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Showing posts from May, 2013

Better Fire Protection, More Jobs

Every fire district is graded based on ISO's (Insurance Services Organization) PPC (Public Protection Classification) evaluation. The better the district's PPC, the greater chance businesses and homeowners save money on their insurance premiums. That's because insurance companies use PPC data for marketing, underwriting, and to establish fair premiums for homeowners and commercial fire insurance.

While the direct effects of a high PPC are better fire protection, fewer fire losses, and lower insurance premiums, one large indirect effect is encouraged business investment due to the lower insurance premiums. And if property owners (both home and commercial) spend their savings in the community, that money helps improve the local economy. As an added benefit, communities with better fire protection often find it easier to attract new businesses therefore increasing jobs, growing the revenue base, and achieving a competitive advantage.

Fire services not only constitute an impor…

The 3 I's of Economic Development

The 3 I's of Economic Development. Where one or more the 3 I's is at a stage of growth, increase, or improvement,  the better off a community is likely to be. This means that jobs are created, the tax base is expanding, and a higher quality of life is being enjoyed by citizens. The more of the three, the greater the likelihood that economic prosperity is either being enjoyed or will be enjoyed by the respective benefitting region.
Infrastructure- The physical support system needed for the delivery of goods and services. It includes water, sewer pipes, roads, bridges, cables, water, telecommunications, power, and sewage treatment plants. Infrastructure is essential to ALL businesses and citizens alike. The better a region's infrastructure, the more favorable that community is to business and commerce.Investment- Jobs are created when businesses invest. Typically these investments include equipment and machinery and the people to operate them, sales people, managers, and oth…

Waves, Ripples & Multipliers

Throw a rock in the water and what do you get? Waves. A constant, outward stream of ripples stemming from the initial point of where the rock hit the water. The rock hitting the water is the initial activity and the ripples are the effects of the rock hitting the water's surface.

The same is true in economics. One activity triggers a wave of other activities. "Multiplier" is the name we give to those consequential activities. A multiplier is any activity that spurs other spin-off activities, or ripple effects. We use multipliers (in the form of a ratio) to determine the economic impact of a certain activity, such as a plant choosing to locate in your community, a big music festival coming to town, or even the money you spend from your paycheck.

Economics is all about linkages. Business sectors and industries that have large multipliers are those that are greatly linked to other forms of spending and investment, whether directly or indirectly. For example, the manufactur…

Investment Creates Jobs

Investment creates jobs. When a particular region or community is favorable to a particular industry sector or company, it will choose that specific place to build a facility and conduct its' operations. These investment dollars go towards building the actual facility, utilities, sanitary sewer, water, telecommunications, equipment, and other business needs. One of the most important metrics of these sorts of investments is the number of jobs created. This is the metric that media outlets and politicians love to broadcast.
It's actually the private investment dollars that communities and economic development entities compete for. That's because investment is usually a direct indicator of confidence and growth.
In a nutshell, here is a basic description of the job creation process: 1) A plant expansion, location, or re-location requires new machines and machine operators. 2) New machines increase output, which necessitates more inventory handlers, shippers, salespeople, mana…