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Keys to strengthening economy Diverse industry would help region By SHARI DOWNHILL Comparing the economy of Jackson and Josephine counties to that of flailing, single industry dependent Flint, Mich., economic consultant William Firth led Rogue Valley business and government leaders through Economy Repair 101 on Thursday. "Where the Money Is," a symposium on the economic health of Jackson and Josephine counties, was sponsored by Southern Oregon Regional Economic Development (SOREDI), in partnership with public and private underwriters. Analysis was provided by Firth and Brian Holly, economist for Oregon Economic Community Development Department. Like Flint�s doomed relationship with the automotive industry, Firth said Oregon communities have largely depended on a single primary industry � wood products � to bolster the economy. Firth agrees employment is a key indicator of a healthy economy � quality, not quantity, is what matters most, he says. And while employment has continued to climb slowly, the shift in employment to retail and service jobs has moved wages down. The nation�s healthiest economies � Austin, Texas; Seattle and Salt Lake City � characteristically have several contributing industries, Firth said. The country�s weakest economies show a decline and an over dependence on one contributing industry. Oregon�s economic boom following the early 1980s recession, Holly said, has come to a dramatic end. Firth�s analysis supports that conclusion. The migration of retirees into Jackson and Josephine counties has been touted as a regional financial salvation, contributing much-needed personal income to a lagging economy. Though those numbers add to the local population, retail and service industry jobs that support the retirees pay low wages. Using employment, wage and population data over a 25-year period from 1974 to 1998, Firth said retail and service jobs account for the most employment in both counties. Manufacturing positions in Jackson County, by contrast, still outrank all other sectors in terms of wages, according to Firth�s figures. Josephine County�s primary population earnings come mainly from retirement income, including Social Security and medical payments, manufacturing, retail and welfare programs. The key to building stronger economies, Firth says, lies in encouraging the growth of primary manufacturing industries � the business of adding value to raw materials � the basic building blocks for accumulating community wealth. Creating an incubator to nurture fledgling entrepreneurial business ventures is one way communities can encourage homegrown companies. Supporting economic development organizations like the Southern Oregon Regional Economic Development Inc., the Small Business Development Center, Southern Oregon Women�s Access to Credit, and others provides a valuable network of business professionals. Reach reporter Shari Downhill at 776-4463, or e-mail [email protected] Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2001 Mail Tribune, Inc.