Rural counties in northern Nevada face five critical issues that could stall economic development, says a new report issued by AngelouEconomics, a consulting firm.
They include the lack of high-wage jobs, lack of a young professional workforce, lack of affordable housing, lagging educational attainment, and strain on infrastructure due to tremendous growth.
But there's an upside, says Ron Radil, executive director of the Western Nevada Development District. Because of the large amount of publicly owned land, the region provides the outdoors lifestyle that could attract those young people. And, some of that public land could be acquired for private use through land trades.
Add to that, says the report, an excellent quality of life, abundant recreational opportunities, good tax climate, low business costs, plus a central Western location, and an expanding presence on the national economic development scene.
The report clarified situations the rural northern Nevada region has been aware of, says Ron Weisinger, executive director of the Northern Nevada Development Authority. Such as the growth of an aging population, water resource challenges, and a work force in need of attracting 25- to 44-year-olds.
At the same time, he says, the region's attributes were defined as growth incentives with abundant affordable land, a pro-business environment, a quality of life to attract young professionals, and an environment ripe for growing businesses in the health care services industry, software and information technology.
Specifically, the report said that:
* Regional population grew by 56 percent since 1990, a 3 percent increase per year. But that's expected to slow to 2 percent annually over the next five years.
* Labor force growth is only 1.7 percent, a significant lag compared to population growth, as many new residents are not entering the labor force. Population growth ranges from a negative 5.8 percent in Mineral County to a positive 3.6 percent in Lyon County.
* Median age is 40, and the region has more residents over 45 than found in the U.S. on average. Median ages ranged from 34 in Churchill County to 46 in Storey County.
* Only 24 percent of residents fall into the category of young professionals aged 25 to 44. That's significant because high-tech companies want to see 33 percent of population in this category.
* A low percentage of college educated people live in the rural counties, ranging from 9 percent in Pershing County to 24 percent in Douglas County. However, the region also has a low percentage of high school dropouts.
* Median wages, at $32,000, are also lower than the national average of $39,000. The wage range ran from a low of $35,000 in Mineral County to $58,000 in Douglas County.
A summary of key issues broken down by county:
Carson City woes include limited land availability that contributes to high housing costs, making it unaffordable for many. Both the labor force and household income are growing at a meager pace. The city's strongest industrial cluster, aerospace and defense, has been declining.
Churchill County's average wage at $28,000 is well below the national average of $39,000. It also has the youngest population of the seven counties, due to a large population of children under age 14. However, it boasts the lowest unemployment rate within the region.
Douglas County's average home price of $478,000 makes the county unaffordable for most employees. Half the population is older than age 45. And the economic base does not pay high wages. How- ever, it experienced the fastest income growth within the region. On the upside, while it has the most college-educated residents, it still lags behind the national average.
Lyon County, while lagging in educational attainment and with a relatively high unemployment rate, still boasts the fastest growing population and labor force in the region. That strains infrastructure needs, such as Highway 50 East.
Storey County has the oldest median age in the region, but also strong income levels and growth, plus the tremendous economic expansion potential at the Tahoe Regional Industrial Center.
Pershing County, with the youngest median age in the region, faces closure of the Coeur-Rochester mine, which will have a significant impact on employment. The only strong industry clusters are government and eateries.
Mineral County faces significant economic challenges, with a very low educational attainment level, low income and slow income growth, plus significant population and job loss, which is projected to continue.
The initial report took into consideration surveys returned by residents and 93 businesses. A visioning document will be released on June 12, followed by a development strategy in late summer, which will include an action plan and implementation strategy.
The Database of Assets report, the first for the NorthernNVision economic development planning project, was presented to the NorthernNVision Steering Committee by AngelouEconomics, the project consultants based in Austin, Texas. This study, sponsored by Northern Nevada Development Authority and Western Nevada Development District and funded by a grant from the Nevada Commission on Economic Development, will help determine and market the economic development assets for the seven rural northern Nevada counties: Carson City, Churchill, Douglas, Lyon, Mineral, Pershing and Storey.
