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Nevada County economic groups need to work together and attract new businesses instead of concentrating on the status quo and tourism, according to a new report that was critical of existing efforts.
The county should target higher-paying businesses such as information services, which has "significant" growth potential, along with professional services and health care, the study said. Tourism should not be a target because the lower wages will not improve the county's standard of living, it said.
"You need to focus on business attraction, and you really haven't done much," said Libby Seifel, author of the 73-page report to the Nevada County Board of Supervisors Tuesday that was ordered last year.
The report's proposed strategies are almost the exact opposite of what is occurring now: The current mission of the county's Economic Resource Council has been to retain, not attract, new businesses. The mission of the area's chambers of commerce has been to attract visitors, not businesses.
The county needs to sharply increase funding to attract new businesses, the report said. It pointed out, however, that money could be redirected from the tourism budget. It also suggested tapping the private sector.
The findings reinforce a growing chorus of discontent in the community about the direction of economic development in the county. The criticism has focused on a lack of leadership and inadequate funding, among other factors. The report by San Francisco-based Seifel Consulting Inc. cost $50,000, including $15,000 from the county and the rest from a state grant.
Among the other conclusions: The county's local governments and the Economic Resource Council lack business attraction experience; no branding or marketing effort exists; inadequate local training programs are in place at Sierra College, and housing affordability remains a problem.
The county's Economic Resource Council, the Sierra Economic Development Corp., chambers of commerce, downtown associations and the Nevada County Winery Association are part of the economic development effort.
"I think you can improve," said Seifel, when asked if the groups are working together. "This holistic approach really hasn't been delivered in the work we've seen and done here ... You need to refocus and proceed strategically."
Although local economic groups are backing a shop locally effort, the campaign does not address the need to grab new businesses, according to Seifel.
The Economic Resource Council's newly named leader, Gil Mathew, agreed with Seifel's findings. An economic development agency focused on attracting business is "exactly what must be done," he said.
The supervisors were unanimous in their support of the report and said they would like Seifel's ideas to be implemented immediately.
Other recommendations included:
• County local governments should expand the amount committed to economic development funding from its current level of $95,000 to an estimated $300,000. "The additional funding would increase local capacity and provide the resources needed to engage in business attraction initiatives," the report said. In addition, the county must shift some of the $204,000 it spends for tourism promotion to hard business attraction, Seifel said.
• The county should target five industries: construction, finance and insurance, professional services, health care services and information services. These industries pay higher-than-average wages and are growing faster than the general economy, the report said.
• Create a business-attraction marketing and branding effort. The campaign should focus on the area's strengths, such as proximity to Sacramento, presence of existing technology companies, a general aviation airport and a lifestyle that includes historic downtowns, open space and recreation. The branding effort could cost between $40,000 and $80,000, it said.
• Identify ways to improve the effectiveness of the county's workforce training programs. "Workforce training programs should be retooled to better match employers' needs for knowledge intensive workers," the report said.
• The ERC, in concert with Nevada County, Grass Valley, Nevada City and local property owners, should market and promote potential business and industrial parks with "adequate" infrastructure. It included sites such as the Nevada City Tech Center, Nevada County Airport and Loma Rica Industrial Park.
County Executive Officer Rick Haffey said an annual meeting between the county and the cities of Truckee, Grass Valley and Nevada City in February would be a good starting point because the topic this year is economic development.
• Attract and retain business that pay higher-than-average wages including construction, finance and insurance, health care and information services
• Create a marketing/branding effort
• Increase spending on economic development
• Improve the effectiveness of the county's workforce training programs
The county should target higher-paying businesses such as information services, which has "significant" growth potential, along with professional services and health care, the study said. Tourism should not be a target because the lower wages will not improve the county's standard of living, it said.
"You need to focus on business attraction, and you really haven't done much," said Libby Seifel, author of the 73-page report to the Nevada County Board of Supervisors Tuesday that was ordered last year.
The report's proposed strategies are almost the exact opposite of what is occurring now: The current mission of the county's Economic Resource Council has been to retain, not attract, new businesses. The mission of the area's chambers of commerce has been to attract visitors, not businesses.
The county needs to sharply increase funding to attract new businesses, the report said. It pointed out, however, that money could be redirected from the tourism budget. It also suggested tapping the private sector.
The findings reinforce a growing chorus of discontent in the community about the direction of economic development in the county. The criticism has focused on a lack of leadership and inadequate funding, among other factors. The report by San Francisco-based Seifel Consulting Inc. cost $50,000, including $15,000 from the county and the rest from a state grant.
Among the other conclusions: The county's local governments and the Economic Resource Council lack business attraction experience; no branding or marketing effort exists; inadequate local training programs are in place at Sierra College, and housing affordability remains a problem.
The county's Economic Resource Council, the Sierra Economic Development Corp., chambers of commerce, downtown associations and the Nevada County Winery Association are part of the economic development effort.
"I think you can improve," said Seifel, when asked if the groups are working together. "This holistic approach really hasn't been delivered in the work we've seen and done here ... You need to refocus and proceed strategically."
Although local economic groups are backing a shop locally effort, the campaign does not address the need to grab new businesses, according to Seifel.
The Economic Resource Council's newly named leader, Gil Mathew, agreed with Seifel's findings. An economic development agency focused on attracting business is "exactly what must be done," he said.
The supervisors were unanimous in their support of the report and said they would like Seifel's ideas to be implemented immediately.
Other recommendations included:
• County local governments should expand the amount committed to economic development funding from its current level of $95,000 to an estimated $300,000. "The additional funding would increase local capacity and provide the resources needed to engage in business attraction initiatives," the report said. In addition, the county must shift some of the $204,000 it spends for tourism promotion to hard business attraction, Seifel said.
• The county should target five industries: construction, finance and insurance, professional services, health care services and information services. These industries pay higher-than-average wages and are growing faster than the general economy, the report said.
• Create a business-attraction marketing and branding effort. The campaign should focus on the area's strengths, such as proximity to Sacramento, presence of existing technology companies, a general aviation airport and a lifestyle that includes historic downtowns, open space and recreation. The branding effort could cost between $40,000 and $80,000, it said.
• Identify ways to improve the effectiveness of the county's workforce training programs. "Workforce training programs should be retooled to better match employers' needs for knowledge intensive workers," the report said.
• The ERC, in concert with Nevada County, Grass Valley, Nevada City and local property owners, should market and promote potential business and industrial parks with "adequate" infrastructure. It included sites such as the Nevada City Tech Center, Nevada County Airport and Loma Rica Industrial Park.
County Executive Officer Rick Haffey said an annual meeting between the county and the cities of Truckee, Grass Valley and Nevada City in February would be a good starting point because the topic this year is economic development.
• Attract and retain business that pay higher-than-average wages including construction, finance and insurance, health care and information services
• Create a marketing/branding effort
• Increase spending on economic development
• Improve the effectiveness of the county's workforce training programs
