Economically, Columbus is poised to become a “shining star of the South,” said economic development expert Bill Fruth, who noted a few caveats, some which didn’t sit well with a group assembled Wednesday at Mississippi University for Women’s Nissan Auditorium to hear him speak.
Fruth was hired by the Columbus-Lowndes Development Link Trust to analyze the area’s economic health and devise a growth strategy for the next decade. The backbone of Fruth’s plan calls for creating more high-paying, “primary industry” jobs — specifically industrial manufacturing positions paying $47,000 salaries or higher.
Primary industries are those which sell goods and services outside the area, exporting a product to another community and “importing” new money into the local economy, rather than recycling what already exists.
In 2009, the average wage for all jobs in Columbus was $43,311. Starkville’s average annual wage was $36,246, Tupelo’s average was $37,763 and Meridian’s average was $38,671.
Manufacturing was responsible for 40 percent of the area’s economy, and Columbus Air Force Base contributed 24 percent, said Fruth. But conversely, the third largest primary contributor to the local economy was government entitlements, mainly welfare. That’s not typically seen in strong economies, Fruth added.
If Columbus keeps on its present growth track, the local economy will begin stagnating around 2016, with worker wages unable to keep up with inflation, he predicted.
Fruth provided two “achievable” scenarios of milestones for Columbus to meet, with one providing the baseline for the area to stay at its current level through 2025, by creating 3,645 primary jobs averaging an annual salary of $64,811, and the other taking an aggressive approach to growth, creating 6,241 primary jobs with an average annual salary of $71,044.
Tourism
But just creating jobs for the sake of jobs sometimes does more harm than good over the long haul, Fruth cautioned, advising he would not seek to recruit two low-wage industries — tourism and retirement.
“They will bring you down to their level,” Fruth said. “You don’t need low-wage jobs here. You’ve got plenty.”
With Columbus’ 72nd annual Spring Pilgrimage in full-swing this week, Columbus resident Bob Raymond argued tourism keeps the city’s 890 hotel rooms full and criticized Fruth for downplaying its impact on the local economy.
Fruth countered by saying tourism isn’t bad, it just shouldn’t be a priority, and hotel rooms are better filled by the commercial crowd.
Columbus Air Force Base
Likewise, Fruth downplayed CAFB’s role in the local economy, saying if another round of BRAC (Base Realignment and Closure) hits the area and forces the base to close, the negative effect could be offset with his aggressive plan to add more industrial manufacturing jobs.
“Base closure will be a devastation to our community,” argued Dr. Raj Shaunak, vice president of workforce and community services at East Mississippi Community College.
CAFB is Lowndes County’s largest employer, providing 3,000 military and civilian jobs and pumping an average of $230 million to $300 million annually into the local economy.
Link CEO Joe Higgins interjected, saying he will have Fruth create an additional scenario factoring in the potential economic effect of a total base closure and report back to the Link.
What about education?
Fruth praised area educational institutions for their “exceptional” close ties with the business community. He said he rarely sees the level of cooperation existing here, particularly in tailoring workforce training to the needs of local industry.
In eight out of 10 economies, the universities contribute to the economy but don’t cause growth, he said. Many have funded research and development parks which now lie fallow.
Additionally, Fruth noted one in 10 universities causes the economic decline of an area and he blamed their “liberal, anti-business element” for taking over local governments and creating restrictive policies which drive industry away.
Colleges must make it their mission to spur economic growth, states must enforce it and communities must support it, he said.
Allegra Brigham, interim vice president for university relations and advancement at MUW, asked how a college meets that goal.
Fruth advocated college research and development facilities which eventually commercialize their services or goods, becoming primary industries and an incubator for entrepreneurs.
But this takes time, he said, adding EMCC and MSU have “good activity,” but MSU has “a long way to go” and may not be creating the kind of research to be commercialized as a primary industry. He didn’t reference MUW’s initiatives.
Higgins said he will have Fruth spend time with MSU, MUW and EMCC, coming up with suggested best practices for each institution.
But some in the audience, like new Columbus Municipal School District board member Jason Spears, saw an opportunity for primary and secondary education to play a role as well.
Spears, a financial planner, said we can “recalibrate” the vision of education by renewing the focus on vocational-technical schools and trades.
“We could be the epicenter of the creation of a new mindset of what people should strive to do,” Spears said. “It’s about having a passion.”
Quality of life
Fruth dismissed local amenities, like bicycle trails and parks, as incentives to lure industries to an area. It’s about profitability, he said. A city might be “the nicest place in the world,” but because primary industries aren’t geographically dependent, they can — and will — locate anywhere that provides a better profit margin.
“People don’t move, because an area is pretty, and then look for a job,” he said.
But Rick Duke, a visiting University of Southern Mississippi economics and workforce development professor and director of the Trent Lott National Center for Excellence in Economic Development and Entrepreneurship, drew applause from the audience when he spoke of hearing Paccar officials describe why they chose to locate their engine plant in Columbus.
The tipping points, he said, were the area’s charm and beauty and its higher education system.
“This is one of the finest communities I’ve seen,” Duke said. “Economic development is a comprehensive strategy. Industrial recruitment is certainly important, but with the quality of place you’ve created here, you really do have a huge asset.”
What’s next?
Fruth will return to deliver his analysis of West Point’s economy and recommended milestones, as well as to discuss the impact a base closure would have and the things local universities should be concentrating upon.
His advice to Columbus Mayor Robert Smith, when asked for two major objectives the city and county should pursue: “Don’t mess it up.”
“I’ve seen local government decisions ruin an economy,” Fruth said. “Don’t pass rules and regulations and hire staff that hates business.”
With the area’s abundance of land, cheap energy and multi-modal transportation, Fruth believes even his most aggressive goals are achievable. The challenge will be creating mid-range jobs in the $35,000 to $45,000 range so lower-level wage earners can move up and higher-paying employers can draw from the mid-range income bracket to fill openings, keeping people moving up the rungs.
By Fruth’s definition, economic wealth equals a better quality of life, though he admitted many people disagree with the role money plays. Some even picket his seminars, he said.
“Here’s the deal,” Higgins said. “I’m not worried about offending anyone. I think it’s very important you understand what mission number one is. It’s creating primary, high-paying jobs. Period. End of sentence. If you don’t agree, I don’t care.”
He said if the primary jobs are in place, the other concerns will take care of themselves.
“We’re going to continue doing what we’ve been doing,” Higgins said of the Link. “We’re not going to apologize. We can’t improve our economy and the quality of our economy if we don’t.”
Carmen K. Sisson is the former news editor at The Dispatch.
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