Washington Business Winter 2018 | Washington Business | Page 40

washington business the urban-rural divide by the numbers Rural: 24 Metro: 15 Counties not included in U.S. Census Bureau definition of metro Counties in metro areas of Bellingham, Bremerton, Longview, Mount Vernon, Olympia, Portland, Seattle, Spokane, Tacoma, Tri-cities, Wenatchee and Yakima from 2005 to 2015, personal income grew 23.1% 19.3% Metro Rural from 2005 to 2015, population increased 6.8% 2.0% Metro Rural per capita net earnings Nearly $35,000 Roughly $20,000 Metro Rural 20 Rural counties had slower population growth than the state as a whole. 20 “Many … rural communities have seen an exodus over several generations of the traditional [natural resource-based] rural jobs,” she says, “a disinvestment in … critical infrastructure …, and a challenge in diversifying their economies.” Franz advocates a two-tiered strategy, combining “broad statewide policy changes to unlock opportunities across communities, and a sustained, localized focus on realizing specific opportunities,” she says. At the state level, incentives and policy changes can pave the way for local activity. She cites opportunities to promote use of cross-laminated timber in construction, expand water resources, and put unused state-owned commercial and industrial land into active use to stimulate development. Jonathan Smith, executive director of New Vision, the Yakima Economic Development Association, says cities often have an infrastructure advantage. “But [with] strategic investments in infrastructure … in rural communities, it’s been demonstrated that businesses you’d only see in urban [areas] will go to the rural parts of the state.” To illustrate the point, he cites the abandoned Air Force base that left Moses Lake a 13,000-foot runway that was essential to landing Mitsubishi Regional Jet in the community. A small community couldn’t make that investment; the federal government did. And it paid off for the region. Steve McFadden, head of the Adams County Development Council, knows first hand the importance of having the right stuff in place. Shortly after the council was formed in 2007, the group contracted with site selection consultants to identify growth opportunities. One key industrial prospect — food processing — would require a new wastewater treatment facility. “In Adams County water is our golden commodity,” McFadden says. The community wants to build a $3.5 million treatment plant, a partnership between the Port of Othello and Adams County. The state Community Economic Revitalization Board funded a feasibility study; additional support is anticipated in the state capital budget. Smith says there are statewide benefits to public investment in rural communities. Distributing economic activity can ease urban traffic congestion, reduce stress on urban infrastructure, and lessen the housing affordability pressures in metro areas. skilled employee base Rural counties had slower employment growth than the state as a whole. Source: Steve Lerch, Washington State Economic and Revenue Forecast Council 40 association of washington business Employers need employees. In some small communities, even those with relatively high unemployment rates, finding enough people with the skills required by a prospective business can be a challenge. “Large employers regularly point out to me that the population is declining in three cities [in the county],” says Steve McFadden. “While there’s growth in Othello, it’s not enough to support a plant with 250-300 positions, many of them highly-skilled positions.”