Why do we need economic development?

America's economic prosperity is fostering an attitude of nonchalance toward economic development from the general public. Isn't that a good thing?

You can't turn around these days without reading or hearing about another economic record broken.

Economic Development Authority of Western Nevada Reno/Sparks just completed a record-setting year for new companies and job growth. Las Vegas had its best decade ever for new jobs. Storey County is the site for the world's largest (15,000 acres) industrial park.

You get the picture.

In other words, the American economy is good. One would think economic developers would be the most popular people in their respective communities.

Then why do I get the feeling that economic development professionals rank somewhere not too far above lawyers and journalists in public perception?

In these good economic times, the message put forth by the local economic developer can get drowned out. The public sees jobs being created, companies expanding, salaries going up. So, the public asks, "Why do we need economic development?"

Think I'm paranoid? Take a look around you and see what's out there.

In Lyon County, the commission did not want to provide incentives to a new company that wanted to relocate to Fernley.

In Douglas County, a partnership for economic development is finally being formed by the many splintered organizations that have their own economic development agendas.

In Storey County, several industrial projects have been denied incentives to expand their operations.

"People are falling all over themselves to develop up there (the new Tahoe-Reno Industrial Center)," Storey County commissioners have said in the local newspaper. "We don't need to give away the farm to any company."

This isn't a story about the rightness or wrongness of incentives; that ground has been covered in previous articles. It is, however, symbolic of how economic development is viewed by many people outside of the profession.

Perhaps it's time for economic developers to change their message to the public.

Yes, economic times are good in many cities and states. But it's during the good times that communities should be planning to make the future secure.

"As soon as a community becomes complacent, it will decline," said William Fruth, president of Policom Corp., an independent economic research firm. Fruth told the leasers of the capital region during a series of presentations, "The forces that impact an area's economy aren't contained in a city or state. Today, competition is global."

Fruth analyzes the economics of U.S. metro areas, and has spoken to countless towns and cities about their own economic situations. (He described our 20-year economic history and explained our current situation in Carson City, Douglas and Lyon counties.) According to Fruth, the worst thing a community can do is nothing.

"If the thing is left to chance, the local economy will degenerate," said Fruth. "Over time, the manufacturing community in an area might make a product that becomes antiquated."

"Eventually, these companies either change, or go out of business. If a community is dependent on just four or five of those businesses, their long-term outlook isn't good."

So what is an economic developer to do? Recognizing the need for a diverse economy and making it happen are two different things.

For starters, the Northern Nevada Development Authority has to convince you and the residents of the capital region that economic development is important and necessary. The public must understand we are not competing against just a neighboring state or region for business, we're competing against the world.

If the residents of the capital region don't understand why it's important for NNDA and its partners to do such things as change zoning, erect spec buildings, attract new investment, or offer incentives, we must continue to be proactive. Realize that if a company can't do business in our area, it will find another place in the country, or world, where it can.

"As soon as a community takes the value-added companies for granted, it immediately makes that community less competitive," said Fruth. "A company producing the same thing in Thailand or another country doesn't have those same costs of doing business as a company here."

"If a company can't stay competitive, it will cease to do business."

Think that won't happen to you or our region? You'd better sit down and look at the possible flies in our area's economic development ointment. The rash that could follow isn't good for business. Remember, primary jobs enhance the wealth of a community.

n Kris E. Holt is senior adviser for Grubb & Ellis Inc.