The following is the 7th out of 8 Fox and Hound articles available from the Foothills Digest. It is the sixth and final collaboration with Gabriel Sherwood. I enjoyed those collaborations, because one can see that it was about our ideas relating to the Economic Development and Vitality of the area. We came to many of the same conclusions about the status of our area, but we had many different thoughts about how to achieve goals that would make things better for all.
The following article is about "How would we spend Government money to achieve our desired results of Economic, Social, and Cultural Vitality making for a better Quality of Life for the citizenry?"
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It's Spring again. The time for birth and rebirth. Time for Evolution and Revolution. Time for fresh starts and new beginnings. Gabriel and I finished up our series about Economic Development. When we discuss the Vitality of where we live, it is defined by Economics, Culture, and Politics. You just can't get away from those forces and the impact they have on our individual and collective lives.
Gabriel and I were thinking about where we wanted to take this seventh discussion. Seven's supposedly a lucky number. It is thought to be the number of perfection and completeness. Well Gabriel sent me a message and asked what we were going to talk about. I told him to choose. He was talking about the money local governments are spending trying to make things happen. He wants to talk about that and possibilities and most of all he wanted the focus to be positive.
Well, let's see how we did...
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(The Hickory Hound: Thom Shell)
In looking at the economics, culture, and politics of our community, what issue that involves all of those dynamics, is urgent and important to address, so we can advance our communities forward towards growth and well-being as we progress through this century.
What do we do about dead buildings, wasted space, and urban sprawl in our communities that creates the least intrusion in the rights of property owners, while maximizing the economic and cultural viability of our community?
In the last 15 years, we have seen our local communities have to come to grips with a transition towards a new economic reality. We saw many manufacturing facilities become defunct and close their doors. There was a negative impact on business owners, managers, and laborers that caused an overall lack of progress in our communities. In a world that constantly spins forward, our being stuck in a rut meant that we were actually falling behind. Property owners understand that maintaining property is a constant battle that costs money. Not maintaining property causes one to actually fall behind economically.
I am not new to this issue. 10 years ago, I made videos that are still on Youtube of vacant properties in our area that needed to be addressed. The Hollar Mill and Lyerly Mill buildings are two buildings that had sat empty for years that I videoed. Look at those buildings today compared to what they were then. I may not have been all on board, when it comes to how those buildings were redeveloped, but I wasn't the owner of those properties. At the end of the day, I am glad that those properties have become positive economic assets in Hickory
Most people alive today seem to think that "Big Box" stores have always existed as part of the country’s landscape, but they pretty much came into existence in the middle of the last century. They evolved when retailers decided to put most available goods on display in the store, instead of keeping the inventory sealed off in storage.
Walmart, Kmart, and Target all opened their first stores in the year 1962. Today, we take for granted the existence of these kinds of companies. These stores required huge, undivided space, with high ceilings to accommodate their voluminous inventories. They also required huge parking lots, centering their economic model around customer convenience. Their diversity of products meant that customers could one-stop shop, buying everything they needed. Their economies of scale enabled these companies to buy huge amounts of goods at lower wholesale prices and pass those savings along to customers.
With more marketplace evolution, the rise of online retail has further changed the landscape. Now customer convenience has progressed to where products are delivered to your doorstep without leaving home . Year after year, over the past generation, we have seen more and more of these "Big Box" stores go out of business, leaving communities littered with empty buildings.
How do we repurpose these buildings? In some cases, similar sized evolutionary companies are looking to fill these spots. Amazon Inc., largely responsible for the new retail reality, has decided to open some brick and mortar stores, but this type of repurposing will put a very small dent in this issue, because of the same reason that Amazon began dominating the retail sector to start with. The bottom line demand of customers are price and customer convenience.
The practical option, in many circumstances, is demolition. Many of these buildings were cheaply built with projected lifespans of 25 to 30 years. We have seen, through the "Big Box" era, where a building was demolished and the same (or a similar) retailer rebuilt in the same footprint. Demolition allows for land to be repurposed and building parts to be recycled.
The enormous size of these properties are adaptive to many functions. Such stores can be utilized for apartment housing within a mixed-use development. Aside from residential use, these shell buildings have been redeveloped into office space, civic accessibility, museums, and healthcare facilities. Many "Big Box" property owners are transforming these sites into mixed-use destinations with multiple restaurant pads, smaller shop spaces, and public plazas.
Mixed-use environments create dynamic community hubs of commerce. Restaurants, offices, and healthcare facilities can activate sidewalks and build foot-traffic. The housing is an excellent alternative in re-using a footprint, as opposed to creating more developmental sprawl.
In our communities, we have thought about ways to take our limited economic resources and leverage them to redevelop and enhance our landscape. I think it is vital to have a 21st century mindset in using public money to do what is best to improve our local ecosystem. The first step towards improving our community is to maintain the assets that already exist. The 21st Century approach means that it is imperative that we reduce, reuse, and recycle assets that are not performing as intended.
We must develop governmental policies that do not create roadblocks that hinder outside of the box ideas related to economic development. Policies and ordinances should be open to possibilities, not towards making transitions and evolution impossible to protect existing, antiquated business and cultural concepts.
In a city like Hickory, I would direct at least $10 million (total) of public funds towards developing a Mixed-Use Development node in each of the four quadrants of the city ($2.5 Million in each quadrant). The money could only be used on abandoned "Big Box" or Manufacturing properties.
The developer's proposed business plan would show the city why they need the money, how it benefits the public, and how they intend to develop their property as a centerpiece that can stimulate economic regeneration in that vicinity. The order of such projects would be ranked based upon economic enhancement of the proposed property versus the need of, and impact on, the immediate vicinity.
The above is just an overview of my thoughts. Yeah, details, details, details... but I think you can see this is how we take something negative and turn it positive.
References
Big box stores are dying. What do we do with all the bodies? - Popular Science - March 28, 2018
Innovative Uses for Vacant Big Boxes - GlobeSt.Com - December 13, 2017
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(The Fox: Gabriel Sherwood)
What would you do if you won the lottery? We have all thought about it I am sure, what we would do, how we would invest in the future. On the heels of our recent conversations about economic development in the area, let it be Hickory and surrounding communities who win. Imagine after a long process the Western Piedmont Council of Governments region … Alexander, Burke, Caldwell, and Catawba, Counties … are awarded a one hundred-million-dollar development grant. What could, what would we do with it to improve the region while being the most efficient and offering the most impact?
I advocate planning how much will be invested in transportation access, how much will be invested in communications access, and how much to help people who need a hand getting back up off the streets?We have jobs available, but we have a high poverty rates partly due partly to access to those jobs between communities that really aren’t that far from one another. Hickory’s success is inexorably linked to the success of the counties in which our city’s reach extends.Public funds are vital and should be invested to do the most good to the most people, as a rising tide lifts all.
Experience has taught me the trouble it can be getting to job centers, even if just across amunicipal line, as I regularly loaded up my old ’89 van to make the drive from Hickory’s public housing to Claremont and Conover factories to drop off neighbors. We can do that on a larger level with the capital to expand that idea as it is being spearheaded in Hickory now by certain public servants and potential employers. I would suggest we put that program on steroids and use Greenway’s existing structure to do it.We offer shift-based stops, neighborhood access far off main access lines, and along the way we ask the businesses being served to invest in the programs as well as the people gaining their access. With minimal investments by each entity being served, we could do years of good work.
8 more busses, 10vehicles that carry up to 15 people, and 10 that carry up to 8, and a few for special needs, would require an investment of a maximum of $7 million with alternative fueling options and maintenance warranties. Drivers and administration salaries would require an investment max of$4 million a year after all overhead and would put millions a year into the local economies. The plan would use busses to connect cities with hubsin each town. Then, smaller vehicles to move between communities and production centers in each county. With an investment of 25% of our purse including the operational budget, we can expand and maintain the organization for the first several years. After some time to read the need, we adjust the vehicle count according to the use and move forward to sustained viability and possibly growth to other communities.
