NADO Regional Development Digest - March 17, 2005
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In this issue:
•  Communities Adjust for Economic Survival
•  Key Players in Rural Transportation Planning
•  Lending a Hand to Build Loan Fund Capacity
•  Regional Approaches to Protecting Communities
•  Coping with Brownfields Prohibited Costs
•  New Center to Promote Environmental Sustainability
•  511 Gives Travelers Clear Direction
•  State Associations Work Toward Regional Cooperation
•  Around the Regions
•  Digestibles
•  NADO Events and Conferences

Communities Adjust for Economic Survival

By: Zanetta Doyle, Editor
Due to the drastic employment decline in the timber and textile industries, particularly in rural communities, regional development organizations have been actively assisting communities find alternative ways to offset the jobs lost when these industries disappear.

In the early nineties, northwestern states like Northern California lost thousands of timber-related jobs when restrictions on timber harvesting took effect. The American Manufacturing Trade Action Coalition reported that the U.S. textile and clothing sector lost almost 400,000 jobs between January 2001 and January 2005. Due to the drastic employment decline in the timber and textile industries, particularly in rural communities, regional development organizations have been actively assisting communities find alternative ways to offset the jobs lost when these industries disappear.

Initiative Helps Communities Recover
The rural, timber-dependent communities in Washington, Oregon and California partnered to launch the Northwest Economic Adjustment Initiative. The Initiative was designed to provide temporary financial assistance to areas impacted by federal policy that stopped timber harvests to protect the endangered Northern Spotted Owl. The goal was to diversify their economies, and assist workers, businesses, tribes and communities affected by reductions in federal timber harvests. The Initiative allowed the federal government to work with state, tribal, and local officials and representatives of the nonprofit and private sectors to streamline assistance to help retrain dislocated workers, encourage and support investment and business retention and expansion, and develop infrastructure and professional capacity for economic development in impacted communities.

Economic Adjustments Helped CA Recover
Numerous counties in Northern California were severely impacted by the timber harvesting restrictions. “The loss of those hundreds of jobs had a substantial impact on the region,” Marc Nemanic, Executive Director of the Tri-County Economic Development Corporation (EDC) in Chico, CA, reported. “Many mills closed, and most of the higher skilled workers moved to other areas to find work.”

Under the Northwest Economic Adjustment Initiative, the Tri-County EDC, Superior California Economic Development and the Arcata Economic Development Coalition were selected to administer nine separate grants to create Revolving Loan Funds (RLFs). “Our task was to identify businesses that could expand,” Nemanic said. The EDC funded $1.5 million in loans in two counties and leveraged $7.7 million in private investments. These 18 loans have created or retained 62 jobs.

Robert Nash, Executive Director of the Superior California EDD in Redding, CA, commented on how the funds were able to help his region recover from the loss of timber jobs. “The jobs were never completely replaced,” Nash said. “Our focus was more on long-term strategies to help communities adjust and find other alternatives to timber-related industry.”

As a result of the assistance from regional development organizations in Northern California, investments have been made in various local businesses including firewood, trucking, wood manufacturing, mini-markets, and two part-time, tribally-owned dump truck companies. These businesses have created new jobs and boosted local economies. “We see our role as helping communities along until they can identify opportunities or stabilize the economy that is left.” Nash said. 

Searching for the Right Fabric to Replace Textile Jobs  
   
The ten-year phase out of quotas on imports of textiles and apparel from countries that subsidized their export industries was completed on January 1, 2005. The National Council of Textile Organizations reported that since the completion of this phase out, textile and apparel job losses have accelerated sharply with over 12,000 jobs lost in the combined sector in January.  At least seven textile plants have already closed in the United States this year. Even though communities continue to feel the affects of the decreasing presence of U.S. textile mills, regional development organizations have provided assistance that has enabled local economies to recover.

In North Carolina, five mills have closed since 2002, resulting in the loss of about 2,000 jobs. During the past five years, the Upper Coastal Plain Council of Governments (COG) in Rocky Mount, NC, which serves as the administrative entity for the Workforce Development Board and acts as the fiscal agent for the disbursement of Workforce Investment Act funds, has received an average of $2.5 million over a five-year period to help dislocated textile workers find new careers. The COG has helped displaced workers get community college training in health fields such as radiology and surgical technology. Students receive assistance with tuition, books, childcare and other fees.

Funding is also provided to train dislocated workers to become truck drivers. Through opportunities like these, North Carolina has been fortunate in keeping many people in the area. “Many of the upper management textile employees did move on to other locations to find work, but the majority have stayed in the region and have taken advantage of the workforce development retraining,” Pam Whitaker, Workforce Development Director for the Upper Coastal Plain COG, said.

An emerging industry that has replaced some of the lost textile jobs is the warehousing distribution industry. “Overall, the jobs created may not be in the manufacturing sector, and we have lost more than have been created, but we have been able to regain some through various industries including the health sector and the distribution industry,” Greg Goddard, Executive Director of the Upper Coastal Plain COG, commented.

For more information contact: Lanier Boatwright at 770.227.6300 or lboatwright@cityofgriffin.com; Marc Nemanic at 530.893.8732 or marc@tricountyedc.org; Bob Nash at 530.225.2760 or bnash@scedd.org; Greg Godard and Pam Whitaker at 828.322.9191 or ggodard@ucpcog.org, or pwhitaker@ucpcog.org.