Northeast Council of Governments Comprehensive Economic Development Strategy 2019-2023

 
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Northeast Council of Governments Comprehensive Economic Development Strategy 2019-2023
Northeast Council of Governments
          Comprehensive Economic
           Development Strategy
                 2019-2023

Prepared by: Northeast Council of Governments

416 Production Street N., Suite 1
Aberdeen, SD 57401
Phone: 605-626-2595
Fax: 605-626-2975
www.necog.org

Northeast Council of Governments: 2019-2023 CEDS   Page 1
Northeast Council of Governments Comprehensive Economic Development Strategy 2019-2023
TABLE OF CONTENTS
EXECUTIVE SUMMARY ....................................................................................................................................................................... 3

INTRODUCTION ................................................................................................................................................................................. 4
       Purpose ........................................................................................................................................................................................4
       CEDS Committee ..........................................................................................................................................................................5
       Process .........................................................................................................................................................................................6

SUMMARY BACKGROUND – ECONOMIC CONDITIONS ........................................................................................................................ 7
     Population ....................................................................................................................................................................................7
     Income..........................................................................................................................................................................................9
     Labor Force .................................................................................................................................................................................11
     Regional Economic Clusters ........................................................................................................................................................13
     Business and Economic Development ........................................................................................................................................15
     Housing.......................................................................................................................................................................................18

SWOT ANALYSIS................................................................................................................................................................................21
      Regional Survey ..........................................................................................................................................................................21
      CEDS Committee ........................................................................................................................................................................22
      SWOT Chart ................................................................................................................................................................................23

STRATEGIC DIRECTION AND ACTION PLAN ........................................................................................................................................24
       Strategy Context .........................................................................................................................................................................24
       Goals, Objectives and Strategies ................................................................................................................................................24

LOCAL, REGIONAL AND PRIVATE SECTOR INVOLVEMENT ..................................................................................................................29
        Local Level ..................................................................................................................................................................................29
        Formal Planning ..........................................................................................................................................................................29
        Project Strategies .......................................................................................................................................................................30
        Special Purpose Research ...........................................................................................................................................................30
        Regional Level.............................................................................................................................................................................31
        Statewide Level ..........................................................................................................................................................................31
        National Level .............................................................................................................................................................................32
        Private Sector .............................................................................................................................................................................32
        Summary ....................................................................................................................................................................................32

STRATEGIC PARTNERS .......................................................................................................................................................................33
       Roles…. .......................................................................................................................................................................................33
       Specific Relationships .................................................................................................................................................................34

PERFORMANCE MEASURES ...............................................................................................................................................................37
      Methodology ..............................................................................................................................................................................37
      Benchmarks ................................................................................................................................................................................37
      Adjustments ...............................................................................................................................................................................38

ECONOMIC RESILIENCE .....................................................................................................................................................................39
      Pre-disaster Preparedness ..........................................................................................................................................................39
      Economic Resilience ...................................................................................................................................................................39

APPENDIX A: CEDS COMMITTEE/GOVERNING BODY MEMBERSHIP ROSTER ......................................................................................40
APPENDIX B: ADDITIONAL REGIONAL INFORMATION ........................................................................................................................42
APPENDIX C: CEDS RESOLUTION APPROVAL ......................................................................................................................................65
APPENDIX D: LIST OF TABLES.............................................................................................................................................................66
APPENDIX E: LIST OF FIGURES ...........................................................................................................................................................67

Northeast Council of Governments: 2019-2023 CEDS                                                                                                                                             Page 2
Northeast Council of Governments Comprehensive Economic Development Strategy 2019-2023
EXECUTIVE SUMMARY
This Comprehensive Economic Development Strategy (CEDS) serves as an update of the 2013 Northeast
Council of Government (NECOG) CEDS. This update will cover the next five years. It will serve as the
basis for monitoring and evaluating the region's long term economic goals and strategies and coordinate
the economic development activities in the region. The CEDS process and document should be used as a
tool for developing goals and strategies that will guide the economic growth of the region.