Just as important as getting people to theproduction is getting information and education and commerce to them in their homes. There are areas of the four-county region that don’t have good cell phone reception, much less good highspeed internet access. In fact, in downtown areas in some of our towns there is no access while at the same time our students have received electronic equipment to do homework. That has caused some stress for some families, and despite our rural areas we can do something about it.
I believe investing 30 million in grants to communities and citizens to assist in gaining access would lead to a new burst of commerce and civic involvement. The funds would acquire land to build towers in partnership with providers, and negotiation between those providers and municipalities for public access would help drastically reduce the investment going forward.
Students would benefit with the access to their studies, online learning options, and general access to what’s happening in real time. Businesses benefit for obvious reasons and the increase in commerce brings more income for citizens and municipalities alike. The cycle of success often requires limited investments, but it’s the patience and willingness to invest in people that sometimes stops the wheels. I think if we treat people like the end instead of the means, the means takes care of itself as the tide goes up. This plan not only improves lives, but also provides a more proactive business culture. As James and I have spoken of many times in agreement, we have the land and the workforce but just need ways to connect them with the centers of production and commerce … and we can take a huge leap towards it with these investments.
Finally, with planning for supports for our people, we can’t forget those most in need. Holding ten for future needs, thirty million remains in our grant. There is a challenge our area faces, Hickory deals with it every day. Poverty at near 20% and the homeless that struggle around us are a reminder that without responsible growth, people get left behind. Like the opioid crisis, we can’t arrest or legislate ourselves out of this one … people require investment sometimes. I think if we continue the positive steps taken by our governmental and non-governmental forces, and adapt a more people first approach, our economic goals may lay along an easier path.
We have opportunities to take lessons from other places in how we respond to these challenges. Simple access to the internet and transportation will make a world of difference to folks that are kept from things by distance, but for those hiding in the woods around us every day … we need to think big. Thirty million dollars to buy a few unused buildings to transform into temporary housing to offer a bed, a shower, and an address, helps us offer that foothold needed to get started. With work and investment by our people, our business community, and our governments, a challenge can become a strength and a beacon of our investment in ourselves and others. That attracts businesses and younger workers that know their community will invest in them.
All these ideas feed off each other, and a system of self-supported citizens and communities is what we are all striving for. Often people trying to make a comeback are hindered by situations they don’t always control, as it’s expensive to be poor. We can help. We have our internet expansion provide application access, our transportation system gets them there on time, and we get to watch as some folks reenter the area as productive members of our communities.
With these plans we can make a real difference to a lot of people and still hold a quarter of our funds for unseen needs of the future as these programs develop, and perhaps some of it could go to grants to assist companies along the way that need space as our commerce expands. We can’t help everyone and there would be technicalities and conflicts and budgeting issues to overcome and work through, but with efficiency in mind and equality in purpose we can make a difference.
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Monday, October 28, 2019
Sunday, October 20, 2019
Hickory Hound - Hickory Daily Record - LttE October 20, 2019
The following is my Letter to the Editor that was in this morning (October 20, 2019) Hickory Daily Record. They did some minor editing, so here is the original as I sent in back on Thursday. The Letter relates to the candidates running for Hickory City Council during the 2019 municipal election cycle.
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Wash, rinse, and repeat, it’s election time in the City of Hickory. At least we see actual contests taking place for the Ward 1, 2, and 3 seats available during this cycle. But, once again we see the machinations of Hickory’s dubiously complicated electoral format with 845 votes out of 13,000 registered voters (6.5%) in those wards. 60 people voting in Ward 3 means barely 1 out of 100 voters voted in that Ward. Folks, that is proof positive of a broken system.
Even if the “Me Too” messages of the candidates running does little to inspire the electorate, more than 1 out of 100 could accidentally stumble into an election booth and cast a vote. It seems to me that this is symbolic of some sort of protest.
For years we have been told by community leaders that we all need to be positive, of like mind, just push “the Brand”, stick to the Message. That is the mindset of a Salesperson. Personally, I think we need to operate with the mindset of an Entrepreneur. That mindset is different.
Reminds me of the Breakfast Plate of Eggs and Bacon… The Chicken that provides the eggs is involved. The Hog that provides the bacon is committed.
The Entrepreneur has everything to lose. That makes them look for problems and identify solutions. Identifying problems is not being negative. It is being smart. Identifying problems is a money maker. It is figuring out what people want and need and creating it. That is how product development and evolution takes place. The Salesman can claim perfection (no problems) all day long, but reality sells or doesn’t sell products. If the salesman fails, they just move on to the next job. It isn’t their product. The Entrepreneur can lose everything. They are committed.
We live in a new economy. An economy defined by Creativity. Hickory has been Generic for far too long. We can’t copy our way to progress and prosperity. We have to have unique assets that set us apart from our competition. We need new ideas.
So, it isn’t about the message. In the end it is about your reality… your Identity. How good is your product and will the target consumers buy it?
Hey candidates, what are you selling? Do you have any fresh ideas… anything innovative? If people want Generic, they can get that at Walmart.
Tuesday, October 15, 2019
Foothills Digest - Fox & Hound Article - Winter 2019
OK, it took a week to get this out. I had work, a 35th Class Reunion, and Church Homecoming slow me down... Forgive me and I'll owe you one. This is the 6th out of 8 available. After I get these out, I intend to write something epic and relevant in the present tense, not that these aren't. The following is the sixth Fox and Hound Article from the Foothills Digest. It is the fifth article in which I collaborated with Gabriel Sherwood. The topic focuses on 'How do we connect with people to get them to move here and do business here.'
Preparation - Prepare - make (something) ready for use or consideration.
Plan - a scheme or method of acting, doing, proceeding, making, etc., developed in advance: a design or scheme of arrangement: a specific project or definite purpose:
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This is the sixth, and the finale, in this series, about economic development in our area. We have discussed vision, aligning to the marketplace, leveraging unique strengths, and inspiring people to innovate, and change. Now we finish up by articulating how we connect with and influence people to move here and do business in our area.
In summary, I think that we can all see that Gabriel and I agree on more than we disagree on when it comes to the issues of Economic Growth. I think we all understand it’s difficult to sustain a successful economy over a long period of time. We are at the mercy of external forces, including, but not limited to, the overall business cycle, culture, and politics. Our fortunes will ebb and flow with the times, but a proactive approach is necessary to ward off stagnation. This is about action versus inaction, which is completely different than the modern political paradigms deemed Conservative-Progressive.
The bottom line is that growth necessitates a clear understanding of where you want to be in the future. If you don't have goals, then what is your endgame? You’re just winging it through life. Winging it isn’t a formula for success. The Roman Philosopher Seneca said, “Luck is what happens when preparation meets opportunity.” Good fortune isn't just about being at the right place at the right time, but also about being open to and ready for new opportunities. That is what this series has been about… Preparing for Success!
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(The Hickory Hound: Thom Shell Intro)
Over the past year I have discussed, in this forum, how I believe we should economically develop our area by cultivating the most impactful demographics in the current era. We have seen a stagnation in our population growth and it is directly correlated to the lack of economic growth of the area. It is a chicken or egg situation, because it relates to jobs and job quality. Have young people left, because of the lack of good paying jobs –or- are the good paying industries not locating here, because there is a lack of qualified young working aged folks to fill the positions?
Once again, I will point to where South Carolina economic development officials said that they didn’t need pre-trained individuals for Upstate South Carolina’s BMW plant. They trained the initial workers at the plant and then later created specific technical programs to train workers for future jobs in the automotive industry.
There must be a multi-faceted approach in creating an environment to benefit from people who are in the sweet-spot of their productive working lives. People who are 40 years and younger are better able to adapt to economic change than those 40 years and older. By the time you hit 40, you are ready to settle into some form of routine. Many 40 year olds have established family structures. By and large, middle aged folks aren’t looking (and can’t afford) to change jobs on a whim or move here, there, and everywhere.
