Lots of Tire Kickers, Few Takers

I believe the business investment environment will continue to improve over the course of this year. For now, things remain slow for most communities. Here is one example from Texas.

Despite the city’s offerings, the BEDC — a nonprofit agency contracted to "enhance" economic development — hasn’t lured a sizable new company to set up operations in Brownsville, Texas for more than a year.

Few have criticized the organization’s recruiting strategy and its return for use of $800,000 for a six-member staff operating budget and millions of dollars in incentives for incoming companies. The BEDC’s 35-member board of directors supports staff efforts.

Retail sales and home construction projects have soared, but few industrial-type jobs have been added to the payrolls. Unemployment rates in Brownsville recently hit a four-year high.

Manufacturing jobs in the city have declined from 12,800 in 1998 to 10,383 in 2002, according to the Texas Workforce Commission.

"I can’t work miracles," BEDC Chief Executive Officer Jason Clay Hilts said. "I can’t change a bad economy."

The BEDC’s plan to attract companies includes advertising in trade magazines Mexico Now, Site Development and Call Center, attending economic development trade shows, traveling to visit with prospective companies and trying to convince existing company suppliers to set up shop here.

Even recruiting telemarketing call centers — the fast food of economic development — has been difficult for the BEDC.

Read more here.