CANFIELD, Ohio – Regions across the country that have experienced consistent growth have several common characteristics, but one stands out, according to Gary Wagner, professor of economics at the University of Louisiana Lafayette and a native of Warren.
“The areas that are doing really well over the last 25 or 30 years are areas that have large research universities there,” Wagner told guests attending the Youngstown/Warren Regional Chamber’s annual meeting Thursday. “It’s leveraging the innovation and creativity you have.”
Wagner delivered the keynote speech during the event, held at the Waypoint 4180 banquet hall. He was also the recipient of one of the Regional Chamber’s Valley Champion awards at the meeting.
He noted that the Mahoning Valley could leverage talent from institutions such as Youngstown State University through partnerships with the local business community and organizations such as Lake to River Economic Development and the chamber.
Wagner said during the mid-20th century, the regions that performed well economically were dominated by large, vertically integrated corporations, such as General Motors. However, growth regions during the late 20th century through this century are areas that have a well-trained workforce, populated by small firms that can adapt quickly, well-connected to the outside world and provide amenities that improve the quality of life. Affordable housing is a draw, which presents an opportunity for the Valley.
“One of the things we’re seeing with younger workers is that younger workers are willing to move to locations where they want to live and then find a job,” he said, a reversal from decades ago.
A knowledge-driven economy has changed what drives regional economic growth, Wagner said. “Regions grow when we find ways of using our unique talents to create value that is of interest to others.”
Key to this is cultivating innovation, entrepreneurship and creativity, he said.
The most recent data, he noted, shows there is no distinct geographical pattern related to high income regions across the country. “Unfortunately, so are low-income areas. They’re located all around the U.S. as well,” he said.
Florida, for example, has some of the highest income areas and some of the lowest income areas in the country.
A Shift in Manufacturing
Among the most noticeable shifts in the United States over the past century, Wagner emphasized, is the decline of manufacturing jobs.
In 1955, approximately 32% of all jobs in the country were in manufacturing, Wagner added. Today, manufacturing jobs make up 8.6% of the total workforce. In the Valley, manufacturing jobs constitute 11.5% of the workforce.
“Starting in the 1950s, we started to see a decline in employment, and that decline continued,” he said.
That has impacted regions such as the Valley over the past 50 years, he said.
However, in 2010, manufacturing employment started to level off, arresting the trend of decline experienced during the previous 60 years. “This is automation. This is American innovation,” he said.
Although overall manufacturing employment has declined over the years, production has increased, Wagner noted. “If you were looking at output, the picture is the exact opposite,” he said. “The U.S. economy continues to produce more manufacturing goods than we ever have. We’re doing it with fewer and fewer workers.”
Moreover, American workers today are among the wealthiest in the world, Wagner added, mostly because of workforce training, education and productivity. He cited that Mississippi, the state with the lowest per capita income (approximately $51,000), is equal in per capita income to Germany, one of the wealthiest countries in Europe and the main economic driver on the continent. “U.S. workers, because of our productivity, are among the richest in the world,” he said.
Developing the Valley, Wagner said, depends on its continued connection with the region’s universities, the business community and economic development organizations. Combining these fundamental factors with the region’s strong work ethic only enhances the Valley’s opportunities for the future, he said.
“One of the things that really stands out to me about the Valley and the residents here is the strong work ethic,” he said. “Folks in the Valley absolutely have that.”
Award Presentations
In addition to Wagner, three others received the chamber’s Champion and Spirit awards during the event.
Wallace King, a co-founder of HBK CPAs & Consultants, headquartered in Canfield, received a Valley Champion Award for his dedication to the community, his service to his country during World War II and building a legacy of HBK, today among the top CPA firms in the country.
Now 101 years old, King was present to accept the award. During a video presentation, he recounted his experience growing up during the Great Depression, his service as a pilot during World War II and his return to the Valley and co-founding Hill, Barth & King during the post-war years. He retired in 1980.
“I know my name is in the firm, but it wasn’t only me,” he said. “But I had a long line of help with intelligent and hard-working young people.”
Longtime radio broadcaster Dan Rivers, who recently retired, was honored with the Spirit of the Valley Award for his tenure as a producer and daily radio talk show host for more than 40 years.
“The work you do here is really important to the Valley,” he said of the chamber. “Thank you for the great honor you have given me this morning.”
Shelley Murray, CEO of Youngstown Area Goodwill Industries, was presented with the Spirit of the Chamber Award for her dedication to improving the lives of the area’s marginalized community.
“I get to work alongside some pretty amazing people every day and a board that is relentless with the mission of Goodwill, that we will not be satisfied until we provide access and opportunities to our most vulnerable populations.”
Guy Coviello, president and CEO of the chamber, highlighted the achievements of the region over the past year, including the creation of Lake to River Economic Development, the expansion of the Youngstown Business Incubator and America Makes and improvements in the growth in the region’s labor force.
“Out of 425 metro areas in the U.S., recognized by Area Development Magazine, the Mahoning Valley ranked No. 61 for economic strength,” he said. “After losing tens of thousands of people from our labor force over many decades, from February of last year to February of this year, we gained 600.”
Pictured at top: Michael McGiffin, left, vice president of engagement and investor relations for Lake to River Economic Development, and Gary Wagner, professor of economics at the University of Louisiana Lafayette.