Let’s look at a good reality, presently Millennials and their younger compatriots iGen are the future of economic development and productivity in our modern world. They are now the largest demographic in the workforce and in the consumer marketplace. Success will be defined pretty simply, because “Quality of Life” correlates to economic growth, therefore our community’s overall “Quality of Life” is dependent upon growth in the largest workplace and consumer demographic. In other words, if the young people aren’t living here or moving here, then we aren’t succeeding.
I have a saying, ‘Smart people make things simple. Stupid people make things complicated.’ Think about talented athletes, chefs, artists, whatever… don’t they make whatever they are doing look easy? Think about procrastinators always doing mental gymnastics, always ‘studying’ something, always doing busy work, but never seeming to get anything accomplished… wasting time… wasting away.
As I have already discussed, local leadership has to have a plan. We have to engage all of the components of this economic equation. We must be effective listeners. We must develop our ability to be nimble about understanding and diagnosing problems and responding with effective solutions.
Develop a system that allows engagement across multiple platforms of government and private industry. Cut the red tape and have open engagement between elected officials, government administration, business leaders, and the citizenry. How do we create, acknowledge, and engage opportunity? Do you recognize opportunity when it is staring you in the face? We cannot afford to dismiss opportunity!
Growth is positive change from Time A to Time B. To direct growth, you have to have an intelligent plan about where you are at, where you want to go, and how you are going to get there. In identifying the there, you have to identify and engage your Vision, which is the first step in creating your plan. The growth we desire requires defined goals and benchmarks of where we want to be at a time certain in the future. That measurable vision defines success or failure and develops accountability.
That accountability helps motivate the drivers of the plan to make necessary adjustments (tweaks or wholesale changes) that can get to the successful goal. The thing about this exercise is that it is never over. You cannot rest on your laurels. Like one of my teachers from the past would tell us, when he caught us looking at the clock, “Time will pass… Will you?”
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(The Fox: Gabriel Sherwood Intro)
Maintaining a steady growth pattern is an important part of a healthy economy and society and to us the need for working age newcomers is critical in building on what we have going. We know steps must be taken to actively attract the people we need, but is it just the responsibility of our leaders, government and/or business, to keep us growing? As far as business health, our local leadership has done well. So much so that Hickory was just proclaimed as having the “lowest costs for business” by Forbes.
This is an honor that will perhaps bring us interest from companies looking to invest, and that is something we all celebrate, as it will bring not only dollars but perhaps more youthful talent into our communities. In addition to our drive to expand we must also have pause and measure, as our goals must be mitigated by the need for responsible growth and must be focused on increasing the value of our people as it compares with the interests of businesses we offer a home.
A USA Today article from December, 2017 covered some reasons younger professionals touted as critical to invest in a location. Jobs is always number one, but increasingly the addition of “good paying” is finding its way into the discussions. According to Data USA, Hickory’s median household income declined in recent years by 4.61%. Payscale.com says wages continued to drop another 1.1% in the 2nd quarter of 2018, and average income in Hickory is $5,ooo less than average in NC and $14,000 less than average for the nation. One reason the area is good for business is because overhead is low … and that includes payroll.
Another trend in modern families is the more educated woman being the highest earner while the man may be a tradesman or in the service industry or manufacturing. Those are couples we could use, as our trade markets need young blood to replace aging service techs and our manufacturing resurgence needs workers. But, as the Convention Center prepares for a Professional Women’s event that will bring several hundred guests, the average working woman in Hickory earns $16,000 a year less an average man. I personally can say I know a young professional woman with young children who is looking North for better pay in her field, even as it compares to cost of living.
Our last conversation included my suggestion of focusing on bringing in educators … there are college level instructors at CVCC making less than 40K a year. The teaching profession is by in large still female, and I recently heard from a former coordinator of superintendents that the teaching college at UNC Charlotte had over 900 students when he began his tenure there 9 years ago and last year when he left there were less than 100. These are professional jobs that are a backbone of local economies, and they are not heading here.
Now I don’t want this to be a pouncing session on our local drive to improve, because there is a drive to improve that includes everyone, but as the USA Today article pointed out some of the most effective means of bringing people in is bringing them home and focusing on the demographics. We have a lot of folks who have left for the cities around us and we can work hard to market the area to them along with a push for the young professional woman, and we may attract attention. But, I fear it won’t do a thing if they look for a comparable job in a different area and take a massive pay cut to come here.
We are all responsible for our community’s growth, each and everyone one of us. We entrust our leadership with the guidance of our societies and we expect responsible growth in opportunity in return, but in the end it is the civic engagement of citizens that leads any municipality or region or state. First we must teach people to give their best but also to expect better than to have basic fears that a good salary alleviates. A desperate salesperson is seen a mile away, one that is secure sells more.
That’s one thing that can get folks past the transportation issues we face here and we can create the market for better education access with and movement in the green in income growth instead of the red as we have seen for years here. Like Lenoir-Rhyne offered locals half tuition, let’s offer returning citizens a promise of tax breaks for companies that offer better than living wages. After that, we can boost and boast a great image that is backed up in the numbers that matter, and get some of our state’s best educators and public servants, and that’s a recipe for Responsible Growth to last a generation or two.
2018 Forbes Best Places for Business and Careers – October 24, 2018 - https://www.forbes.com/sites/kurtbadenhausen/2018/10/24/the-best-places-for-business-and-careers-2018-seattle-leads-the-way/#7062ac47447e
Millennials to small cities: Ready or not here we come! – USA Today - November 5, 2017 -
https://www.usatoday.com/story/news/2017/11/05/millennials-small-cities-ready-not-here-we-come/830955001/
https://datausa.io/profile/geo/hickory-nc/#intro
https://www.payscale.com/research/US/Location=Hickory-NC/Salary
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Thom's response to Gabriel
Gabriel, in the overall outlook of the Forbes’ article ‘2018 Best Places for Business and Careers’ that you allude to, we see that Raleigh (#2), Charlotte (#5), Durham (#13), and Asheville (#15) did extremely well, but Hickory was listed as #172 out of 200 cities in that list. That fits in with our second article (Winter 2018) where I address what I surmise to be the Tale of Two States here in North Carolina.
I am glad that you are encouraged by the North Carolina’s positioning in the marketplace as a whole and I am also hopeful that we are taking some steps in our region to move forward. I would however like to see an emphasis placed upon the more Rural and Suburban areas of the State that have been hurt by the rapidly changing dynamics of modern industry and the post modern “free-trade” economy.
I agree with what you state about young people wanting good paying jobs. On my blog, though I haven’t really added articles over the past year, in the past I have constantly talked about the underemployment issue and this “Low Cost of doing Business” certainly seems to correlate to that. Hickory, in that 2018 Forbes list that you interjected into this conversation, ranks #1 in the nation as the least expensive place to do business. 21 places in the bottom 50 of that overall list rank as the cheapest places to do business. Maybe it’s less expensive, because there’s a lot less economic activity taking place here than in the more successful cities in that list.
I do agree that people need to take charge and be leaders, but that doesn’t forego those who have asked and are being paid to assume the forefront of leadership positions in our communities. In the end, they are in charge of the decision making process, including setting policies and making plans for the direction of the community. We can only make suggestions and hold them accountable to a certain extent. They are in charge!
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Gabriel's response to Thom
As often is the case, we agree on much. A multi-faceted plan is needed and we have some facets of it in place or on the way and it must be strategic and a decade ahead of itself. Over the past year we have agreed that we need to work on access and transportation options to connect us to the economic powerhouse of the Charlotte market. The 16 extension is well underway and the double lane access will decrease travel time between the ever expanding suburbs of Charlotte and our area. The expansion of 150 across the bridge into the Mooresville area as part of the development of the Eastern parts of Catawba County I think would be a great investment in having some of Mecklenburg's commerce and professionals jumping the lake.
More land at a lower price in a growing area is an attraction we can utilize with proper marketing and valuation of our attributes, while at the same time checking several boxes on our goal sheet for responsible growth.