The CEDS fulfills the requirements of the Economic Development Administration (EDA) as NECOG is
designated as an Economic Development District (EDD). A CEDS must be approved by the EDA for
counties and communities to be eligible for EDA funding programs. The NECOG staff and NECOG CEDS
committee worked with their member local units of government, economic development partners,
businesses, and area leaders along with input from community surveys to identify strengths and
weaknesses and update the goals, tasks, performance measures, schedule and evaluation indicators for
the region. The CEDS will assist in creating new partnerships in the region and strengthen existing ones
while promoting change and quality of life improvements for residents.

NECOG is composed of twelve counties located in Northeast South Dakota: Beadle, Brown, Campbell,
Day, Edmunds, Faulk, Hand, Marshall, McPherson, Potter, Spink and Walworth.

Key demographic/economic facts include:
     Population growth in only 4 of the 12 counties from 2010-2017
     All Counties have a median age higher than the state and national numbers
     Over 60% of the municipalities in the region are under 200 in population
     4 of 12 Counties exceed the per capita personal income of the state
     9 of 12 counties have a poverty rate below the national rate
     Unemployment rates for the region are below the national unemployment rate
     Housing values and new housing construction below state and national numbers
     Ag income dramatically affected by fluctuating commodity prices and weather conditions

The goals, objectives and strategies set forth in this document will help guide the region towards
furthered community and economic development. These goals which were developed through input
with local stakeholders and the CEDS committee are:

       To Improve, Develop, and Expand Community and County infrastructure, programs and
        facilities.
       To Improve Public and Private Economic opportunities throughout the region.
       Provide technical assistance to support public and private entities through professional staff.

The objectives, strategies and action plan for these goals are outlined further in this plan, as well as the
actions necessary to accomplish these goals. The action plan also provides performance measures to
check the region's progress.

This document strives to provide a strategy to address the weaknesses and build on the region's
strengths to improve the overall regional economy and quality of life. The document is dynamic in
nature and may change in the coming years based on the economic climate and feedback from
stakeholder.

Northeast Council of Governments: 2019-2023 CEDS                                                      Page 3
Northeast Council of Governments Comprehensive Economic Development Strategy 2019-2023
INTRODUCTION
Purpose

The Northeast Council of Governments (NECOG) is a Planning and Development District. Planning and
Development Districts were authorized in South Dakota in 1970 by executive order of Governor Frank
Farrar to promote regional cooperation and economical service delivery. Six Planning and Development
Districts currently operate in South Dakota. Each individual district is a voluntary association of
governments and operates under its own separate “Joint Exercises of Governmental Power” authorized
by South Dakota codified law 1-24. The NECOG region is comprised of the following 12 counties: Beadle,
Brown, Campbell, Day, Edmunds, Faulk, Hand, McPherson, Marshall, Potter, Spink and Walworth.

                  Figure 1: NECOG Region and South Dakota Planning District Map

NECOG has prepared this “Comprehensive Economic Development Strategy” (CEDS) to analyze the
economic and community development needs of NECOG’s twelve county region in northeast and north
central South Dakota and develop a guide for future community and economic efforts.

The CEDS document is mandated by the Economic Development Administration (EDA) and is used to
define Economic Development Districts throughout the nation. Goals and objectives are revised annually,
while the entire CEDS document must be updated to reflect regional growth and change every five years.

Northeast Council of Governments: 2019-2023 CEDS                                                Page 4
Northeast Council of Governments Comprehensive Economic Development Strategy 2019-2023
The CEDS continuous planning process involves public (government) and private for-profit and non-profit
sectors tasked with identifying short-term and long-term regional development issues/needs and
developing goals, objectives, and strategies to address economic development priorities.

