State of Wright County Economy Seminar held at
Albertville City Hall on August 12, 2010

The Wright County Economic Development Partnership held a State of the Wright County Economy event at the City of Albertville Community Center on August 12 th . Professor King Banaian , Director for the Center of Economic Education at St. Cloud State University , was the featured presenter . This event was sponsored by Franklin Outdoor Advertising, the finest local outdoor advertising (including billboards) organization in the region.

The title of King Banaian 's presentation was, “Is It Really Over?” Although the economic data show that the recession ended in late 2009 or early January 2010, it doesn't feel like recovery for a number of reasons. For one thing, both the construction industry and the manufacturing industry have not recovered any of their previous employment numbers. Since both of these industries pay relatively higher wages, the effect of not getting these jobs back is affecting other industries like entertainment and retail. For another thing, the slow financial regulation changes have been affecting both banker and investor willingness to accept risk. There was uncertainty created in knowing what the new financial regulations would be and, now that we have them, how will they affect the financial deals we are doing now. Further complicating the recovery is the deleveraging of the consumer. This is causing the savings rate to be higher and keeping retail spending down. As it is measured now the Gross Domestic Product (GDP) has been growing about 2.5%. This doesn't feel like recovery, because typically recovery growth rate is about 4% increase in GDP

But we are in recovery. The index of leading economic indicators for this region bottomed out in 2009 and has been in a growth mode since then. Moreover, seasonally adjusted employment has been up since October 2009 in the St. Cloud MSA. This is the strongest indicator of increased economic activity. Unfortunately, the unemployment rate in Wright County continues to be higher than the state average.

The economic experience we have now is a “New Normal” because of a number of factors. For one thing these economic times are a unique experience. The demographics are leading to smaller families and older populations world wide. Families are tending to be more risk averse (because there are more older families) and thus they are deleveraging their risk. While retail spending and family acquisitions led the recovery before, this time it will have to be led by industry. At this time industry is also more risk adverse; but as the comfort with the new regulations and other positive economic conditions prevail, they will become more willing to take risk. At any rate, the recovery process will take longer.

The Partnership exists to enhance the business climate of Wright County and to help create more jobs in Wright County . The strategies the Partnership uses to achieve its mission include being an information resource and finding technical assistance; aiding business development through Business Retention & Expansion visits, providing financing resources, and providing business information and training through seminars and workshops. Also, the Partnership markets Wright County to business site locators, and maintains an excellent website, which includes a listing of commercial and industrial property available in Wright County (see www.wrightpartnership.org ). The Partnership also assists with Workforce Development and has gathered economic statistical information, which is available on its website.

 King Banaian & Noel LaBine