We have spoken on inclusion of all citizens and municipalities and businesses and NGO’s, as the more ideas at the table mean a better chance for good government and working solutions. We have the Hickory Young Professionals, who just celebrated their 10th Anniversary, working to engage the younger population alongside other similar service and networking organizations across the area. The Rotary Club of Hickory is currently hosting Students of Distinction from each high school in the area who have shown leadership skills and merit in study and extracurricular activities. We should collectively be hoping to keep in touch and either keep these students at CVCC or LR or the App State Campus, or work to lead them back to the area after their education elsewhere.
Reaching out and engaging people where they are now while showing them a vision of where they could be with us can be a path to our goals, and with the right coordination and direction we can see great success.
We also have spoken about how we can utilize our attributes, and one we already see being used is … well, the Sun above us. How much could we save our taxpayers, our business owners, our citizens, if we simply put a couple solar panels on every government building, business, or home that can accomodate one, in the area? We have great recycling systems and expanding public parks and services, we are close to nature and the city, we have access to an international airport, and we have local flare and food options, which are all good additions to our regional brochure … but we would make the national news with a commitment like that.
If we can save money by using the free fusion reactor we circle and allocate that to offering incentives for companies that agree to provide above average salaries and wages in exchange for forward thinking leadership and investment, I believe we will see a good return.
Know your enemy and know yourself and you will never know defeat in a hundred battles” - Sun Tzu. You are correct that dawdlers will dawdle and complainers will offer plenty observations with few solutions behind them, but those who research the root of a problem and have the courage and acumen to act decisively will often be successful. Fortune favors the bold “they” also say and if we are bold in our requirement for our people to be valued and seen as an investment, if we expand access while reaching out to engage the people we want to be here with us with what we can offer … those who care about such things will notice.
People who care about such things care about responsible growth.
Preparation - Prepare - make (something) ready for use or consideration.
Plan - a scheme or method of acting, doing, proceeding, making, etc., developed in advance: a design or scheme of arrangement: a specific project or definite purpose:
---------------------------
This is the sixth, and the finale, in this series, about economic development in our area. We have discussed vision, aligning to the marketplace, leveraging unique strengths, and inspiring people to innovate, and change. Now we finish up by articulating how we connect with and influence people to move here and do business in our area.
In summary, I think that we can all see that Gabriel and I agree on more than we disagree on when it comes to the issues of Economic Growth. I think we all understand it’s difficult to sustain a successful economy over a long period of time. We are at the mercy of external forces, including, but not limited to, the overall business cycle, culture, and politics. Our fortunes will ebb and flow with the times, but a proactive approach is necessary to ward off stagnation. This is about action versus inaction, which is completely different than the modern political paradigms deemed Conservative-Progressive.
The bottom line is that growth necessitates a clear understanding of where you want to be in the future. If you don't have goals, then what is your endgame? You’re just winging it through life. Winging it isn’t a formula for success. The Roman Philosopher Seneca said, “Luck is what happens when preparation meets opportunity.” Good fortune isn't just about being at the right place at the right time, but also about being open to and ready for new opportunities. That is what this series has been about… Preparing for Success!
----------------------------
(The Hickory Hound: Thom Shell Intro)
Over the past year I have discussed, in this forum, how I believe we should economically develop our area by cultivating the most impactful demographics in the current era. We have seen a stagnation in our population growth and it is directly correlated to the lack of economic growth of the area. It is a chicken or egg situation, because it relates to jobs and job quality. Have young people left, because of the lack of good paying jobs –or- are the good paying industries not locating here, because there is a lack of qualified young working aged folks to fill the positions?
Once again, I will point to where South Carolina economic development officials said that they didn’t need pre-trained individuals for Upstate South Carolina’s BMW plant. They trained the initial workers at the plant and then later created specific technical programs to train workers for future jobs in the automotive industry.
There must be a multi-faceted approach in creating an environment to benefit from people who are in the sweet-spot of their productive working lives. People who are 40 years and younger are better able to adapt to economic change than those 40 years and older. By the time you hit 40, you are ready to settle into some form of routine. Many 40 year olds have established family structures. By and large, middle aged folks aren’t looking (and can’t afford) to change jobs on a whim or move here, there, and everywhere.
Let’s look at a good reality, presently Millennials and their younger compatriots iGen are the future of economic development and productivity in our modern world. They are now the largest demographic in the workforce and in the consumer marketplace. Success will be defined pretty simply, because “Quality of Life” correlates to economic growth, therefore our community’s overall “Quality of Life” is dependent upon growth in the largest workplace and consumer demographic. In other words, if the young people aren’t living here or moving here, then we aren’t succeeding.
I have a saying, ‘Smart people make things simple. Stupid people make things complicated.’ Think about talented athletes, chefs, artists, whatever… don’t they make whatever they are doing look easy? Think about procrastinators always doing mental gymnastics, always ‘studying’ something, always doing busy work, but never seeming to get anything accomplished… wasting time… wasting away.
As I have already discussed, local leadership has to have a plan. We have to engage all of the components of this economic equation. We must be effective listeners. We must develop our ability to be nimble about understanding and diagnosing problems and responding with effective solutions.
Develop a system that allows engagement across multiple platforms of government and private industry. Cut the red tape and have open engagement between elected officials, government administration, business leaders, and the citizenry. How do we create, acknowledge, and engage opportunity? Do you recognize opportunity when it is staring you in the face? We cannot afford to dismiss opportunity!
Growth is positive change from Time A to Time B. To direct growth, you have to have an intelligent plan about where you are at, where you want to go, and how you are going to get there. In identifying the there, you have to identify and engage your Vision, which is the first step in creating your plan. The growth we desire requires defined goals and benchmarks of where we want to be at a time certain in the future. That measurable vision defines success or failure and develops accountability.
That accountability helps motivate the drivers of the plan to make necessary adjustments (tweaks or wholesale changes) that can get to the successful goal. The thing about this exercise is that it is never over. You cannot rest on your laurels. Like one of my teachers from the past would tell us, when he caught us looking at the clock, “Time will pass… Will you?”
----------------------------
(The Fox: Gabriel Sherwood Intro)
Maintaining a steady growth pattern is an important part of a healthy economy and society and to us the need for working age newcomers is critical in building on what we have going. We know steps must be taken to actively attract the people we need, but is it just the responsibility of our leaders, government and/or business, to keep us growing? As far as business health, our local leadership has done well. So much so that Hickory was just proclaimed as having the “lowest costs for business” by Forbes.
This is an honor that will perhaps bring us interest from companies looking to invest, and that is something we all celebrate, as it will bring not only dollars but perhaps more youthful talent into our communities. In addition to our drive to expand we must also have pause and measure, as our goals must be mitigated by the need for responsible growth and must be focused on increasing the value of our people as it compares with the interests of businesses we offer a home.
A USA Today article from December, 2017 covered some reasons younger professionals touted as critical to invest in a location. Jobs is always number one, but increasingly the addition of “good paying” is finding its way into the discussions. According to Data USA, Hickory’s median household income declined in recent years by 4.61%. Payscale.com says wages continued to drop another 1.1% in the 2nd quarter of 2018, and average income in Hickory is $5,ooo less than average in NC and $14,000 less than average for the nation. One reason the area is good for business is because overhead is low … and that includes payroll.
Another trend in modern families is the more educated woman being the highest earner while the man may be a tradesman or in the service industry or manufacturing. Those are couples we could use, as our trade markets need young blood to replace aging service techs and our manufacturing resurgence needs workers. But, as the Convention Center prepares for a Professional Women’s event that will bring several hundred guests, the average working woman in Hickory earns $16,000 a year less an average man. I personally can say I know a young professional woman with young children who is looking North for better pay in her field, even as it compares to cost of living.
Our last conversation included my suggestion of focusing on bringing in educators … there are college level instructors at CVCC making less than 40K a year. The teaching profession is by in large still female, and I recently heard from a former coordinator of superintendents that the teaching college at UNC Charlotte had over 900 students when he began his tenure there 9 years ago and last year when he left there were less than 100. These are professional jobs that are a backbone of local economies, and they are not heading here.