The CEDS summarizes various development priorities; however its overall effectiveness as a planning tool
depends on individual local governments, organizations, and businesses. Other than the control NECOG
exercises of its own staff and operations, this CEDS is strictly advisory. NECOG continues to actively pursue
partnership oriented strategies as it works to fulfill its mission for the region, and NECOG will utilize and
promote the CEDS as a guide for regional community and economic development initiatives. The value
of the CEDS to the NECOG region is its ability:

   To accurately describe the NECOG region in terms of political, geographic, economic, and social
    relationships;
   To promote a regional view of economic and community development;
   To identify regional economic and community development issues and priorities;
   To identify technical and financial resources available for community and economic development;
   To be a relevant planning guide that evolves over time as needs change.

This CEDS is based upon a five-year planning period from 2019-2023. The success of the region and this
CEDS depends upon having strong leadership at both the regional and local levels. The region’s progress
can be measured both quantitatively, by reviewing relevant data trends, jobs created, investment, etc.,
or qualitatively, such as changes in attitudes, perceptions about the region, etc.

The CEDS is a valuable tool for identifying common challenges and opportunities. Projects can be
developed over the five-year planning period at the regional and local levels to address the identified
challenges and opportunities. It is hoped that the CEDS will become a mechanism through which more
collaboration among communities will occur to help overcome common challenges in a way that
reduces duplication of efforts and more efficiently addresses community concerns. As a tool for area
leaders, the CEDS offers both insights and information that will improve the odds of success.

CEDS Committee

NECOG’s Governing Body serves as the CEDS Committee. It has the membership characteristics to meet
EDA’s requirements including representation from the private and public sector. A membership roster is
submitted to EDA for its review on an annual basis. In addition to the committee, the CEDS relies upon
input from a variety of sources including individuals with expertise in the following areas:

       Agriculture                           Governmental Affairs                  Public/Private
       Economic                              Healthcare                             Infrastructure
        Development                           Housing                               Tourism
       Education                             Planning & Zoning
       Finance                               Private Business

The CEDS Strategy Committee is a key component in the development of the CEDS, but it is only one of
several “players” involved in economic development. The CEDS draws upon a wide ranging expertise
and works to complement existing planning efforts occurring at the state, regional and local levels.
Various communities and economic development groups within the NECOG region have undertaken

Northeast Council of Governments: 2019-2023 CEDS                                                       Page 5
Northeast Council of Governments Comprehensive Economic Development Strategy 2019-2023
their own strategic planning efforts. Where applicable, this CEDS has drawn upon these efforts as an
additional resource for identifying challenges, strengths, and potential projects. The CEDS committee
will also work closely with local development groups and other regional organizations to broaden
strategy participation and effectiveness.

Process

NECOG will incorporate several basic elements to complete a multi-faceted planning process. Each part
has a relationship to the whole regional “picture.” This document includes:

   A summary background that includes a look at the region and its economy;
   A SWOT analysis of the region;
   A set of development goals and objectives;
   A strategic direction and action plan;
   An evaluation framework for identifying performance measures;
   Economic Resiliency;

This CEDS also provides references to various resources available to assist in the implementation of the
identified objectives and proposed projects.

Upon completion, the CEDS will be available to various interested constituencies throughout the region.
NECOG will work to inform interested parties on the availability of the CEDS and its use as a planning tool.
NECOG will provide access to the CEDS through the NECOG website at www.necog.org, which will make
it freely available on an on-going basis. Each year, as the region’s needs change, NECOG’s annual Scope
of Work will also evolve in order to reflect these changes.

Northeast Council of Governments: 2019-2023 CEDS                                                     Page 6
Northeast Council of Governments Comprehensive Economic Development Strategy 2019-2023
SUMMARY BACKGROUND – ECONOMIC CONDITIONS
        Information on the region’s economic development characteristics and conditions is presented in the
        following tables. The data sets summarize changes, trends, and circumstances that directly affect the
        region’s economic development potential. Whenever possible, regional data will be compared to state
        and national numbers. This information is not intended to fully document or prove any particular points
        of view. Rather, data sets will provide a sense of how the region’s economy functions.

