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Thu, Oct. 17

Building an economy through exports and imports

A primary tenet of economic development is the concept of bringing dollars into the local community through the creation of exports. The basis of any economy is the flow of dollars from the private sector into supply purchases, taxes, and labor wages, the latter of which creates the induced economic impact of household spending in the economy. Thus, increasing the stream of external dollars into the local economy is viable method used to build wealth and resources in a community.

Manufacturing is a leading industry used to create exports. In 2013, manufacturing exports in Yavapai County totaled just under $746 million (the county's greatest export is in the mining and quarrying sector which totaled just over $1 billion). The same year, the county had 184 establishments in this sector. In 2014, the sector employed 3610 individuals with an average wage of $52,300. Interestingly, due to the decline in manufacturing in the U.S. over the past 7 years, the expected effect in Yavapai County was a decrease in employment by 482 jobs. The county's competitive effect in this sector, though, actually supported 338 jobs, displaying the innate capacity of the county to support the manufacturing industry.

On the other hand, Yavapai County imported over $1.7 billion in manufactured goods, these include both supply chain needs for local manufacturers, and wholesale and retail goods for consumer purchase. Only 4.8% of the supply chain needs for this sector are satisfied locally, in other words, 95.2% of all

supply chain needs are imported from out of the region.

This lends to another tenet of economic development that is particularly important for rural communities, import replacement. By investing in an entrepreneurial culture and providing the resources necessary to support the advancement of entrepreneurship, the Yavapai community will set the stage for the self-reliant and resilient economy desired by current residents and future generations. Replacing imports is a practical method to keep dollars in the region and build a stronger economic base. Encouraging entrepreneurship is key to import replacement and producing a fruitful and sustainable future in the local economy.

Current resources across the county include the Yavapai College Small Business Development Centers, SCORE offices, Business Assistance Centers, and local Chambers of Commerce.

The Yavapai College Regional Economic Development Center provides analysis and services that facilitate economic development throughout Yavapai County and build wealth in our local communities.

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