Now I don’t want this to be a pouncing session on our local drive to improve, because there is a drive to improve that includes everyone, but as the USA Today article pointed out some of the most effective means of bringing people in is bringing them home and focusing on the demographics. We have a lot of folks who have left for the cities around us and we can work hard to market the area to them along with a push for the young professional woman, and we may attract attention. But, I fear it won’t do a thing if they look for a comparable job in a different area and take a massive pay cut to come here.
We are all responsible for our community’s growth, each and everyone one of us. We entrust our leadership with the guidance of our societies and we expect responsible growth in opportunity in return, but in the end it is the civic engagement of citizens that leads any municipality or region or state. First we must teach people to give their best but also to expect better than to have basic fears that a good salary alleviates. A desperate salesperson is seen a mile away, one that is secure sells more.
That’s one thing that can get folks past the transportation issues we face here and we can create the market for better education access with and movement in the green in income growth instead of the red as we have seen for years here. Like Lenoir-Rhyne offered locals half tuition, let’s offer returning citizens a promise of tax breaks for companies that offer better than living wages. After that, we can boost and boast a great image that is backed up in the numbers that matter, and get some of our state’s best educators and public servants, and that’s a recipe for Responsible Growth to last a generation or two.
2018 Forbes Best Places for Business and Careers – October 24, 2018 - https://www.forbes.com/sites/kurtbadenhausen/2018/10/24/the-best-places-for-business-and-careers-2018-seattle-leads-the-way/#7062ac47447e
Millennials to small cities: Ready or not here we come! – USA Today - November 5, 2017 -
https://www.usatoday.com/story/news/2017/11/05/millennials-small-cities-ready-not-here-we-come/830955001/
https://datausa.io/profile/geo/hickory-nc/#intro
https://www.payscale.com/research/US/Location=Hickory-NC/Salary
----------------------------
Thom's response to Gabriel
Gabriel, in the overall outlook of the Forbes’ article ‘2018 Best Places for Business and Careers’ that you allude to, we see that Raleigh (#2), Charlotte (#5), Durham (#13), and Asheville (#15) did extremely well, but Hickory was listed as #172 out of 200 cities in that list. That fits in with our second article (Winter 2018) where I address what I surmise to be the Tale of Two States here in North Carolina.
I am glad that you are encouraged by the North Carolina’s positioning in the marketplace as a whole and I am also hopeful that we are taking some steps in our region to move forward. I would however like to see an emphasis placed upon the more Rural and Suburban areas of the State that have been hurt by the rapidly changing dynamics of modern industry and the post modern “free-trade” economy.
I agree with what you state about young people wanting good paying jobs. On my blog, though I haven’t really added articles over the past year, in the past I have constantly talked about the underemployment issue and this “Low Cost of doing Business” certainly seems to correlate to that. Hickory, in that 2018 Forbes list that you interjected into this conversation, ranks #1 in the nation as the least expensive place to do business. 21 places in the bottom 50 of that overall list rank as the cheapest places to do business. Maybe it’s less expensive, because there’s a lot less economic activity taking place here than in the more successful cities in that list.
I do agree that people need to take charge and be leaders, but that doesn’t forego those who have asked and are being paid to assume the forefront of leadership positions in our communities. In the end, they are in charge of the decision making process, including setting policies and making plans for the direction of the community. We can only make suggestions and hold them accountable to a certain extent. They are in charge!
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Gabriel's response to Thom
As often is the case, we agree on much. A multi-faceted plan is needed and we have some facets of it in place or on the way and it must be strategic and a decade ahead of itself. Over the past year we have agreed that we need to work on access and transportation options to connect us to the economic powerhouse of the Charlotte market. The 16 extension is well underway and the double lane access will decrease travel time between the ever expanding suburbs of Charlotte and our area. The expansion of 150 across the bridge into the Mooresville area as part of the development of the Eastern parts of Catawba County I think would be a great investment in having some of Mecklenburg's commerce and professionals jumping the lake.
More land at a lower price in a growing area is an attraction we can utilize with proper marketing and valuation of our attributes, while at the same time checking several boxes on our goal sheet for responsible growth.
We have spoken on inclusion of all citizens and municipalities and businesses and NGO’s, as the more ideas at the table mean a better chance for good government and working solutions. We have the Hickory Young Professionals, who just celebrated their 10th Anniversary, working to engage the younger population alongside other similar service and networking organizations across the area. The Rotary Club of Hickory is currently hosting Students of Distinction from each high school in the area who have shown leadership skills and merit in study and extracurricular activities. We should collectively be hoping to keep in touch and either keep these students at CVCC or LR or the App State Campus, or work to lead them back to the area after their education elsewhere.
Reaching out and engaging people where they are now while showing them a vision of where they could be with us can be a path to our goals, and with the right coordination and direction we can see great success.
We also have spoken about how we can utilize our attributes, and one we already see being used is … well, the Sun above us. How much could we save our taxpayers, our business owners, our citizens, if we simply put a couple solar panels on every government building, business, or home that can accomodate one, in the area? We have great recycling systems and expanding public parks and services, we are close to nature and the city, we have access to an international airport, and we have local flare and food options, which are all good additions to our regional brochure … but we would make the national news with a commitment like that.
If we can save money by using the free fusion reactor we circle and allocate that to offering incentives for companies that agree to provide above average salaries and wages in exchange for forward thinking leadership and investment, I believe we will see a good return.
Know your enemy and know yourself and you will never know defeat in a hundred battles” - Sun Tzu. You are correct that dawdlers will dawdle and complainers will offer plenty observations with few solutions behind them, but those who research the root of a problem and have the courage and acumen to act decisively will often be successful. Fortune favors the bold “they” also say and if we are bold in our requirement for our people to be valued and seen as an investment, if we expand access while reaching out to engage the people we want to be here with us with what we can offer … those who care about such things will notice.
People who care about such things care about responsible growth.
Tuesday, October 8, 2019
Foothills Digest - Fox & Hound Article - Fall 2018
I haven't gotten these out as fast as I had hoped. I will have the next one out in short order. We are now past halfway on the ones that are available. The following is the fifth Fox and Hound
Article from
the Foothills Digest. It is the fourth article in which I collaborated
with Gabriel Sherwood. The topic focuses on 'How do we Inspire our community and set it up in the best position possible to grow. Like I said, this is a marketplace and it is a 3D multilevel Chess
Board. There should be a plan for community development and from that there will be desired outcomes and with that there will be intended and unintended consequences. There will be the seen and the unseen. How do we embrace change and inspire innovation? How do we bring back the Entrepreneurial spirit that our community was founded and built upon? We need to have a broad scope and we must set ourselves up to be in an adaptable position in an ever changing landscape.
----------------------------
So, this is the fifth edition of the Foothills Digest and the Fox and the Hound. Thank You Carmen for affording us a platform for a discussion of issues that are vital to our area. This initial thread has been related to fostering Economic Growth in our area. We have discussed Plan Creation and Implementation, Vision, the Marketplace, and Leveraging Unique strengths. Now we discuss how to attract Millennials to our community, because we have lost many from the younger generation and they are vital to the growth of our region’s communities. How do we inspire innovation and change?
----------------------------
(The Hickory Hound: Thom Shell Intro)
In my last article, I discussed the nature of the Millennial generation and how they have become the most vital cog in the American Economic Engine, as the largest demographic representative in terms of labor and consumption. Millennials have moved to major metropolitan areas, because that is where they can earn the most money and enjoy life. Statistical information shows that Millennials earn their highest income versus cost of living (1) in the San Francisco Metropolitan area. Raleigh is ranked #14 on the list.
In this era of constant change, the major metropolitan areas in our nation have been more resilient in dealing with economic upheaval, because they have larger economies of scale. Where a smaller community may be driven by one major industry, these larger metro areas are much more economically diverse with multiple major businesses in multiple business sectors. The loss of a major business in a large metro can certainly cause stress, but it isn’t going to break the community. An individual living in a large community, who finds themselves displaced, can more easily find a job within that community; whereas in a smaller community, they might just have to move.
