“What would it take to advance our competitiveness?”
That’s the question Ernst & Young Economic Development Advisory Services Leader Amy Holloway posed to Northern Kentucky community leaders.
On Wednesday morning, Holloway gave a presentation to Northern Kentucky county officials, industry leaders, and elected representatives on how the region can remain economically competitive with other similarly-sized regions. Holloway, herself, has experience living in Austin — a city that’s been heralded for its metropolitan development.
Furthermore, she explored what strategies and policies other prosperous metropolitan areas use and how Northern Kentucky leaders could incorporate those methods into their development strategy.
The discussion was hosted by BE NKY Growth Partnership, an economic development company serving Boone, Campbell, and Kenton counties.
At the turn of the century, Northern Kentucky’s economic development strategy primarily focused on business attraction, or what Holloway referred to as “elephant hunting.”
“Go out in the biggest investment you can, and then that’s a win,” she said.
Since then, more multi-faceted economic development strategies have emerged. These strategies include a greater focus on quality-of-life investments like recreation, housing and reliable public transportation.
“It’s a new definition of competition,” Holloway said. “That’s what we’re dealing with right now. And to be the very best, we need to have that integrative perspective and be able to embrace the sheer importance of working together, as a whole, as a community.”
Currently, there are 8.8 million job openings in the United States, according to the US Bureau of Labor Statistics. At the same time, the country’s overall population growth is flatlining. This makes the competition for working-aged adults between 25 and 55 even more critical.
“What do we do with fewer people in our communities, and how important it is to now to be investing in those quality of life assets, in those programs that make us an attractive place for people — to retain the population that we have, and even attract more people,” Holloway said.
This trend has put small to medium-sized regional manufacturing firms in a crunch, Holloway said. These employers might not have the resources or capital to automate certain functions within their facilities while they’re simultaneously struggling to find the talent necessary to fill crucial operational and administrative roles.
Still, these manufacturers are investing in automation, which will disproportionately affect a large swath of lower-wage jobs.
Flatlining population growth will not only impact the workforce but also have broader implications for other economic sectors such as healthcare and infrastructure. With the number of NKY residents over 65 increasing yearly, the regional healthcare system must be equipped to handle this trend.
BE NKY President Lee Crume mentioned how the phenomenon of interstate migration seems to get brought up more frequently as a solution when discussing economic development.
“It seems to me that there are really clear winner communities and there are really clear loser communities in that equation, and then there’s kind of everybody else,” Crume said.
Holloway agreed. She suggested that NKY leaders “not let their foot off the gas pedal” regarding quality of life investments.
“The availability of quality healthcare, wellness, all of those amenities are important and they definitely tie into the economic equation today,” Holloway said.
Technology is another important focus of many successful economic development strategies nationwide. As the need for data processing capacity grows, Holloway believes that NKY leaders should consider opening up the region for data processing centers.
“What we’re seeing in some areas of the country, these data centers are coming in and they’re putting in billions and billions of dollars worth of facilities,” Holloway said.
She also suggested that higher education institutions in the region, such as Northern Kentucky University and Gateway Community & Technical College, continue investing in information technology curricula and student training. This way, once those students enter the workforce, the pool of technologically-skilled workers will increase. This can support multiple sectors in the regional economy as it becomes increasingly digitized.
Finally, the availability of housing is another key issue facing Northern Kentucky. She said the region should continue investing in housing, keeping it “top of mind” when considering development strategies. Members of the audience suggested the focus should be on increasing the supply of apartments and houses for first-time homebuyers.
“There isn’t a single community that we’re working in right now that isn’t talking about housing and the availability of housing at all levels, not just affordable housing but market-rate housing, executive-level housing,” Holloway said.
BE NKY highlighted four industry clusters the region should be committed to growing into the future: supply chain management and support services, advanced manufacturing, information technology and life sciences. Holloway said the region’s diversified economy is a strength that many other areas don’t have.
Going into the future, Northern Kentucky can emulate other successful metropolitan areas across the country. Charleston, SC and Charlotte, NC were two of the most frequently mentioned during the meeting.
Many other regions are also facing issues like housing shortages and demographic crunches. When creating a comprehensive development plan, Northern Kentucky leaders can look to other area’s strategies and gauge whether or not they are viable for the region.
“This isn’t like a one-and-done solution either,” Holloway said. “It takes a lot of coordination. It takes years of commitment.”
