Eds & Meds

Its obvious that Nevada is at a cross roads again in terms of economic diversification.  We need it.  And everyone agrees.  We have been here several times before.  The question is  - “Will we do anything different this time?”

As many know, I believe that if we focus on the growth of “Eds & Meds” we will achieve economic diversification.  Look at Pittsburgh’s success with this program.  Not only did Pittsburgh find growth in education and healthcare, they attracted other leading industries to enter the marketplace.  Frankly, this is what turned Pittsburgh, PA around.  Unless an initiative had something to do with education or medical, the economic diversification leadership of Pittsburgh did not pay as much attention. And now Pittsburgh is an admired turn-around city.  Today, Pittsburgh has one of the lowest unemployment levels in the country and is not feeling the recession like other markets.

By following this best practice, we would improve upon the two biggest weaknesses of Nevada that stop companies from relocating here.  Nevada offers one of the best business climates in the World, but we lack in what is most important to many companies.  And that is offering families of workers a great education and quality health care. 

I remember all too well when Las Vegas and Nevada arrived at the cross roads last time, right after the September 11, 2001 tragedy.  The Las Vegas, and therefore the Nevada, economy was crushed.  Occupancy rates dropped immediately, and quickly following were room rates.  Revenues plummeted.  Projects were halted.  And the people of Nevada cried “Why did we allow ourselves to become some dependent on gaming?”  And we committed to change our dependence. 

But as soon as the gaming engine began to roar again four months later all of those cries fell on silent ears.  Nevada was back!!  And projects were now behind schedule after being put on hold for four months.  So engineering and construction companies doubled their hiring capacity to make up for lost time.  And a few looked at this job creation as diversification, because of course they were construction and professional jobs, not gaming.  But what we neglected to acknowledge was that they were tied to gaming. 

Well, here we are again.  And this time is different.  Much different.  With many projects being moth-balled for at least five years.  So those construction, engineering and architecture jobs will not be returning any time soon.  And those jobs make up our second largest industry.  Nevada DETER states that 28.7 percent of these jobs have gone away during the recession. 

So, let’s start valuing education and healthcare.  It will not only create new jobs in Las Vegas in both of these industries…..it will attract other great companies to relocate here.