Rural Economic Development --Rural Economic Development --Innovation Innovation

Infrastructure Infrastructure Investment Investment

(REDI³)(REDI³)

Dr. Hebert J. Swender, PresidentDr. Hebert J. Swender, President

Garden City Community College, KansasGarden City Community College, Kansas

&&

Mr. Dan Redd, CEO Borger, Texas, Economic Mr. Dan Redd, CEO Borger, Texas, Economic Development Corporation and Chairman of the Development Corporation and Chairman of the

High Ground of TexasHigh Ground of Texas

Leverage Existing Rural Partnerships Leverage Existing Rural Partnerships

• Local Economic Development Local Economic Development CorporationsCorporations

• Regional Economic Development Regional Economic Development Consortiums Consortiums

• Existing Rural Community CollegesExisting Rural Community Colleges• Area Business and IndustryArea Business and Industry

3 Key Factors in Real Estate and 3 Key Factors in Real Estate and

REDI³REDI³

Real EstateReal Estate

1.1. LocationLocation

2.2. LocationLocation

3.3. LocationLocation

REDI³REDI³

1.1. JobsJobs

2.2. JobsJobs

3.3. JobsJobs

5 Critical M’s for Manufacturing –Are 5 Critical M’s for Manufacturing –Are Also Rural Community College M’s!Also Rural Community College M’s!

• Money (adequate) Money (adequate) CC’sCC’s• Machines/Equipment (suitable) Machines/Equipment (suitable)

CC’sCC’s• Materials (available) Materials (available) CC’sCC’s• Methods (proven) Methods (proven) CC’sCC’s• Manpower (qualified) Manpower (qualified) CC’sCC’s

Remember The Good Old DaysRemember The Good Old Days

• When American Companies did well-- When American Companies did well-- America did well!America did well!

• When America did well--Americans did When America did well--Americans did well!well!

• What was good for Ford or General What was good for Ford or General Motors was good for the country, and Motors was good for the country, and what was good for the country was good what was good for the country was good for Ford or General Motors!for Ford or General Motors!

What Happened?What Happened?

• Most large corporations are now Most large corporations are now American in name only, but in fact are American in name only, but in fact are actually transnational.actually transnational.

• Overseas the corporate slogan is “We Overseas the corporate slogan is “We are not American Corporations, rather are not American Corporations, rather International Corporations domiciled in International Corporations domiciled in America”.America”.

““Innovation” is necessary but is not Innovation” is necessary but is not sufficient or even enough…sufficient or even enough…

• PCs , laptops, and cell phones were all PCs , laptops, and cell phones were all developed in the US, developed in the US, but none are but none are currently manufactured here.currently manufactured here.

• Manufacturing jobs (and profits) have Manufacturing jobs (and profits) have been exported.been exported.

• Consumer purchases contribute to the Consumer purchases contribute to the “Balance of Payments” –deficit.“Balance of Payments” –deficit.

Manufacturing and Agriculture is Manufacturing and Agriculture is critical because:critical because:

• Manufacturing sectors have the highest Manufacturing sectors have the highest economic multipliers.economic multipliers.

• Manufacturing provides maximum real Manufacturing provides maximum real “value added”.“value added”.

• National Defense considerationsNational Defense considerationshttp://www.economyincrisis.org/content/http://www.economyincrisis.org/content/manufacturing-impotence-worries-manufacturing-impotence-worries-national-intelligence-directornational-intelligence-director

One Example of Agricultural One Example of Agricultural Export Concern –COTTON--Export Concern –COTTON--

• US produces 18 million bales of Cotton US produces 18 million bales of Cotton annually .annually .

• However, over 50% of US Cotton is However, over 50% of US Cotton is exported to other countries.exported to other countries.

• U.S. Textile Mills consume only 4.5 U.S. Textile Mills consume only 4.5 million bales, but we use 20-24 million million bales, but we use 20-24 million bales as a nation annually.bales as a nation annually.

• (we are too dependent on other nations (we are too dependent on other nations for our finished cotton products).for our finished cotton products).

Rural Community Investment and Rural Rural Community Investment and Rural Community Colleges Provide literally more Community Colleges Provide literally more

“bang for the buck”“bang for the buck”

• Rural Communities have lower land costs.