It used to be that almost all children would earn more than their parents had at any particular age. Today, that number is around 50 percent (2). Much of the economic flux we have faced in our country can be attributed to what the 20th century Austrian Economist Joseph Schumpeter (3), one of the founding theorists on Entrepreneurship, termed Creative Destruction. Creative Destruction occurs when innovation deconstructs long-standing arrangements and frees resources to be deployed elsewhere. Schumpeter saw innovation as the driving force of the marketplace through Capitalism. He believed that the innovation and technological change of a nation comes from its entrepreneurs, or “wild spirits.” Innovation is progress driven by competition.
In talking about Economic Regeneration, “Change” is at the forefront of economic reality. The economy on every level of human existence has always evolved. Whereas, in the past, it could take years for things to change, now our economy changes drastically from day-to-day. We must embrace change and learn how to operate and thrive in such an environment. The alternative? Embracing stagnation... No thanks!
What Schumpeter was getting at relates to creativity. We are living in an age that is defined by creativity, much more so than the preceding Industrial Age. Our present economy has been defined as a “Creative Economy.” Millennials, as a “Free Spirited” generation, like to define themselves by their creativity, being different, and having unique personalities. They want help implementing creative ideas and recognition for successes. Companies that facilitate this way of thinking will be the most successful. We have to know that this creative capacity can be used to a community’s advantage. This mindset benefits us all! How can we cultivate this energy?
Young people want careers and want their work to have meaning. They want a better world and to associate with good business practices. Most don’t want to waste their lives in a cubicle in an organization that is deeply resistant to change. There are so many career options for the best and the brightest. And isn’t “Best and Brightest” what you want in a community?
The answer to community growth is to attract Millennials. How we do this is pretty much up for debate. Attracting this creative generation will lead to the “Wild Spirit” of creativity, innovation, and entrepreneurship and that should be the endgame.
(1) The 25 places where millennials make the most money - The Exponent (Purdue University) – July 18, 2018
(2) The Fading American Dream - Trends in Absolute Income Mobility Since 1940 – Equality of Opportunity Project – February 2017
(3) Innovation and Entrepreneurship – The Austrian Economist Joseph A. Schumpeter – The Austrian Embassy – March 27, 2015
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(The Fox: Gabriel Sherwood Intro)
Millennials will overtake the Boomers as the most populous generation in 2019 we hear, with 73 million citizens falling into that age range (1). Though they only outnumber Generation X by 6 million or so, youth and even slightly superior numbers will allow the Millennials to shape the economic and cultural landscape of our nation for the next 50 years. How well regions recruit younger industries and the citizens that power them will dictate growth potential as all involved.
Luckily, we have some forward thinking leadership locally and some of our plans have been focused on ensuring the Foothills and Western Piedmont Regions get our share of what will be an expanding and enduring economic base. Good things are happening around us, and positive changes have been made to infrastructure and access. If we are to maximize on our Millennial marketability, though, then must continue to look for ideas to support the younger citizens that attract the younger businesses. We have advantages that only need minor adjustments and investments, and some inspiration to change a mindset, to generate opportunity for responsible growth.
Millennials are trending towards public and shared forms of transportation, and though people of all ages are driving less, right now over 30% of 19 year olds in the US don’t have licenses to drive. This is a new reality and will drive certain folks to the more developed regions by necessity, so how can we inspire the needed changes in transit options? What helped create and facilitate the car culture that swept the US in the latter half of the 20th Century?
Millennials are also steering the markets towards more sustainable lifestyles and socially equitable opportunities. By 2025 they could comprise over 70% of the workforce and polling within the generation shows 87% would be loyal to companies that are socially and economically diverse and responsible (2). So, how do we market ourselves as socially and economically responsible and how do we capitalize on our diversity? And what has helped finance many of the innovations that make our lives cleaner and greener each day?
The answer to both: public investment and shared innovation with the private sector brought about much of the amenities of the modern world, and we have the infrastructure and economic capacity to continue to do it here. The Eisenhower Administration used huge tax rates to fund the interconnecting of our nation with the highway system and created millions of recurring jobs nationally, while reshaping our culture for two generations. Locally we can use that example and invest liberally in the expansion of the Greenway system and spread a wider net of low cost transportation access with a responsible brand.
The 50’s and 60’s also saw one of the largest expansions of public education in Human history, which provided a great deal of the Human capital and intellectual enterprise among the Boomers and Generation X, as well as educated tradespeople in many fields. Now, we need the same locally for Millennial marketing … and we have an opportunity to get back to that with the K64 approach currently making its way to activity at CVCC and elsewhere around us (3). It is a development model that focuses on the pathway from early education all the way to retirement after years of continuing education.
You get what you pay for in most places and investment in a nation's own citizens rarely bears a loss. This is one reason Forbes ranked the US the 12th best nation for business, while 9 of the first 11 are Democratic Socialist nations that invest far more in infrastructure and education while regulating the extremes of the Capitalist system that some of them invented to ensure equitable access and opportunity to all, and the other two are Communist Capitalists we shouldn’t consider as great role models (4).
The United States will never be these places, and our ways of doing things must recognize the diversity of our vast land and the input of all our people … but no matter where you go if you have eclectically educated citizens with a way to get to work you are going to have the engine to drive innovation and help to inspire change in the private sector. The better we are at those things in our region, the more successful we will be at our recruiting and retention goals for companies and people of the next generation.
1. Millennials expected to overtake Baby Boomers as America’s largest generation - Pew Research - March 1st, 2018
2. The Millennial Consumer: A Driving Force for Corporate Sustainability - Ecosphere - January 2, 2018
3. K-64 Learning Homepage - 2017
4. Best Countries for Business in 2017 - Forbes - January, 2018
----------------------------
Gabriel response to Thom
Like the whale oil hunters of old, miners of coal in the US now, and anyone who’s job can be done by a robot over the next decades, the old giving way to the new is in overdrive for post industrial economies. With processors changing every six months, and new phones out nearly yearly, our commercialism is often as fickle as our pop-culture. What needs can we count on to be consistently relevant in the next 50 years, though, and what kind of jobs should we be looking for if we want our kids to make more than us right here?
Other than jobs in education, which offer a redundant investment in a local economy, and which millennials are attracted to if funded, 3 of the top 5 “Best Jobs for Millennials” involve computer software design, web development, and systems analysis (1). All of these are creative, all of these are potentially generational industries, and they can all be recruited if we can show them we have the people and infrastructure to support their needs.
We know all those industries from local experience already, and we know we have what they need, but there are social considerations that can hamper creativity as well as the desire for workers and industries to join us. Extremes in social issues turn away Millennials, and areas dominated by certain views will inexorably filter those energies and outlooks into the “Footloose Syndrome” for the young of the area and others who may want to join us.
There is a lesson in the numbers of the last presidential contest. A popular meme we see on social media references the 2,649 counties won by President Trump as opposed to the 503 counties won by Secretary Clinton. Those 503 counties that leaned more Liberal than Conservative held 64% of our economic output in 2016 (2).
If we really are prepared to work for economic progress, and towards a “Wild Spirit” of Creativity from a younger generation that holds progressive ideas, then we might have to let some of our region’s aging political and social mindsets be changed out in the next installment of creative destruction this November.
1 - US News and World Report - The 10 Best Jobs for Millenials - October, 2017
2. Brookings Institute - High Output America vs. Low Output America - November, 2016
Answer to your question:
Responsible growth to me includes understanding the needed balance between the public and private, not allowing extreme inequalities to form between neighborhoods and/or social classes, understanding that all people and roles are needed in a healthy economy and that all should be respected, and that there are some sectors of our economy that must be understood to be investments in the future rather than profit sources now.
In his book: “Capitalism, Socialism, and Democracy” Schumpeter also wrote of his agreement with Marx that Capitalism would collapse, but instead of Marx’s Proletarian Revolution, Schumpeter asserted that highly successful Capitalism would eventually give way to Corporatism and the diminishment of the individual based business in favor of monopolies.
In his vision the voting majorities would have no choice but to vote themselves into Socialism in order to survive income and class inequality that the market won’t regulate alone. And here with a third of the nation ready to take us back to 90% tax rates and hamper innovation and creativity while another third are following a Neo-Fascist whose policies are driving us further towards state corporatism, it’s easy to see why Schumpeter is seen as an Einstein of Economics.
