Growing the local economy.

[TheArtist]

   Ran across this article and think a lot of what it says is true. 

"You argue that U.S. cities need to grow a different kind of economy. What kind of economy are you talking about?

At the city-metro level, there has been too much focus on what we call Starbucks, stadia and stealing businesses. It's a consumption-driven growth model that in the end doesn't really expand and extend your economy. It's just recycled income. We've got to grow the pie.We believe, as do many others, that we need to use this past recession as a wake-up call and shift to an economy that first and foremost is driven by exports, greater global engagement, and the production of high-value goods and services -- building off what has been our manufacturing base and advanced-services base. That will be the way to enhance the fiscal base of cities. Exporting firms, manufacturing firms and innovative firms pay better wages for a broad spectrum of the workforce."


"...a Wal-Mart is a Wal-Mart is a Wal-Mart whether it's in Phoenix or Pittsburgh. But what Phoenix and Pittsburgh trade within this country and with the rest of world is completely different. My view is that going forward cities and metros need to be very intentional and purposeful about building on special assets and strengthening their distinctive strengths. If you do that, housing and retail will follow. Those are derivative -- not driving -- sectors. We lost sight of that fundamental economic fact."

"...successful metro areas understand who their trading partners are domestically and globally. You see this in Seattle and Northern California. They interact on a constant basis with the cities and countries they trade with and strengthen the linkages between their communities and their trading partners abroad. A lot of trade growth is relationship-driven. At the city level, what matters are relationships between and among elected officials, investors, manufacturers and service firms. San Francisco has become pretty adept at helping local firms identify markets abroad and helping Chinese investors find good investments here. "

"The bulk of positive job growth builds from current clusters and sectors. Stealing business from a neighboring state is a low road kind of growth. Building on special, distinctive strength is the high road. When you build a robust platform for advanced manufacturing or high-value services, that's the gift that keeps on giving. Development of a successful economy starts with an understanding of who you are. What is the distinctive nature of your economy. It's not how to be like everyone else, which describes the old economy -- building lots of housing, attracting big-box retailers. The next economy will reward places that build on distinctive strengths."

Full article here...  http://www.governing.com/columns/public-finance/building-new-financial-base.html

I am glad we have as a city done the things we have done lately, New Arena, ballpark and downtown development, and hopefully the wrap up of the new Comprehensive Plan.  We needed those things to, if anything, build some self-esteem and become a more desirable, well rounded, city to live in.  A city with not just good suburban lifestyle options, but the beginnings of good urban lifestlye options as well, for more and more people are wanting to live and work in good urban environments. 

I am glad we have invested in higher education, though I still think we could do more in that realm along with other job/career preparation programs (High School to Tech as one type) and teaming up with businesses to grow and enhance the industry clusters we do have along with any new ones we want to develop.  That is something we and our leadership need to redouble our efforts on, along with actively facilitating the promotion and connection of our industries with the rest of the world in order to help promote local exports and growth of our high value service industries. 

In what manner are our local government entities doing this?  Which ones are responsible for doing this?  And how could they improve?

As exciting as it is to see Blake put in another business downtown, or to see something else go in at Southern Hills, we can't forget that a higher priority at this time is for us to be nurturing our "industry clusters" http://www.isc.hbs.edu/econ-clusters.htm  and facilitating their export growth.

[GG]

Thanks for sharing this.   I have forwarded the link to Chelsea Harkins Economic Director for the City of Owasso and to Lt. Governor Todd Lamb.  They may have seen it already, but maybe not.  I think there are some good ideas to kick around.

[heironymouspasparagus]

Thanks!  Enjoyed the read!

She also wrote about housing in an interesting note here;
http://www.governing.com/columns/public-finance/death-mortgage-interest-deduction.html


For a long time, housing in this country has been based on building from the edges of the city outward.  As central areas age and decay, they are abandoned in great part to the poor, or left to decay, rather than trying to salvage, renovate, and re-purpose.  Tulsa had a major case of this for decades.  In too many cases, nationwide and northeast Oklahoma, this had led to destruction of productive agricultural areas that would serve better as they had been. 

