March 1, 2000
MiBiz West

MUSKEGON - Economist George A. Erickcek of the W.E. Upjohn Institute for Employment Research is cautioning Muskegon County business leaders that only a concentrated economic development strategy can keep the area moving forward.

Erickcek's comments come as Muskegon Area First (MAF), the county's newly formed economic development organization, begins its strategic planning process.

"Muskegon Area First is good, but if its economic development strategy is ineffective, it could slow down the economy," Erickcek said.

One element of a positive strategy is to keep funding "broad based" and a mixture of private and public funds. Economic development leaders should also look beyond county boundaries, Erickcek said. "A successful economic development project here will benefit Grand Haven, for example. There should be stronger ties with Ottawa County."

Muskegon County is positioned for future success, according to the economist. Construction of the Grand Valley State University Water Resources Institute's Lake Michigan Center, The Lakes Mall retail complex and the Balcom's Cove condominium project are all bright spots, said Erickcek.

According to his W.E. Upjohn forecast, Muskegon will see continued, but slowing, employment growth. A 2.9 percent rise in total employment in 1999 is expected to drop slightly to 2.1 percent in 2000 and 1.6 percent in 2001.

"The only way jobs can be sustained and grow is if firms remain competitive," Erickcek said. One way to keep companies competitive through productivity gains is to create linkages between the educational system, training organizations and employers. Muskegon County should use that employment linkage as an economic development tool, urged Erickcek. "Look for jobs for everyone to do," he said.

Muskegon County can also tap into the state government's push to attract high-tech firms to Michigan, if area leaders are willing to work at it. "Muskegon's quality of life is strong, but high-tech depends on the workforce. High-tech jobs focus on four-year college degrees," Erickcek said. "Muskegon needs to take advantage of Muskegon Community College and other universities for programs."

As for the business community's role in attracting high-tech industries, Erickcek said, "Entrepreneurs do not move. They depend on networking. Do you have industries here to act as incubators for entrepreneurs? You need to look at your industrial structure to see if there's a place for entrepreneurs."