New analysis from the National Association of Counties finds that more counties regained relatively healthy pre-recession levels of unemployment, economic output, and housing prices in 2015 than in 2014. However, 36% of counties saw GDP declines in 2015. NACo says most of those declines took place in small counties; 10% of the declines came from counties that produce lots of oil and gas.
GDP appeared to drop in more small South Dakota counties than in the North Dakota oil fields:
29 South Dakota counties saw GDP shrink in 2015; ten more grew less than 1.0%. Clay County, the 15th largest county by population, is the largest county that saw a GDP decline and the only county out of 18 with populations greater than 10,000 that saw such a decline. 14 of the 20 smallest counties saw GDP declines.
Even with crop prices down, South Dakota’s 14 largest counties, including 70% of the state’s population, were able to sustain economic growth. We all need to eat, but diversifying the economy beyond agriculture has helped those big counties ride out the rough ag market.
Clay County obviously needs a more diversified economy. I’d like to see growth in the area of renewable energy. Does anyone have any ideas and/or contacts?
Mark, I was surprised to see that decline. A university town should have plenty of opportunities for economic diversification; have Vermillion and Clay County in general had trouble attracting different businesses? Why would Clay County lose GDP while smaller university town Madison and Lake County would grow economically?
Go anti government pro Catholic and you can make a cool hundred grand a year or more. As there are a lot of tea party folks in our counties here, this looks like the perfect way to bridge that gdp gap. http://www.opb.org/news/series/burns-oregon-standoff-bundy-militia-news-updates/militant-says-foster-children-were-pulled-from-his-home-lavoy-finicum-burns-oregon/
This big western county has free dinner by AFP Foundation SD 1.25.16, minervas. Thats kochs right? Stephanie Maier is Expanding democracy And Free-market Economics For Grassroots Leadership Academy. 5:30-7:30pm. Yuk
Ms.Maier is attacking political correctness to grow the county apparently
We can’t grow counties on white privilege.
Mark and Cory:
That stat surprised me as well. I know one issue Vermillion has is the fact that it subsists on a 9-month economy. USD and the students are great for the local economy, but once they leave for the summer or winter breaks, things slow down pretty substantially; however, I’d assume that to be the case for any college town.
It feels like economic development comes in waves, though. You do have big employers like Masaba and Polaris on the edge of town. Retail shops and dealerships are solidly grounded in the economy. Real estate is huge and rental property owners have capitalized on the fact that USD students tend to escape the dorms after their second year. Apartment buildings have been popping up non-stop on the eastern side of town to accommodate.
I think it is safe to say that food & drink make up a huge chunk of the businesses in town, though, which is what makes the 9-month economy so troublesome. I’ve worked at Cafe Brule during the breaks and during the school year and the difference in business is night and day. But that’s not to minimize all of the great non-food shops downtown that have become community staples – Nook ‘n Cranny, Sharing the Dream, Tru Value, the Civic Council, etc.
It does seem like there have been a higher number of empty storefronts downtown as of late, though. And then there is the ongoing snafu with Eagle Creek Software.
Regarding Eagle Creek, I know one big point for bringing them to town was the prospect of retaining college students with tech degrees after graduation. And that seems to be the constant struggle for college admins, city officials, and business owners alike. It is great for the town to have this influx of students cycling in and out every four years, but it would be even better if they didn’t scurry off to Sioux Falls, Omaha, Minneapolis, or Chicago after they receive their degrees.
Mark’s mention of tapping into wind energy in the area (along the bluffs of the Mighty Mo?) as a beneficial development is something I agree with wholeheartedly as that would aid the entire region. And I think another thing Vermillion needs to start looking into is how to bring businesses to town that match up with the kind of degrees USD students are graduating with and aren’t entirely reliant on a constant stream of foot traffic throughout the year.
Maybe a local ad or graphic design agency? The Fine Arts department has been lauded year after year as of late. The Beacom School of Business is one of the best in the nation – let’s get those students an incubator and have them revitalize Historic Downtown Vermillion!
I like wind pretty much but would be concerned about rivet bluff aesthetics and eagles ect. But of course wind studies for prime locations are Important.