Officials: Nevada needs to continue to develop economy
Economic development is in great shape in Nevada, but two leaders in the field say the state needs to continue to work to get a bigger slice of it to provide high-paying jobs and a diversified economy.
Jonas Peterson, president and chief economic development officer of the Las Vegas Global Economic Alliance described the Southern Nevada’s current economic development effort as a brand new Corvette stuck in third gear with road construction and forks in the road in its path.
Peterson and Steve Hill, executive director of the Governor’s Office of Economic Development, made their remarks Wednesday at the alliance’s inaugural state of economic development presentation at the Mandarin Oriental.
Peterson said the state benefits by existing in one of the nation’s best corporate tax environments and by hosting 40 million tourists every year, attracting new residents and a larger work force. The area also benefits by having a young telecommunications and transportation infrastructure.
But Peterson said the state falls short when it comes to providing an educated work force and it can’t compete with other states that offer millions of dollars more in economic incentives to attract companies contemplating a move.
The state’s and the region’s shortcomings result in scores of missed opportunities. Peterson said Southern Nevada missed out on more than 200 relocation opportunities and more than 18,000 jobs as a result of several shortcomings.
He said 251 relocation prospects and 22,000 prospective jobs passed through his agency’s doors in 2014. Southern Nevada lost 5 percent of those prospects because of the Las Vegas or Nevada brand, 15 percent more because of the lack of office or industrial space, 35 percent more because of the quality and education of the work force, 20 percent more because the region was outbid with economic incentives and 13 percent because of other factors.
The remaining 12 percent — 33 companies bringing 3,800 jobs — ended up relocating to the area.
Peterson said the future is bright because more than $12 billion in capital expenditures will be made on major Southern Nevada projects in the next three years. Heading the list are the Resorts World Las Vegas resort on the Strip, $4 billion; the Las Vegas Global Business District, the $2.5 billion refurbishment of the Las Vegas Convention Center; and Project Neon, the massive $1.8 billion freeway intersection reconstruction project at the Spaghetti Bowl interchange.
Hill said the state has gone from the attitude of “any job is a good job” to being more selective about companies moving to or expanding in the state.
State legislators are expected to revisit the state’s economic incentives packages in the upcoming legislative session to require higher employee wages as a condition of receiving incentives.
“In the three years we have been doing this, we’ve gotten better aligned,” Hill said.
In the past, economic development organizations were competing with each other for companies. Now, they’re being more collaborative, noting that another city’s strengths may be a better fit for a new arrival. The collaboration is extending beyond county boundaries.
The state hasn’t lost sight of focusing on key industries. The fact that Nevada has one of the nation’s best technology infrastructures is what is enabling economic development specialists to have conversations with high-tech companies.
That’s why Hill is embracing Gov. Brian Sandoval’s bid to improve the state’s education system and focusing on science, technology and math programs that will produce graduates that will stick with local companies instead of moving away.
Contact reporter Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Find him on Twitter: @RickVelotta
