The Northern Nevada Business Weekly recently caught up with some of the region’s economic leaders to talk about the state of the economy and what residents and business leaders can expect in 2022 and beyond.
Sheldon Mudd has served as Executive Director of the Northeastern Nevada Regional Development Authority since December 2017. NNRDA’s footprint consists of Lander, Eureka, Elko and White Pine counties, which all told make up the largest geographic RDA in Nevada, covering just under 40,000 square miles.
The NNBW spoke in mid-January with Mudd about the state of — and future potential for — the economy in rural Northern Nevada. The following Q-and-A has been edited for length and clarity.
NNBW: You’ve been in the executive director role for four years now at NNRDA — what's changed the most over the past four years regarding outreach to businesses in other markets and trying to seek out attractive relocation opportunities?
Mudd: One of the biggest things that I noticed for Northeastern Nevada was just simply exposure. How do we expose the world to this area? Because I have been around the world, and when you mention a Nevada, usually one town comes to mind, sometimes two — obviously, everybody thinks Reno is just a little suburb of Las Vegas for the most part.
But what about all the rest? What about everything else out on the opposite end of the stage? So, my primary objective right off the bat was to figure out ways that we could expose ourselves more efficiently, more effectively, to not only areas around the United States, but around the world as well.
So, we immediately began upgrading our website and modernizing it and providing tools on that website to allow people to quickly be able to No. 1, see what kind of organization we are and what the area represents. But then also to be able to find specific information that they're looking for, whether they're looking for specific sites to relocate to or whether they're looking for demographics, education levels, all of those things. We pulled a lot of data and information together on our website. Especially now that we've noticed in the last two years, because everything is so virtual — obviously, we didn't anticipate what was getting ready to happen. But it's just fortuitous that we put things together in such a way it enhanced our abilities within a pandemic.
So, those were kind of the first things. With that said, there's always the same old issues that you have to address, whether it be housing or workforce or policy. We continue to go down that road, but I would say more than anything, is we really tried to enhance exposure, and it's worked. We are seeing about a 700% increase in inquiries to this area, then what we saw in 2018. Now, is that translating into big wins? No, but we're not going to get the Teslas and the Amazons, but it has translated into some development and into some new business. Unfortunately, everything takes a little more time out here for things to develop and to work on the back end.
On the front end, when it comes to permitting and it comes to getting companies through the process, that doesn't take long at all; we’re usually able to do that out here quite fast. But to get people to recognize this area, to inquire on this area, to actually take a chance, usually that takes us a little more time to get them to the table. But once we do, then it goes pretty quick. So that's definitely how we've changed our platform and our protocol (since 2018).
NNBW: Would you describe 2021 as a successful year for NNRDA, a challenging year or maybe of somewhere in the middle?
Potts: I would say probably somewhere down the middle, and that’s just because I always aim high. I’m an Air Force vet, and in the Air Force we always aim high. And unfortunately, one of the downsides to that is oftentimes you don't necessarily get to where you want to be. So, I have some pretty lofty aspirations. But, with that said, I would say probably down the middle in the sense that we have tried to evaluate the current environment as it pertains to economics, new administrations, pandemics, all those kinds of things. So we've really tried to evaluate that and adapt and adjust accordingly in order to move the needle.
We've had a couple of wins in 2021. We had a very prominent manufacturer who's producing around the world purchase some property and is anticipating construction here soon. We had some others come to the table and pretty much give letters of intent that this is where (they) want to be … and we landed the MineConnect business incubator and got that operational and running. So, we had some of those small, what I would call base hits. We are moving in the right direction. But quite frankly, we never move fast enough to my liking.
So, in light of the world around us and what's going on, you know, we’re actually moving along pretty well. The small businesses have had more resources now than they've ever had, and that's due to other business. That’s due to people like Nevada Gold Mines and other supporting mining companies who have contributed to the I-80 Fund, and (due to) nonprofits like the Rural Nevada Development Corporation who have administered those funds. It’s neighbors taking care of neighbors out here, and it has allowed for a lot of our mom-and-pop small businesses to weather the storm.
As a result, on the other end of it, we count our blessings — we are in far better shape than, than probably a lot of areas around the country. We're pressing forward, but there's still things we're working on and there are things that I would say maybe have not set us back right away, but have the potential to in the future. And so with those things, we always kind of keep our finger on the pulse there. I guess overall, we've got pretty good leadership out here in the rural areas who are trying to try to take care of us as best they can. And that's been helpful. Overall, 2021 was a year where we really had to evaluate, adapt and overcome. And I think by and large, we've come out on the top end of that with some few exceptions.
NNBW: How do you foresee Northern Nevada adapting to this one-two punch we're feeling right now when it comes to both supply chain issues and a labor shortage amid the so-called “Great Resignation?”
Mudd: Those issues that the rest of the country are facing, we face right along with everybody else, and I would say probably to bigger degree. When it comes to supply chain, remember, all of our communities for the most part are at the end of the road. I talked to our construction guys, and they said it's hard enough to be able to build in rural Nevada, but now with the supply chain issues, it’s really, really a huge obstacle. Those issues, without a doubt, are going to continue to play an enormous factor.
As a matter of fact, we've had companies in our pipelines give us the heads up, “hey, we're going to pause for six months, because we need to see what the commodity prices are going to look like … we're going to try to anticipate what that's going to look like by the time we're ready to build, or by the time we're ready to produce.” I've probably had three or four of those calls this year of people saying, “we still like Northeastern Nevada, but we're just going to hold off and see how things go.” And that all has to do with supply chain.
