Ready for a harsh truth? If you’re not actively encouraging economic growth, your community is dying.
Growth simply will NOT happen by itself. And for America’s small rural communities, the need for active and intentional effort is even more pronounced. On a national level, the most recent census revealed the country’s rural population has declined over the past decade. While the loss was minimal, it does mark the first time that’s happened in U.S. history over a 10-year period.
If we zoom in, the state of Kansas illustrates the issue even further: Rural counties across the state experienced anywhere from 2% to 7% population loss over the previous decade.
Fewer people, of course, is just one quantifiable symptom of a shrinking economy, which can have a dangerous ripple effect, writes The Center on Rural Innovation:
“Diminished economic growth means less money flowing through a community to support the institutions that allow a place to thrive — schools, hospitals, small businesses and cultural establishments. The economic marginalization of some rural communities has contributed to declines in educational attainment, worsening health disparities, population loss, and more.”
Yet, despite the gloom, rural communities can take steps now to turn this trend around — with utility providers and rural co-ops leading the charge. In fact, the National Rural Electric Cooperative Association commissioned a 2023 report that proves the “wide-ranging economic impact” electric co-ops can have:
“Electric cooperatives are powerful engines of economic development in their local communities,” NRECA CEO Jim Matheson said. “Affordable and reliable electricity is a key ingredient for a successful economy. Electric co-ops are focused on the long-term success of local communities as they keep the lights on and power economic growth.”
So, as a rural utility provider, what’s your role in economic development? Growth will not just happen organically; it requires a sound strategy, constant collaboration and a trusted and vested partner. You truly have an opportunity to change the prosperity of your rural communities and, in fact, have an obligation beyond just providing power. And there’s no time to lose.
Don’t Go it Alone
Economic development and regional growth can certainly feel daunting, which is why a sound strategy starts with a solid team. You won’t accomplish much on your own, so start by assembling the key players, all of whom will play a unique role:
- State economic development organizations
- Regional economic development organizations
- Local economic development organizations
- Local chambers of commerce
- City and county leaders
- Educational institutions
- Banking institutions
- Transportation providers (including railroad)
- Natural gas utility
- Water and wastewater providers
Remember: Economies are always regional, so this is the time to put aside the Friday Night Football mentality and join forces with your neighboring communities.
Some challenges and tensions are bound to come up. After all, some rural areas are served by an electric cooperative and others by a regulated utility, for example. We know they're competitors in the marketplace, but when we talk about a regional strategy, they've got to set aside their differences and realize they're working for the region as a whole. Regardless of which direction the load goes on the power lines, it’s still a win for the region.
Same goes for taxing jurisdictions, which can also create tension. Instead of focusing on who will collect the property taxes for a new project, you must realize that in a regional economy, the new dollars will be spent broadly throughout the area. Plus, even if one community gets one project, the next project may go to the town down the road. Everyone wins eventually.
By thinking regionally and working together as a cohesive region toward a unified goal, you’ll be able to create a critical mass — and that’s when you’ll be able to move the needle on real growth.
Slow and Steady – Plus a Trusted Partner – Wins the Race
Just as real economic growth isn’t achieved with the opening of just one or two retail shops, it also doesn’t happen overnight. As you began crafting a strategy with your team, your collective mindset is critical.
When our economic development team at MarksNelson starts an engagement, we want to ensure everyone involved has the appetite for a long-term strategy and the patience to play the long game.
If we find they’re just looking for quick results before the end of the current mayor’s term, we usually decide we don't want to be a part of that. We know meaningful, impactful development takes time. It takes years to build foundations and reputations and resources. Some communities have the patience, and some don't.
After working on more than 30 economic development projects, creating 2,200 new jobs, and bringing in $2 billion in new capital investment, our team has the experience and is ready to work with you to create an economic development strategy tailored for your region. By identifying your specific value proposition and evaluating your existing programs, we’ll work with you to establish partnerships and prioritize specific initiatives.
Like you, we’re community builders, and we excel at partnering with co-ops to create economic prosperity across the Midwest — navigating the complexities of industrial development, reversing economic decline and increasing employment. From attracting new businesses and project management to negotiating incentives and funding public infrastructure, our team can help you bring valuable manufacturing, tech, transportation and logistics companies to your community.
Ready to empower your region for a more promising tomorrow? Contact our team so, together, we can recharge our rural communities.
