Findings show that region’s industry base is moving toward high wage, high growth sectors
July 22, 2009
Virginia’s Region 2000 Economic Development Council (EDC) released a regional economic impact analysis this week to its board of directors showing how the local economy is slowly evolving away from an over dependence on the manufacturing sector and toward high-wage, high-growth sectors such as healthcare and professional, technical services.
The Council engaged a Richmond based firm to conduct an objective, quantitative and qualitative analysis to show how Region 2000 Partnership efforts are making an impact on the local economy. The Partnership includes six organizations each focused in different areas of economic development and regional coordination and planning.
“The business, education and local government leaders in this region felt we were doing the right things to create a supportive environment for business and this study validated that for us,” said Bryan David, executive director of the EDC. “When you look at the long-term view, it’s clear that we are pointed in the right direction to transform our economy.”
The report explored employment and wage trends by industry with the largest change occurring in the manufacturing sector. That sector shed more than 8,000 jobs from 2000-2008 for a 33.8 percent decline — a change that drove manufacturing from a 24.1 percent share of regional employment in 2000 to a 15.8 percent share in 2008. These losses were offset, however, by significant gains in healthcare, professional, scientific, and technical services, accommodation, and wholesale trade, during the same period.
The healthcare sector posted the largest absolute increase in employment, growing by 3,380 jobs, or 27.9 percent. The professional, scientific, and technical services sector saw the second largest increase in employment, growing by 2,305 jobs, or 76.2 percent.
According to the study, “Region 2000 is doing an excellent job of rebalancing its portfolio of industries and jobs away from an over-dependence on the manufacturing sector and toward the high growth, high wage sectors in healthcare and professional/technical services."
During Tuesday’s board meeting, economic development council members also looked at the latest economic numbers from 2009 and discussed the study’s context in relation to the downturn.
“Taking the historical data into account, I believe that when we emerge from this recession, we will be well positioned in the new economy and we will continue to evolve and diversify our business base,” Bryan David said.
Contacts:
R. Bryan David, Executive Director
Virginia’s Region 2000 Economic Development Council
434-847-1447
bdavid@region2000.org
Traci Blido, Communications Officer
Virginia’s Region 2000 Partnership
434-847-1447
tblido@region2000.o
