Unconventional in All the Right Ways: Rural Economic Development Initiatives in 2021
Local First Arizona has been a champion for localized economic development in Arizona since 2003, and in that time we’ve never seen a greater challenge to sustaining community resiliency than that posed in 2020. LFA works in partnership with communities, organizations, and businesses to bridge “traditional” economic development with models that strengthen local resilience and address disparities across urban and rural Arizona. We focus the work on unique economic development strategies that aim to keep local dollars circulating in local communities, create jobs one at a time, and build stronger connections to place for those that continue to choose Arizona as their home.
COVID-19’s Impact on Rural Development
Common development issues in rural communities across the country have escalated significantly in the wake of the global coronavirus pandemic. The winter COVID surge has spread rapidly across rural Arizona counties, with infection rates ranging over 50% to 100% higher than the statewide average.
Day after day, small businesses are closing doors with fewer visitors and even less means to pay rent and employees. Not only are there fewer jobs available, but global supply chains have also been interrupted, resulting in rural food shortages. Food banks across the state have ramped up their services due to the influx of need, but they can’t maintain this level of service indefinitely. Local schools that serve as food distribution sites have also seen a serious uptick in need and difficulties getting to children that previously utilized their services every day.
Transitioning to a home-based workforce and education system also poses challenges to rural communities given a lack of options for child care and impaired access to high speed internet. It's no small thing to say that Arizona’s rural communities have been working hard to stay afloat in the dire straits of 2020.
“Imagine spending two hours driving just to get to school or heading to a McDonald's parking lot to access the internet for a day of remote learning,” Jill Anderson in a recent Harvard EdCast interview.
Economic Development for Rural Economies requires a different set of strategies, now more than ever. Having engaged Arizona communities in countless economic development projects, LFA has identified a need for a more holistic approach to rural development going into 2021. The keystone pillars identified include Strengthening Small Business, Reimagining Tourism, Enhancing Community Health, and Clearing New Workforce Pathways.
Setting the Agenda for 2021: So, how are Arizona’s rural communities adapting to our ever-changing business environment, and is it possible to emerge stronger than before? Through hardship and collaboration, while under increasing pressure in 2020, innovations in economic development have emerged from all corners of our state.
Strengthening Rural Retail & Hospitality Small Business | Apache County
Tourism, retail, and hospitality rarely rise to the top in “key sector strategies” of traditional workforce development, yet the role these industries play in our rural economies is critical to the success of so many. Arizona tourism dollars are down 9% compared to last year and with $25.6 billion in visitor spending in 2019, that amounts to a $2.3 billion loss in 2020 with rural Arizona bearing the brunt of that impact. It is imperative that we build not only skills, but also pride in the rural retail and hospitality workforce to help rebuild this important industry.
Following up on the Economic Leakage Study completed in partnership with the Foundation for Little Colorado Revitalization and Local First Arizona, Apache County stakeholders in the Retail/Hospitality Industry met for an employer strategy session focusing on Soft Skills pain points. Their hope was to build a stronger retail and hospitality workforce, thus improving local customer service and strengthening the tourism proposition for the region.
Working through Strategy 1 of the Talent Pipeline Management model of rural workforce development, the group identified Professionalism, Self-Development, and Customer Service as primary areas of focus. As they move into Strategy 2, Data Collection, the group will be distributing a RetailWorksAZ customer service assessment to all current frontline employees to better understand where the current workforce is either strong or lacking. The final goal of this initiative will be to develop local training that directly addresses the Soft Skills deficiencies of the current and future workforce.
Promoting Agritourism to ‘Grow’ Economic Opportunity | Verde Valley
Despite economic downturns due to COVID, agritourism opportunities are still on the rise. According to the USDA, revenue from agritourism tripled between 2002 to 2017! Additionally, communities in close proximity to ‘natural amenities’ see higher revenues. Located between Phoenix and Flagstaff, the Verde Valley surrounds the beautiful Verde River where generations of farmers and ranchers have made their home. Earnestly, they have been tending to their fields, stewarding the river for ecosystem health, and producing tasty food for the community. Today, there is a strong agricultural base with over 80 producers that we can count!
Tapping into this $1 billion industry, Verde Valley producers have linked up with funding from the Town of Camp Verde and help from Local First Arizona, to launch ‘Verde Grown’- a regional agricultural marketing collaborative highlighting foods proudly grown in Camp Verde, Cottonwood, Clarkdale, Cornville, and nearby areas. The new brand - launching in Spring 2021 - will encourage regional agritourism and inspire visitors to come explore the deep agricultural roots these communities share. Keep your eyes peeled in 2021 for the Verde Grown brand launch by following us on social media.
Enhancing Community Health | Graham County
Rarely would community health enter into economic development discussions, yet “health” from a holistic perspective is imperative to the resiliency of a rural community. In February 2020, the Graham County Health Department completed their Community Health Assessment (CHA). The CHA identified three primary areas of focus: substance abuse, physical health & nutrition, and mental health. Coinciding with this report, LFA completed the United Way of Graham & Greenlee Counties strategic plan and also identified a significant need around mental health in the region. Currently, in Graham County, the population to mental health provider ratio is 2500:1. Statewide average is 790:1. This region is Underserved, forcing residents to travel to Phoenix or Tucson to access services.
With COVID-19 heightening mental health issues and concerns, a Mental Health Coalition was formed to develop solutions for three identified areas of focus which include (1) an inefficient, disconnected system of service; (2) a lack of behavioral health technicians, peer support, and counselors; and (3) youth mental health programming. In 2021, this Coalition will collaborate on the development of a localized “mental health system”, a more robust mental health workforce, and mental health programming for youth.
Clearing New Workforce Pathways | Mohave County
Many workforce discussions revolve around youth (and oftentimes, the perceived deficiencies in our younger workforce), but how many times do workforce discussions include young professionals? After experiencing an abrupt shortage of applicants for manufacturing roles in the Kingman Industrial Park due to COVID-19, the City of Kingman, Local First Arizona, and Mohave Community College convened a group of local manufacturers to address mutual challenges and to guide the development of programming for a the new Kingman Industrial Training Facility.
Through the initial steps of this project, workforce gaps were identified in Production Technicians and Electricians. Beyond that, however, a discussion about young professionals’ lack of interest in manufacturing roles became a primary area of concern. Next steps will include a focus group of young professionals currently working in manufacturing to help determine areas of opportunity for improved messaging and training to enhance the future, local manufacturing talent pipeline.
Realigning Development in Your Community: As rural leaders enter into annual budget discussions with the resiliency of their communities at top of mind, we encourage bold innovation in economic development strategies for 2021. Seek solutions that strengthen local businesses and encourage entrepreneurship, reimagine a tourism strategy where your community and its visitors will feel safe, commit to resources and programs that ensure access to quality food and healthcare, and support the retention of rural jobs in all sectors and industries recognizing that every job in rural Arizona counts.
Follow Local First Arizona in 2021 as we continue to build equitable systems for Arizona’s local businesses and communities that create a vibrant, inclusive, and sustainable Arizona economy by strengthening, supporting, and celebrating entrepreneurship, rural and urban community development, racial equity, environmental action, and food access. If your community is looking to implement innovative development strategies in 2021, we’d love to support your efforts. Email azrdc@localfirstaz.com for more information or to learn what other communities in Arizona are doing to address similar issues across our state.