• Rural Communities have lower building, labor, and regulatory costs.

• Rural Communities have underutilized assets.

• Rural Community Colleges have capacity for increased enrollment in existing workforce education and training programs.

• Rural Communities are generally MUCH more cost effective than in large urban areas.

General Observations General Observations

• The impact and aggregate per capita of a The impact and aggregate per capita of a program or economic increase that creates 100 program or economic increase that creates 100 jobs in a rural community is much larger than jobs in a rural community is much larger than large urban areas.large urban areas.

REDI³REDI³----in the long term protects the self- in the long term protects the self- interests of interests of even the largest urban areas. even the largest urban areas. REDI³ REDI³ helps reduce the helps reduce the in migration in migration from from the rural areas and the need to continually the rural areas and the need to continually expand urban infrastructure, e.g., roads, public expand urban infrastructure, e.g., roads, public education facilities, and emergency services—education facilities, and emergency services—these infrastructures already exist in the rural these infrastructures already exist in the rural areas.areas.

General Observations, …General Observations, …continued 2continued 2

• While 2% or less of the US While 2% or less of the US population is now directly population is now directly employed in farming, 100% of the employed in farming, 100% of the American population continues to American population continues to eat.eat.

General Observations, …General Observations, …continued 3continued 3

• Food commodity speculation and Food commodity speculation and market manipulation through market manipulation through “futures” contracts and derivatives “futures” contracts and derivatives are impacting the increasing rural are impacting the increasing rural economic and social instability economic and social instability world wide—this is a national world wide—this is a national concern.concern.

U.S. Dept. of Labor’s Trade U.S. Dept. of Labor’s Trade Adjustment Assistance Community Adjustment Assistance Community College and Career Training Grant is College and Career Training Grant is “on-target“on-target””

• TAACCCT Grants provide federal funds with measurable TAACCCT Grants provide federal funds with measurable results utilizing existing community college results utilizing existing community college infrastructure.infrastructure.

• TAACCCT Grants encourage innovation in programs TAACCCT Grants encourage innovation in programs and delivery systems resulting in capacity building.and delivery systems resulting in capacity building.

• TAACCCT Grants remove barriers between community TAACCCT Grants remove barriers between community college service delivery areas and rewards consortium college service delivery areas and rewards consortium efforts.efforts.

Rural Community Colleges are Already Providing Rural Community Colleges are Already Providing Education for Agriculture Science Programs—Education for Agriculture Science Programs—Below is Garden City Community College, KansasBelow is Garden City Community College, Kansas

Community Colleges Prepare Nearly Community Colleges Prepare Nearly 8 in 10 First Responders8 in 10 First Responders

Specialized Training--Ammonia Refrigeration:Specialized Training--Ammonia Refrigeration:Garden City Community College, KansasGarden City Community College, Kansas

  The Industrial Ammonia Refrigeration Program was established in 1996 as the first hands-on, live industrial ammonia refrigeration-training program in the U.S. It offers five-day seminars year-round, certifying refrigeration operators and Technicians from throughout the nation at three levels with training equipment provided by industry partners and grant funding. This program operates in partnership with the major trade associations of the U.S. ammonia refrigeration industry.

ConclusionsConclusions

• If a solution is to be found, which is by no If a solution is to be found, which is by no means certain, it must incorporate “data”means certain, it must incorporate “data”

• Tacit or subliminal assumptions are the most Tacit or subliminal assumptions are the most dangerousdangerous..

• The academic discipline required is The academic discipline required is Econometrics.Econometrics.

• Rural communities and their two-year colleges Rural communities and their two-year colleges are ready, willing, and most certainly able to are ready, willing, and most certainly able to deliver economic, educational and workforce deliver economic, educational and workforce training, resulting in nation-wide and even training, resulting in nation-wide and even global prosperity—global prosperity—REDI³ REDI³

Our FUTURE—Get Our FUTURE—Get REDI³REDI³

• It’s a good idea to take an interest It’s a good idea to take an interest in the future—that’s where you will in the future—that’s where you will spend the rest of your life!spend the rest of your life!

……..Dan Redd, 2011..Dan Redd, 2011