to marshal
small donations and funds into the efficiency of a large foundation, altering
the fabric of that community for the long term. Indiana has been the
leader in setting these up in every one of their counties, because of the
leadership of the Lilly Foundation.
Brain Bank - Many of our small towns have seen a
tremendous brain drain of their best and brightest. However, that drain
could be converted into a tremendous asset and several towns have started to
cultivate those ex-residents into ambassadors for their communities.
North Dakota is doing it in a state-wide initiative.
Entrepreneurial Education - The new paradigm in economic
development is to cultivate your own entrepreneurs. Just as the best high
school sports teams start to develop their talent in grade school, those towns
that want to be part of the new economy are developing entrepreneurial
educational initiatives into their high schools and grade schools.
Generation E Institute in Battle Creek, Michigan, is the best that I've seen.
Young Professional Organizations - Gen X and Gen Y needs
to be nurtured. They are the leaders of the future and those leadership skills
need to be developed now. The best I've seen are YPIowa in Iowa and
YBNext in my hometown of Effingham, IL.
Arts - Quality of life issues are going to be more
important in the decision of where to live and develop a career. Baby
boomers went to where the jobs were. Gen X & Y young people are more
focused upon quality of life for that decision. All arts are becoming
more important for them in that decision. Make it easy for them to choose
your town by emphasizing your art assets. Paducah, Kentucky, has done it
best.
Tourism - Find the inexpensive ways to promote visits to
your town. Use videos on your cable system, motel keys with info and very
inexpensive ezines to let people know why they should come, visit and stay.
Downtowns - They are going through resurgence with the
upstairs being fixed up into apartments and condos. Having people living
in the downtown area encourages more restaurants, bars, coffee shops,
etc. That in turn encourages more to live downtown and the cycle
continues upward. Oxford, Mississippi, is the best I've seen.
Mentoring - Two models stick out for me. One that I
saw in Carroll, Iowa, has developed a mentoring program for their college
students, pairing them up with local jobs and CEOs during the summer. The
other is aimed toward at-risk grade schoolers, putting local volunteers in
one-on-one mentoring. We're up to 130 mentors in Effingham.
Downtown Signs - You can't have enough signs that show
visitors how to get to your downtown. If they can't find it, how are they
going to shop there? Jackson, Michigan, has the best I've seen.
From every direction signs route visitors to the downtown area.
Angel Investor Network - Local banks can help to provide
most of the start-up funds for new businesses, but having an angel investor
network provide the equity to help get the new entrepreneurs into operation.
Top Ten Things I'd Do in Every Town - Responses
We
received several suggestions to what could be done in every community to make
it better. First, one correction. In my first suggestion, Community
Foundations, Indiana has been the leader in setting up foundations in every
county because of the leadership of Lilly Endowment, Inc. We apologize for the
error. Now, for those additional suggestions:
*
One of the ideas I've had for small communities is to create a volunteer data
base. You would ask anyone interested in volunteering for their town to list
their skills and how much time they would be willing to contribute (weekly,
monthly, yearly....whatever), their contact information and perhaps their
preferences as to when they would most likely be able to work (for example:
Mondays and Thursdays 10 AM - 4PM; or any evening, or anytime when needed).
Roger E. Hunt, Trees Forever, Columbus Junction, IA.
*
Public education is still a MAJOR part of the equation. The public needs
to understand that there is a reason it is called PUBLIC EDUCATION. They also
need to understand that not all education takes place in school. ...if we can't
do a better job of educating our kids, (I) don't think it makes a whole lot of
difference how nice downtown looks. Larry Lee, Director, Center for Rural
Alabama.
*
Communities need to have access to funding and financing for a number of
purposes. It would include public, private, and nonprofit funding. In addition
to a community foundation and angel network, I would add a pooled debt vehicle
to reduce risk for local banks. Diane Lupke, CEcD & President, Lupke &
Associates, Evanston, IL.
*
Recreation - This could take many forms, but it's important to the quality of
life. Rachelle Hollinshead, Community and Economic Development Educator,
Vandalia, IL.
*
Host monthly public open forums to find out areas of opportunity. Trisha Mason,
Coordinator, East Central IL Development Corporation, Mattoon, IL.
We
also heard from several readers about how their community has already embarked
on some of the ideas from my original list. Those include:
*
Sidney, MT. See what they are doing here. Thank
you, Ray Trumpower!