To prevent this we must invest. In addition to recruiting tech jobs and continuing to modernize our manufacturing sector, we can find ourselves a beacon for young talent whose job it is to inspire the youth of our region and state. We have a wide base of education professionals here, with many of them aging now and in need of good replacements.
I say if we want to attract Millennials with jobs that matter; with jobs that will offer a base of economic stability to them and our area over a career; with jobs in which it is partly the purpose to cultivate the creativity of our area … educator rings a bell.
The NC General Assembly isn’t helping us in that regard because I know young teachers who have left for Texas to get paid, taking our future creativity with them. We can get some back though, or recruit others, because another way to get young people to stay is to let them see they have a voice in their community.
This election cycle there is change to be sure, as candidates driven by Millennial issues have risen to run from all walks of life in our county and state elections.
Make sure your voice is heard in November everyone ...
----------------------------
Thom’s response to Gabriel
Gabriel, I agree with much of what you say, but some of your conclusions show purely political biases. Trump isn’t a neo-fascist. To the point, because it has little to do with the thread of this conversation, Conservatism has plenty of support among Millennials. Time Magazine, not exactly a bastion of conservatism, points this out in an article – “Young Americans Are Actually Not Becoming More Progressive” – August 22, 2017 – Jean M. Twenge. The article delves into the political nature of today’s younger generations… “Individualism has also led iGen and Millennials to favor one thing above all else in politicians: Authenticity. Individualism promotes “come as you are” and “just be yourself,” and iGen’ers want their candidates to be — or at least seem — unwavering in their personal beliefs.””
As we both agree, technological advances are coming rapidly. Technology is second nature to the Millennials and the following “iGeneration (iGen)” -- named for their use of iPhones and interfacing with technology. According to Public Relations Society of America, the Great Recession taught IGen to be independent, and has led to an entrepreneurial desire, after seeing their parents and older siblings struggle in the workforce. (1)
I agree with you on the issues of social acceptance of the young person’s mindset. I have a friend who is in his 70s and works for a local fabric design firm in our area. The company has a staff that consists of many Millennial aged women. These young women are choosing to live outside the area, many in Asheville. They say they roll up the streets at night in Hickory and they want to enjoy some nightlife.
So what are issues I think we can agree on that the younger generations are facing that need our societal focus and attention? 1) Burdensome college debt 2) Underemployment for America’s most educated generation 3) Unable to afford housing independence 4) Financial Fragility 5) Fewer and fewer Millennials are becoming Entrepreneurs 6) Mental Stress and Depression. (2)
Younger people have a desire to be entrepreneurs, but their financial fragility, due to college debt and not having enough income to save, is limiting their capacity to own businesses. If we as a community can come up with ways to help these young people move forward with some of their dreams and to get established, then we can get some of them live here instead of the big cities. That will lead to growth as those seeds are cultivated into the future stakeholders and cornerstones of our community.
(1) Move Over Millennials, Here Comes Generation Z: Understanding the 'New Realists' Who Are Building the Future". Public Relations Tactics. Public Relations Society of America. 12/10/2015
(2) The 10 Most Serious Problems Faced By Millennials – BestWork Inc.
----------------------------
So, this is the fifth edition of the Foothills Digest and the Fox and the Hound. Thank You Carmen for affording us a platform for a discussion of issues that are vital to our area. This initial thread has been related to fostering Economic Growth in our area. We have discussed Plan Creation and Implementation, Vision, the Marketplace, and Leveraging Unique strengths. Now we discuss how to attract Millennials to our community, because we have lost many from the younger generation and they are vital to the growth of our region’s communities. How do we inspire innovation and change?
----------------------------
(The Hickory Hound: Thom Shell Intro)
In my last article, I discussed the nature of the Millennial generation and how they have become the most vital cog in the American Economic Engine, as the largest demographic representative in terms of labor and consumption. Millennials have moved to major metropolitan areas, because that is where they can earn the most money and enjoy life. Statistical information shows that Millennials earn their highest income versus cost of living (1) in the San Francisco Metropolitan area. Raleigh is ranked #14 on the list.
In this era of constant change, the major metropolitan areas in our nation have been more resilient in dealing with economic upheaval, because they have larger economies of scale. Where a smaller community may be driven by one major industry, these larger metro areas are much more economically diverse with multiple major businesses in multiple business sectors. The loss of a major business in a large metro can certainly cause stress, but it isn’t going to break the community. An individual living in a large community, who finds themselves displaced, can more easily find a job within that community; whereas in a smaller community, they might just have to move.
It used to be that almost all children would earn more than their parents had at any particular age. Today, that number is around 50 percent (2). Much of the economic flux we have faced in our country can be attributed to what the 20th century Austrian Economist Joseph Schumpeter (3), one of the founding theorists on Entrepreneurship, termed Creative Destruction. Creative Destruction occurs when innovation deconstructs long-standing arrangements and frees resources to be deployed elsewhere. Schumpeter saw innovation as the driving force of the marketplace through Capitalism. He believed that the innovation and technological change of a nation comes from its entrepreneurs, or “wild spirits.” Innovation is progress driven by competition.
In talking about Economic Regeneration, “Change” is at the forefront of economic reality. The economy on every level of human existence has always evolved. Whereas, in the past, it could take years for things to change, now our economy changes drastically from day-to-day. We must embrace change and learn how to operate and thrive in such an environment. The alternative? Embracing stagnation... No thanks!
What Schumpeter was getting at relates to creativity. We are living in an age that is defined by creativity, much more so than the preceding Industrial Age. Our present economy has been defined as a “Creative Economy.” Millennials, as a “Free Spirited” generation, like to define themselves by their creativity, being different, and having unique personalities. They want help implementing creative ideas and recognition for successes. Companies that facilitate this way of thinking will be the most successful. We have to know that this creative capacity can be used to a community’s advantage. This mindset benefits us all! How can we cultivate this energy?
Young people want careers and want their work to have meaning. They want a better world and to associate with good business practices. Most don’t want to waste their lives in a cubicle in an organization that is deeply resistant to change. There are so many career options for the best and the brightest. And isn’t “Best and Brightest” what you want in a community?
The answer to community growth is to attract Millennials. How we do this is pretty much up for debate. Attracting this creative generation will lead to the “Wild Spirit” of creativity, innovation, and entrepreneurship and that should be the endgame.
(1) The 25 places where millennials make the most money - The Exponent (Purdue University) – July 18, 2018
(2) The Fading American Dream - Trends in Absolute Income Mobility Since 1940 – Equality of Opportunity Project – February 2017
(3) Innovation and Entrepreneurship – The Austrian Economist Joseph A. Schumpeter – The Austrian Embassy – March 27, 2015
----------------------------
(The Fox: Gabriel Sherwood Intro)
Millennials will overtake the Boomers as the most populous generation in 2019 we hear, with 73 million citizens falling into that age range (1). Though they only outnumber Generation X by 6 million or so, youth and even slightly superior numbers will allow the Millennials to shape the economic and cultural landscape of our nation for the next 50 years. How well regions recruit younger industries and the citizens that power them will dictate growth potential as all involved.
Luckily, we have some forward thinking leadership locally and some of our plans have been focused on ensuring the Foothills and Western Piedmont Regions get our share of what will be an expanding and enduring economic base. Good things are happening around us, and positive changes have been made to infrastructure and access. If we are to maximize on our Millennial marketability, though, then must continue to look for ideas to support the younger citizens that attract the younger businesses. We have advantages that only need minor adjustments and investments, and some inspiration to change a mindset, to generate opportunity for responsible growth.
Millennials are trending towards public and shared forms of transportation, and though people of all ages are driving less, right now over 30% of 19 year olds in the US don’t have licenses to drive. This is a new reality and will drive certain folks to the more developed regions by necessity, so how can we inspire the needed changes in transit options? What helped create and facilitate the car culture that swept the US in the latter half of the 20th Century?