And then of course, workforce. People forget Northeastern Nevada has 40,000 square miles, and we have 80,000 people, so that’s 2 people per square mile. And we have plenty of jobs out here. I bet we could increase our population by at least 10,000 people, and nobody would be lacking having a job. They're just everywhere. And it’s not so much workforce issues as far as skills — I mean, that we deal with that, too, finding the right skilled labor — but it's just getting the people period, you know, having the people available to train in order to take them to the next level. So, as a result, when it comes to workforce and supply chain, I would say that our problems are probably a little bit more amplified than, than our urban counterparts.
On the flip side, when you talk about the “Great Resignation,” maybe not so much. We offer some pretty high-quality, good-paying jobs out per capita, and so we just don't necessarily deal with that issue quite as much … there are people here that would rather go from a $25 an hour job and go down to a $10 an hour job and have a job and stand on their own two feet before they'll go to the unemployment office to make $15 bucks an hour on unemployment; they just won't do it. It's just that's the mentality. We're very self-sufficient, rugged individualists
NNBW: When it comes to the housing market, median prices are rising and the middle class is being pushed out as more cash-heavy buyers flock to this region. Unlike the Great Recession, there's really no bubble that's going to burst. So, as agencies continue to attract more companies and workers, what can be done to address the housing challenges in this region?
Mudd: From a 30,000-foot level, what our legislators and agency leaders really need to do is, No. 1, we have to recognize the fact that a blanket solution over the state of Nevada is never going to work. What works and what is relevant to Summerlin outside of Vegas is not relevant and doesn't necessarily work in Jackpot, Nev. All of these policies, rules, etc., have been put into place with good intentions in order to ensure safety and continuity. However, in a lot of ways we have put ourselves in a corner, so we need to evaluate really where the bottlenecks are to building and we need to start addressing them for the areas in which they are relevant.
Quite frankly, we've got to get more flexible. We're not talking about normal issues anymore. We're talking about extraordinary housing problems. And if we don't do something about it, then we're going to be like Seattle, where you have this huge percentage of the Amazon workforce who are homeless. Which blows my mind — how can a person who's working for a worldwide, very reputable company be homeless or living in their car?
So, extraordinary problems require extraordinary solutions. Here’s an example: Jackpot Nevada, is a tiny little town, not even 1,000 people, yet when COVID hit, they were 90% unemployed. But the public works director up there told me he gets three or four calls a week asking about houses down there. There's not a house on the market in Jackpot — but there are people interested in moving there, primarily to escape Southern Idaho and the rising prices there. It's kind of the Fernley-Reno thing — “hey, I can go live 40 minutes away, and it's going to be a lot cheaper for me.”
But do you think there's a builder in Elko who wants to drive two hours to a border town in Jackpot to build? It just it doesn't make financial sense. But in the Twin Falls area, there are construction guys who say, “Oh yeah, I'd love to build down in Jackpot, but I don't want to get a Nevada contractor's license because it's difficult.” So, we've talked about reciprocating licensures — not only in construction, but in nursing and in other fields, too — but we’ve talked about, and that's it. But like in a place like Jackpot, they're only 40 minutes away from Twin Falls. So, if we allowed for reciprocating licensures, let's try it for three years and they still have to adhere to all building codes and so forth — I'm telling you, there'll be people in jackpot in a week, looking at property in order to build and address that problem.
Now, that's obviously different in the Reno-Tahoe area … and that's the problem when we try to address these issues at the state level. We usually just blanket it. So, extraordinary problems require extraordinary solutions. We have got to get creative with how we do that, and we have to be willing to test out (something new) for a year see how it works. Let's take a risk and see how it works.
NNBW: What are the top goals of the NNRDA for 2022?
Mudd: No. 1 is probably enhanced infrastructure. The biggest problems we run into hen companies are coming to us is capacity. We can’t supply enough natural gas, we can’t supply enough electricity, we don’t have enough access to the rail — so going into 2022 one of the biggest factors has to be that infrastructure piece.
No. 2 on the list is going to be housing. We’ve got to get on top of housing regulation, policy, contractor requirements, contractor boards — all of those things need a very in-depth evaluation of what needs to be done to find those extraordinary solutions I mentioned.
And probably the third goal is just to continue getting a few of those base hits, because the fact is, we can’t get the infrastructure done in a year, so if we can at least maintain this interest in this area and let people know outside of Nevada what our initiatives are — if you want to come here for your next new manufacturing facility and your timelines aren’t too tight, then we’ve got something to provide.
NNBW: Lastly, if you could go back two years before the pandemic and give business owners and community leaders a piece of advice, knowing what was to come, what would that be?
Mudd: That one’s easy: preparation. Prepare for a rainy day. And that’s for individuals, local governments and businesses. I’m an Air Force vet, I went in in 2000 to 2005, not a long time, but I was in during 9/11, and I learned something very valuable — your whole world can change overnight. And that’s what we saw (with COVID). March 16, 2020, was the tipping point, March 17 was a lot different than March 15. So, with business plans and individual budgets, the advice I would give is prepare for catastrophe. Prepare to have to adapt to an entirely new market. Prepare for whatever. And even if everyone would have done that, some folks wouldn’t have been able to weather that. But I was amazed at how quick, and I hate to say it this way, but how quick people said, “oh shoot, I’m in a bad way, what’s out there to help me?”
I grew up in a rural culture and self-sufficiency is a virtue, self-reliance is a virtue, and unfortunately I think we’re losing some of that, but the peace of mind that comes with planning and preparing for when those types of things happen, is invaluable.
I knew some business owners who actually had done that — I can think of one right off the top of my head where she said, “I prepared for times like these, and I did just fine … I rode the ebb and I got on the other side and I didn’t like it and it wasn’t fun, but I stood on my own two feet and I didn’t become depressed in the process.” So, if I were to give a piece of advice, at all levels, it would be to prepare to have to adapt to a changing market regardless of what the contributing factor is and why that market changed.