Downtown in recent years has become a very good example of attempts to rejuvenate.  My main disappointment has been that too many of the older buildings were lost, and too many parking lots just "happened" with no apparent thought from the city on how to better use the available land surface area.  (I like the idea of a few high rise parking facilities, going from several stories below ground to a few stories above ground, spaced strategically, with adequate pedestrian transportation through the city center - and no street parking in that core area.)

[we vs us]

I think one of the reason that "stealing" existing businesses or courting chains is that it's a relatively straight forward process, and you can measure possible success before it happens.  If we, for instance, get a Spirit Aero fabrication group to move here from Wichita, we can easily have a sense of what that means for the area.  Same with getting a new Sams Club to open in Tulsa Hills.  We'll know -- because Sam's Club knows -- how many they'll hire, what the probably economic impact is, etc.  If we try to innovate our own products, companies, services, whatever -- the risks are high and the payoffs are murky at best.  Possibly huge but also possibly nothing.  That's not to say that a city's economy shouldn't have both to be balanced, but it's understandable that, especially in times when resources are tight, investment might flow more into steals rather than innovations. 

As for our business clusters, IMO we're positioned really well for where the world seems to be headed.  Natural gas is obviously going to be huge for the time being, and the fact that we've been able to be part of the developing wind power infrastructure is also great.   All the oil and gas infrastructure that we build isn't going away anytime soon.  I constantly worry about our AMR maintenance base -- mostly because of AMR itself -- but I'm fairly sure that that's secure for the foreseeable future because it's so important to so many other major suppliers here in town (I always believe that once a sector is big enough, the chances of it shrinking drastically or going away altogether become almost nil, mostly because the sector will be valuable enough to sell or save).  But it's also true that the aerospace fabricators are much bigger than AMR alone so it's possible that we could stand on our own without them, too. 

In any event, I think we're looking good, especially in comparison with some of the blown out markets that've been killed by the real estate crash. 

[TheArtist]

  Courting chains is another of those "shuffling money around" rather than creating money situations.  The one exception might be for say Tulsa to court a chain that could become a regional draw.  Ikea, H&M, etc.   I mean I drive all the way to Dallas sometimes with one of the main attractions being Ikea lol. If you get another Sams, no big deal, every place has those and thats people spending money there that they would have spent somewhere else in town regardless.  Wages are NOT profits.  Shuffling money around, not creating it or bringing it in.  Or the other way to see it is profits going out of the city as compared to someone spending money at a local business and more of the profits staying.  But then an even better thing is for the products and the services themselves to be created/based here and sold all over the country and world. QT as an example.  When was the last time Texaco built us a park, sponsored an event, gave money to the local shelter, had lots of wealthy execs spending and investing money locally, etc.?  Much of that is profits from QT's stores in other cities and states flowing into Tulsa. Your going to have relatively similar number of gas stations per population/traffic in every city.  Courting some other gas station chain to come into town won't increase jobs, unless perhaps you snag the headquarters as well.  Same with a Sam's or a Sears.  The items will get bought somewhere by the people here, employing roughly the same amount of people and putting about the same amount of money back into the area,,, unless it's locally owned which ramps it up a notch, and then locally produced ramps it up a notch further.  But what really gets you bringing in the dough and expanding the local pie is not just selling here, but your local company exporting and selling goods and or services elsewhere.  Thats what our leaders should be focusing on more than, bringing in another this or that.  Rather than going somewhere and courting Sams, go somewhere and be talking up our Reasors. Don't be courting another Starbucks, be exporting Topeca Coffee Co.  Help Bama Pies, which manufactures here get connections to sell in Asia.  etc. etc. Not the best examples, but you get the gist lol.  

[eblanchard32]

My partner and I are looking for office space in Tulsa for our start up company. Any advice on where to look?

Eric

www.ironhorsesolutions.com

[TheArtist]

 Aaaall kinds of great opportunities downtown, especially for a start up.  Get in while its still cheap.

[eblanchard32]

Do you have any contacts that could help?