Millennials are also steering the markets towards more sustainable lifestyles and socially equitable opportunities. By 2025 they could comprise over 70% of the workforce and polling within the generation shows 87% would be loyal to companies that are socially and economically diverse and responsible (2). So, how do we market ourselves as socially and economically responsible and how do we capitalize on our diversity? And what has helped finance many of the innovations that make our lives cleaner and greener each day?
The answer to both: public investment and shared innovation with the private sector brought about much of the amenities of the modern world, and we have the infrastructure and economic capacity to continue to do it here. The Eisenhower Administration used huge tax rates to fund the interconnecting of our nation with the highway system and created millions of recurring jobs nationally, while reshaping our culture for two generations. Locally we can use that example and invest liberally in the expansion of the Greenway system and spread a wider net of low cost transportation access with a responsible brand.
The 50’s and 60’s also saw one of the largest expansions of public education in Human history, which provided a great deal of the Human capital and intellectual enterprise among the Boomers and Generation X, as well as educated tradespeople in many fields. Now, we need the same locally for Millennial marketing … and we have an opportunity to get back to that with the K64 approach currently making its way to activity at CVCC and elsewhere around us (3). It is a development model that focuses on the pathway from early education all the way to retirement after years of continuing education.
You get what you pay for in most places and investment in a nation's own citizens rarely bears a loss. This is one reason Forbes ranked the US the 12th best nation for business, while 9 of the first 11 are Democratic Socialist nations that invest far more in infrastructure and education while regulating the extremes of the Capitalist system that some of them invented to ensure equitable access and opportunity to all, and the other two are Communist Capitalists we shouldn’t consider as great role models (4).
The United States will never be these places, and our ways of doing things must recognize the diversity of our vast land and the input of all our people … but no matter where you go if you have eclectically educated citizens with a way to get to work you are going to have the engine to drive innovation and help to inspire change in the private sector. The better we are at those things in our region, the more successful we will be at our recruiting and retention goals for companies and people of the next generation.
1. Millennials expected to overtake Baby Boomers as America’s largest generation - Pew Research - March 1st, 2018
2. The Millennial Consumer: A Driving Force for Corporate Sustainability - Ecosphere - January 2, 2018
3. K-64 Learning Homepage - 2017
4. Best Countries for Business in 2017 - Forbes - January, 2018
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Gabriel response to Thom
Like the whale oil hunters of old, miners of coal in the US now, and anyone who’s job can be done by a robot over the next decades, the old giving way to the new is in overdrive for post industrial economies. With processors changing every six months, and new phones out nearly yearly, our commercialism is often as fickle as our pop-culture. What needs can we count on to be consistently relevant in the next 50 years, though, and what kind of jobs should we be looking for if we want our kids to make more than us right here?
Other than jobs in education, which offer a redundant investment in a local economy, and which millennials are attracted to if funded, 3 of the top 5 “Best Jobs for Millennials” involve computer software design, web development, and systems analysis (1). All of these are creative, all of these are potentially generational industries, and they can all be recruited if we can show them we have the people and infrastructure to support their needs.
We know all those industries from local experience already, and we know we have what they need, but there are social considerations that can hamper creativity as well as the desire for workers and industries to join us. Extremes in social issues turn away Millennials, and areas dominated by certain views will inexorably filter those energies and outlooks into the “Footloose Syndrome” for the young of the area and others who may want to join us.
There is a lesson in the numbers of the last presidential contest. A popular meme we see on social media references the 2,649 counties won by President Trump as opposed to the 503 counties won by Secretary Clinton. Those 503 counties that leaned more Liberal than Conservative held 64% of our economic output in 2016 (2).
If we really are prepared to work for economic progress, and towards a “Wild Spirit” of Creativity from a younger generation that holds progressive ideas, then we might have to let some of our region’s aging political and social mindsets be changed out in the next installment of creative destruction this November.
1 - US News and World Report - The 10 Best Jobs for Millenials - October, 2017
2. Brookings Institute - High Output America vs. Low Output America - November, 2016
Answer to your question:
Responsible growth to me includes understanding the needed balance between the public and private, not allowing extreme inequalities to form between neighborhoods and/or social classes, understanding that all people and roles are needed in a healthy economy and that all should be respected, and that there are some sectors of our economy that must be understood to be investments in the future rather than profit sources now.
In his book: “Capitalism, Socialism, and Democracy” Schumpeter also wrote of his agreement with Marx that Capitalism would collapse, but instead of Marx’s Proletarian Revolution, Schumpeter asserted that highly successful Capitalism would eventually give way to Corporatism and the diminishment of the individual based business in favor of monopolies.
In his vision the voting majorities would have no choice but to vote themselves into Socialism in order to survive income and class inequality that the market won’t regulate alone. And here with a third of the nation ready to take us back to 90% tax rates and hamper innovation and creativity while another third are following a Neo-Fascist whose policies are driving us further towards state corporatism, it’s easy to see why Schumpeter is seen as an Einstein of Economics.
To prevent this we must invest. In addition to recruiting tech jobs and continuing to modernize our manufacturing sector, we can find ourselves a beacon for young talent whose job it is to inspire the youth of our region and state. We have a wide base of education professionals here, with many of them aging now and in need of good replacements.
I say if we want to attract Millennials with jobs that matter; with jobs that will offer a base of economic stability to them and our area over a career; with jobs in which it is partly the purpose to cultivate the creativity of our area … educator rings a bell.
The NC General Assembly isn’t helping us in that regard because I know young teachers who have left for Texas to get paid, taking our future creativity with them. We can get some back though, or recruit others, because another way to get young people to stay is to let them see they have a voice in their community.
This election cycle there is change to be sure, as candidates driven by Millennial issues have risen to run from all walks of life in our county and state elections.
Make sure your voice is heard in November everyone ...
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Thom’s response to Gabriel
Gabriel, I agree with much of what you say, but some of your conclusions show purely political biases. Trump isn’t a neo-fascist. To the point, because it has little to do with the thread of this conversation, Conservatism has plenty of support among Millennials. Time Magazine, not exactly a bastion of conservatism, points this out in an article – “Young Americans Are Actually Not Becoming More Progressive” – August 22, 2017 – Jean M. Twenge. The article delves into the political nature of today’s younger generations… “Individualism has also led iGen and Millennials to favor one thing above all else in politicians: Authenticity. Individualism promotes “come as you are” and “just be yourself,” and iGen’ers want their candidates to be — or at least seem — unwavering in their personal beliefs.””
As we both agree, technological advances are coming rapidly. Technology is second nature to the Millennials and the following “iGeneration (iGen)” -- named for their use of iPhones and interfacing with technology. According to Public Relations Society of America, the Great Recession taught IGen to be independent, and has led to an entrepreneurial desire, after seeing their parents and older siblings struggle in the workforce. (1)
I agree with you on the issues of social acceptance of the young person’s mindset. I have a friend who is in his 70s and works for a local fabric design firm in our area. The company has a staff that consists of many Millennial aged women. These young women are choosing to live outside the area, many in Asheville. They say they roll up the streets at night in Hickory and they want to enjoy some nightlife.
So what are issues I think we can agree on that the younger generations are facing that need our societal focus and attention? 1) Burdensome college debt 2) Underemployment for America’s most educated generation 3) Unable to afford housing independence 4) Financial Fragility 5) Fewer and fewer Millennials are becoming Entrepreneurs 6) Mental Stress and Depression. (2)
Younger people have a desire to be entrepreneurs, but their financial fragility, due to college debt and not having enough income to save, is limiting their capacity to own businesses. If we as a community can come up with ways to help these young people move forward with some of their dreams and to get established, then we can get some of them live here instead of the big cities. That will lead to growth as those seeds are cultivated into the future stakeholders and cornerstones of our community.
(1) Move Over Millennials, Here Comes Generation Z: Understanding the 'New Realists' Who Are Building the Future". Public Relations Tactics. Public Relations Society of America. 12/10/2015
(2) The 10 Most Serious Problems Faced By Millennials – BestWork Inc.
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