        Population

        The NECOG region has experienced an estimated net increase of 3.1% in population between 2010 and
        2017. Four counties experienced population growth, and two of these counties saw increases due to
        each having a large community that serves as a regional hub. The counties with the largest population
        losses are typically heavily dependent upon agriculture and isolated from larger population centers.
        Table 1 shows the changes in population of the counties within NECOG. Between 2010 and 2017, 8 of
        the 12 NECOG counties and an estimated 80% of all of NECOG communities lost population.
                                               Table 1: Population History
                                                                                                                                                %     %
                                                                                                                                             Change   Change
                                                                                                                                              2010-   1930-
County           1930        1940        1950        1960        1970        1980        1990        2000         2010          2017          2017    2017

Beadle         22,917      19,648      21,082      21,682      20,877       19,195      18,253      17,023      17,398        18,157           4.4%   -20.8%

Brown          31,458      29,676      32,617      34,106      36,920       36,962      35,580      35,460      36,531        39,178           7.2%    24.5%

Campbell       5,629       5,033       4,046       3,531       2,866        2,243       1,965       1,782       1,466         1,379           -5.9%   -75.5%

Day            14,606      13,565      12,294      10,516      8,713        8,133       6,978       6,267       5,710         5,521           -3.3%   -62.2%

Edmunds        8,712       7,814       7,275       6,079       5,548        5,159       4,356       4,367       4,071         3,919           -3.7%   -55.0%

Faulk          6,895       5,168       4,752       4,397       3,893        3,327       2,744       2,640       2,364         2,329           -1.5%   -66.2%

Hand           9,485       7,166       7,149       6,712       5,883        4,948       4,272       3,741       3,431         3,277           -4.5%   -65.5%

McPherson      8,774       8,353       7,071       5,821       5,022        4,027       3,228       2,904       2,459         2,426           -1.3%   -72.4%

Marshall       9,540       8,880       7,835       6,663       5,965        5,404       4,844       4,576       4,656         4,804            3.2%   -49.6%

Potter         5,762       4,614       4,688       4,926       4,449        3,674       3,190       2,693       2,329         2,231           -4.2%   -61.3%

Spink          15,304      12,527      12,204      11,706      10,595       9,201       7,981       7,454       6,415         6,410           -0.1%   -58.1%

Walworth       8,791       7,274       7,648       8,097       7,842        7,011       6,087       5,974       5,438         5,543            1.9%   -36.9%

NECOG         147,873 129,718 128,661 124,236 118,573 109,284 99,478                              94,881        92,268        95,174           3.1%   -35.6%
South
Dakota        692,849 642,961 652,740 680,514 665,507 690,768 696,004 754,844                                   814,180       869,666          6.8%    25.5%
United
States        123,202,624 132,164,569 151,325,798 179,323,175 203,211,926 226,545,805 248,709,873 281,421,906   308,745,538   325,719,178      5.5%   164.4%
      Sources: US Census Bureau Decennial Census 1930-2010 and 2017 Population Estimates

        Northeast Council of Governments: 2019-2023 CEDS                                                                                    Page 7
Northeast Council of Governments Comprehensive Economic Development Strategy 2019-2023
A significant issue for the NECOG rural areas is an increasingly aged population as youth out-migration
continues. In 2016, no County had a lower median age than the statewide or national median age
(Table 2). The percentage of the population over age 65 also is higher than the state and national
percentage (Table 3).