*
Pine City, MN, is already taking initiatives in many areas, including the
Greater Pine Area Endowment, Pine Technical College, Young Professionals Group,
Pine Center for the Arts, Downtown Leadership Group, and many other endeavors
to help their community. Thanks to Nathan Johnson for sharing these with us!
*
From Bonnie Hildreth, President & CEO of the Barry Community Foundation in
Hastings, MI, "In Michigan, every resident has access to a community
foundation due to the generosity of the Kellogg Foundation! We would be remiss
to not mention them!"
It is wonderful to hear how people are engaging to make their community a
better place to live, work and play, and a place their children and
grandchildren will be proud to call home. Keep up the good work!
State of the Year Award
Business
Facilities magazine recently announced their State of the Year Award. The award
is based on data submitted by states on their five largest projects, measured
by total capital investment and by creation of new jobs. The winner for 2008 was
Michigan.
Surprised? I was. With all the publicity of the Big Three and the perils they
face, who would have thought that Michigan would come out on top? Fortunately
for Michigan, there are many industries and jobs that aren't directly linked to
the automotive industry that have propelled the state to the top.
While one project is directly linked to the automotive industry (a $838-million
investment by General Motors to develop and produce the Chevrolet Volt, their
new electric car), the others involved petrochemicals, finance, clinical
research and insurance. In all, companies planned to make a $13.8-billion
investment in the State of Michigan in 2008, and create nearly 10,000 new jobs.
Finishing in second place was the State of Montana, with over $8.5-billion in
investment, creating some 5,000 new jobs. Most of Montana's new projects
revolved around the multifaceted energy industry, including a coal-to-liquid
facility, a crude oil pipeline, a coal mine and two new wind power companies.
The magazine also noted that on a regional basis, the South dominated the
competition, with strong entries coming from Alabama, Florida, Georgia,
Kentucky, Mississippi, North Carolina, Tennessee and Virginia.
To read the complete Business Facilities, click here.
Hopefully these new projects will help lead our country to an improved economy.
While the national media often focuses upon the dire outcomes of plant
closings, jobs lost and financial turmoil, there are companies that are
expanding. We're seeing it every day in our work at Agracel.
Home Prices in Rural America
The Federal Reserve Bank of Kansas City has
a great publication called The Main Street Economist, a bimonthly electronic
newsletter that reviews the major economic challenges and opportunities in the
Tenth District, both in rural and urban communities. The latest issue looked at
housing prices in rural America. Below are excerpts from the issue entitled
"Is Rural America Facing a Home Price
Bust?"
"Rural America was largely bypassed by the national home price boom of the
first half of this decade and thus seems likely to avoid much of the correction
in U.S. home prices currently under way. According to the Office for Federal
Housing Enterprise Oversight (OFHEO) index, since early 2007, home prices in
rural areas have risen slightly more than 2 percent. Though small, this
increase compares favorably with the severe decline of nearly 8 percent in
metro-area home prices during the same period.
To see in general terms why rural home prices have not mirrored price drops in
metro areas, one need only look at a longer history of home price trends.
During the first half of this decade, the average annual price gains of homes
in metro areas was nearly 10 percent, with gains approaching 15 percent in 2004
and 2005. By contrast, home price gains in rural parts of the country stayed
largely in line with recent historical averages through 2003, before rising
somewhat more rapidly from mid-2004 to mid-2006.
Since rural areas experienced much less of the home price boom of the first
half of this decade, it stands to reason that now they are experiencing less of
a bust. But why did home prices increase less in rural areas than in metro
areas during the boom years? Two potential reasons stand out - greater
availability of rural land and, perhaps somewhat better credit underwriting
standards by rural lenders.
In conclusion, unlike metro areas, housing markets in rural areas of the
country have suffered only a glancing blow from declining home values. Any
future home price declines in rural America are likely to be much less severe
than in cities. Still, rural home values are unlikely to rise appreciably in
the years ahead."
We at Boomtown Institute and Agracel have long touted the benefits of living in rural America. Our rural
areas may miss some of those metro area trends, but the sky-rocketing home
prices and subsequent bottoming-out, is one trend we are happy to bypass. The
rural economy maintains a generally stable level, avoiding high highs and low
lows. We will continue to watch the housing market in both the rural and metro
areas.
our gift was a book entitled "Our
Sacred Honor - An Annotated Guide to Understanding Our Founding
Principles." 
