Building a Stronger Summit: How Economic Diversification Keeps Our Locals, Local
In June’s blog, I delved into Summit County’s relatively low wages and highlighted the pressing need for economic diversification. Today, I want to share how diversifying our local economy can stabilize it by reducing our reliance on tourism through the creation of new jobs and industries. Diversification has been successfully done by towns, cities and even states throughout the United States. The goal with Economic diversification is to build resiliency in Summit’s and make sure it’s a place where locals can continue to call Summit home.
Why We Should Pursue Economic Diversification
1. Higher Wages
Let’s face it—it’s expensive to live in Summit County. With wages that are 31% lower than the state average, many locals are finding it difficult to remain here. Economic diversification is proven to create higher-paying jobs. When an economy depends on a single industry, such as tourism in Summit County, wages tend to stagnate at lower levels. However, by encouraging companies in fields like technology, outdoor goods and engineering, we can boost average incomes. Let's remember that Summit boasts one of the highest-educated workforces in the country, making us well-positioned to attract these industries and companies.
2. Career Growth
Diversification also fosters job laddering—the ability for workers to move up within a company or industry. Unfortunately, job laddering opportunities are scarce in Summit County. While plenty of entry-level positions are available, there are far fewer opportunities to advance and build a long-term career. By diversifying our economy, we can create more opportunities for professional growth and career development.
3. More Stable Jobs
Seasonal employment, which is often tied to the tourism industry, can lead to income instability and uncertainty for workers, making it difficult to plan for the future or sustain a year-round livelihood. By diversifying the economy and encouraging industries that offer consistent, year-round employment, we can provide residents with more reliable income streams and career development opportunities. This not only enhances the financial well-being of individuals and families but also strengthens the community as a whole by retaining talent, reducing turnover, and fostering a more resilient and sustainable local workforce.
Examples of Successful Economic Diversification
Denver
Back in the early 1980s, Denver was known as a "Cow Town," heavily reliant on the oil and gas industry. While this industry provided excellent jobs during boom times, the busts brought severe downsides and turmoil. After the oil glut in the mid-80s, which led to another economic bust, both Denver and the state sought to diversify their economies. They leveraged government-funded agencies like OEDIT to attract and cultivate industries such as aerospace, telecom, healthcare, and tech. Over the past 40+ years, this diversification has paid off, with the oil and gas industry now making up just 3.3% of Colorado’s GDP.
Strategies for Summit County
To emulate these successes, Summit County can adopt several strategies:
Encouraging Our Entrepreneurs:
By providing programs like the Summit Founder’s Coopetition, we give locals the resources to grow their non-traditional businesses right here in Summit. The Summit Founder’s Coopetition is more than just a traditional business competition—it’s a platform for collaboration and innovation. This ongoing initiative targets early stage entrepreneurs eager to launch and scale their companies. What sets our coopetition apart is its emphasis on 'coopetition,' a blend of cooperation and competition. Participants collaborate, share insights, and support one another while striving for excellence.
Selected local companies benefit from a robust support system, including one-on-one mentorship from experienced business leaders, access to essential resources, and opportunities to connect with potential investors and industry experts. By creating an environment where new ventures can learn from each other and leverage collective knowledge, we are nurturing a dynamic entrepreneurial ecosystem. The coopetition not only supports individual business growth but also strengthens the overall economic fabric of Summit County.
Economic Gardening Program: Enhancing Established Businesses
Supporting new ventures is crucial, but it’s equally important to empower the businesses already contributing to our local economy. Our Economic Gardening Program focuses on providing established businesses with advanced tools and strategies to help them grow and adapt in a competitive market.
The program offers a range of services tailored to the needs of mature businesses, including in-depth market research, competitive analysis, and strategic planning assistance. By equipping businesses with these resources, we help them identify new opportunities, streamline operations, and expand their market presence. The goal is to facilitate sustainable growth and ensure that our existing businesses thrive amidst evolving economic conditions.
Summary
Economic diversification in Summit County is essential to stabilizing the local economy, reducing dependence on tourism, and creating higher-paying jobs. By encouraging industries like technology and professional services, we can increase wages and provide more career advancement opportunities, helping residents build long-term careers. This approach also makes it more affordable for locals to remain in the community. Drawing inspiration from Colorado's successful diversification efforts, Summit County can implement strategies like supporting entrepreneurs through initiatives like the Summit Founder’s Coopetition and aiding established businesses via the Economic Gardening Program. These efforts will foster a stronger, more resilient local economy.