Table 2: Median Age (Years) by County                    Table 3: Population (%) over 65 by County

 County                2000        2010         2016      County                2000       2010        2016
 Beadle                40.1         41.2        38.3      Beadle               19.4%      17.3%      16.3%
 Brown                 37.2         38.6        37.7      Brown                16.2%      16.1%      15.9%
 Campbell              41.9         50.1        49.8      Campbell             22.1%      25.2%      24.3%
 Day                   42.9         47.9        48.5      Day                  23.5%      22.9%      24.9%
 Edmunds                41.6        45.7        44.5      Edmunds              22.2%      21.7%      20.1%
 Faulk                  41.5        46.9        50.0      Faulk                22.9%      23.7%      25.5%
 Hand                   43.6        48.2        48.2      Hand                 24.2%      25.3%      25.8%
 McPherson              47.6        50.8        52.3      McPherson            29.6%      29.8%      29.5%
 Marshall               41.6        43.2        41.8      Marshall             21.3%      19.1%      19.5%
 Potter                 45.8        50.6        53.5      Potter               25.0%      26.9%      28.2%
 Spink                  39.9        44.4        44.2      Spink                18.9%      20.1%      20.1%
 Walworth               42.8        47.2        44.6      Walworth             21.9%      24.0%      23.7%
 South Dakota           35.6        36.9        36.8      NECOG                19.6%      19.2%      18.9%
 United States          35.9        37.2        37.7      South Dakota         14.3%      14.7%      15.2%
Sources: US Census Bureau Decennial Census 2000-2010      United States        12.4%      13.0%      14.5%
and 2016 ACS                                             Sources: US Census Bureau Decennial Census 2000-2010
                                                         and 2016 ACS

The regional population appears to be stabilizing and possible increasing over the next ten years for the
first time since the 1930’s. The increase and stabilization of population is not seen evenly throughout the
region, but rather focused in two urban areas and a few other pocketed areas that will likely continue to
show growth. Significant population losses may still be experienced in communities with small
populations as was the case over the past ten years. It is expected that as the population of smaller
communities decline, there may be a shift into the larger communities of the county and region. These
shifts may be accelerated by the loss of a major employer or local school. Those communities under 200
in population are in the most danger of declining and they represent the largest percentage of
communities in the region as displayed in Figure 2.

                        Figure 2: Percent of NECOG Communities by Municipal Class

Northeast Council of Governments: 2019-2023 CEDS                                                     Page 8
Northeast Council of Governments Comprehensive Economic Development Strategy 2019-2023
Many of these communities once contained several competing businesses and are now fortunate to have
one viable establishment. Local schools have been consolidated and most of the school children in these
towns ride buses to the next town and many of the parents commute for work.

Another demonstration of the age demographics of the region can also be demonstrated with a
population pyramid of the NECOG region in Figure 3. A great deal of information can be determined about
the population breakdown by age and sex of an area by viewing a population pyramid. A rapidly growing
region would have a true pyramid shape. With far more young then old be represented on the pyramid.
In the NECOG region the population challenge is clear with the largest age groups falling between 45-59
years of age which would demonstrate negative population growth.

                                                   Figure 3: Population Pyramid
                                                     NECOG Region 2010

                                    85+
                                  80--84
                                  75--79
                                  70--74
                                  65--69
                                  60--64
                                  55--59
                    age cohorts

                                  50--54
                                  45--49   males                                  females
                                  40--44
                                  35--39
                                  30--34
                                  25--29
                                  20--24
                                  15--19
                                  10--14
                                    5--9
                                    0--4
                                           8   6      4     2     0       2   4      6      8
                                                                percent

Income

When looking at the percentage of people below the poverty rate, nine of the twelve counties in
NECOG’s region have poverty rates below the statewide average of 14.0%. Beadle, Day and Marshall
Counties have the highest percentages at are over 18% and three Counties are under 10%.

