The Case for Economic Diversification in Summit County
Welcome to the first edition of Thayer’s Thoughts! For those of you who don’t know me, I’m Thayer Hirsh, the Executive Director of the Summit Economic Partnership (SEP). I'm thrilled to launch this monthly blog to share my insights and opinions on a variety of topics around economic development in Summit County—and hopefully entertain and engage you along the way.
In this inaugural post, I want to touch upon the state of the economy in Summit County and share why an entity like SEP is vital for our community. For those of you who love to geek out on data, I highly recommend diving into our Roadmap to Recovery report, which goes into great detail about the need for industry diversification in Summit County. But if you're more of a Cliff Notes reader, stick with me!
The median wage here is $55,640, significantly lower than the Colorado median wage of $81,068. Our neighbors in Eagle, Routt, and Pitkin counties fare much better, with wages that are 8.22%, 19.25%, and 32.52% higher than ours, respectively.
From an outsider’s perspective, Routt, Eagle, Pitkin, and Summit counties might look quite similar. We’re all picturesque mountain communities built around thriving ski resorts. So, why is Summit County lagging behind in wage growth? The answer lies in our economy’s overreliance on lower-paying tourism-based jobs. In fact, 63% of the jobs in Summit County are tied to tourism. While tourism is a fantastic asset, an overreliance on a single industry makes the local economy vulnerable to economic shocks. We saw this firsthand during the COVID-19 pandemic when Summit County lost 3,351 jobs in the accommodations and food services industries from Q2 2019 to Q2 2020.
So, why is industry diversification so important? Let’s think of it in terms of investing in stocks. Imagine you’ve put all your money into one company’s stock. If that company does well, you’re golden. But if it hits a rough patch, your entire investment is at risk. The smart strategy is to diversify—spread your investments across various sectors to reduce risk and increase stability. Similarly, by diversifying Summit County’s economy, we can ensure that we’re not overly dependent on tourism. This means nurturing non-traditional industries like software, consulting, and apparel - or providing existing local businesses with strategic consulting to help them expand. These methods, along with others we’re working on, will provide higher-paying jobs and create a more resilient local economy.
By fostering a diverse economic landscape, we’re not just safeguarding against downturns; we’re building a community where more people can thrive. And that’s what SEP is all about—creating a sustainable, prosperous future for everyone in Summit County.
Stay tuned for more insights in the coming months, and feel free to share your thoughts and questions. Until next time!