Enough with drive-by economic hubris

A recent report from the Ball State Center for Business and Economic Research on “footloose” companies and the apparent urgent need to focus on the economic development issue de jour—quality of place—was definitely over the top.

There’s nothing wrong with focusing on quality of place as a solution for certain situations. But to characterize a concentrated strategic approach by local economic professionals as a reckless pursuit of opportunistic “footloose” companies totally misses the mark. Numerous examples that contradict the report come to mind: the recent successful attraction of a major Canadian electron-beam sterilization company to northeast Indiana certainly had a regional framework of support, but the heavy lifting was led and done by a local economic development organization. Not long ago the $90 million WestGate @ Crane Technology Park was a stalled idea that languished on the sidelines for more than a decade—that is, until local economic development organizations got behind it.

In my experience, high-level advice such as what is sometimes offered by groups like CBER can be imprudent in its own right. One CBER staffer once confidently urged that Daviess County pursue corn-based manufacturing, given our agricultural assets. No one apparently bothered to consider the open fact that Daviess County manufacturers already utilize every single kernel of corn produced in the county. As a result, Daviess County is a net corn importer.

Further, our high-producing and prosperous Amish population in Daviess County is regularly overlooked or unaccounted for in most economic development studies, which skew forecasts and subsequent policy development. Tax increment finance is definitely not a favorite CBER tool, but it has demonstrably created many jobs and helped produce lasting and sustainable economic success. Look at the Daviess County strong employment track record during the Great Recession. Without local strategic incentives and flexible TIF funding, the story probably would be different.

One economic development solution does not fit all challenges, whether state, regional or local. Different solutions must be individually matched to different challenges. Let’s have less agenda-driven hubris and more focus on what makes Indiana a great place to work and live.

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Ron Arnold
Daviess County Economic Development Corp. executive director