Northeast Council of Governments: 2019-2023 CEDS                                                Page 9
Table 4: Median Family, Per Capita Income and
                                   Percent of Persons Below Poverty
                                                 Median                  % of People
                                                  Family    Per Capita     Below
                              County             Income      Income       Poverty
                         Beadle              $     62,053   $   24,532        21.4%
                         Brown               $     69,646   $   29,463        11.0%
                         Campbell            $     61,071   $   32,814         7.6%
                         Day                 $     54,214   $   28,811        18.5%
                         Edmunds             $     75,625   $   30,123         9.8%
                         Faulk               $     73,973   $   28,975        12.6%
                         Hand                $     73,155   $   33,496         6.1%
                         McPherson           $     63,500   $   25,302        18.8%
                         Marshall            $     67,668   $   27,441        10.5%
                         Potter              $     59,674   $   30,294        10.6%
                         Spink               $     63,393   $   29,158        11.1%
                         Walworth            $     65,793   $   29,199        10.8%
                         South Dakota        $     66,825   $   27,516        14.0%
                         United States       $     67,871   $   29,829        15.1%
                       Sources: US Census Bureau ACS 2012-2016

Median Family Income in the NECOG region ranges from $54,214 in Day County to $75,625 in Edmunds
County. Five counties have Median Family Incomes exceeding the State average and four counties exceed
the national average.

                            Table 5: Median Family Income (2016 Estimate)
                                                                 Median Income    Median Income
                                                                  compared to      Compared to
                     County                       Income             State           National
            Beadle                       $       62,053                   92.9%            91.4%
            Brown                        $       69,646                 104.2%            102.6%
            Campbell                     $       61,071                   91.4%            90.0%
            Day                          $       54,214                   81.1%            79.9%
            Edmunds                      $       75,625                 113.2%            111.4%
            Faulk                        $       73,973                 110.7%            109.0%
            Hand                         $       73,155                 109.5%            107.8%
            McPherson                    $       63,500                   95.0%            93.6%
            Marshall                     $       67,668                 101.3%             99.7%
            Potter                       $       59,674                   89.3%            87.9%
            Spink                        $       63,393                   94.9%            93.4%
            Walworth                     $       65,793                   98.5%            96.9%
            NECOG                        $       65,814                   98.5%            97.0%
            South Dakota                 $       66,825                     N/A            98.5%
            United States                $       67,871                 101.6%               N/A
               Sources: US Census Bureau ACS 2012-2016

Northeast Council of Governments: 2019-2023 CEDS                                                   Page 10
The regions per capita personal income has decreased in 8 of 12 counties from 2015-2016. Per capita
personal income rates generally decreased at the highest rate in Counties with a lower population and
primarily reliant on the agriculture sector.

                                       Table 6: Per Capita Personal Income
                                                                                                      %
                                                                                                   Change
                                                                                                    2015-
          County           2000            2005          2010           2015          2016          2016
       Beadle            $ 28,357        $ 33,285      $ 39,279       $ 48,488      $ 51,081           5.3%
       Brown             $    28,608     $    37,029   $    41,832    $    49,116   $   48,978       -0.3%
       Campbell          $    26,970     $    28,569   $    36,614    $    44,676   $   42,612       -4.6%
       Day               $    22,961     $    27,024   $    37,212    $    43,051   $   43,296        0.6%
       Edmunds           $    27,112     $    35,280   $    39,286    $    44,289   $   43,136       -2.6%
       Faulk             $    27,257     $    30,077   $    41,090    $    42,133   $   41,008       -2.7%
       Hand              $    30,073     $    38,958   $    38,888    $    47,784   $   46,997       -1.6%
       McPherson         $    24,207     $    33,216   $    36,297    $    38,314   $   32,800      -14.4%
       Marshall          $    23,470     $    27,966   $    41,639    $    47,085   $   43,286       -8.1%
       Potter            $    34,608     $    45,132   $    88,664    $    87,411   $   76,181      -12.8%
       Spink             $    30,834     $    37,091   $    47,558    $    47,703   $   48,318        1.3%
       Walworth          $    24,959     $    29,789   $    38,673    $    42,011   $   42,522        1.2%
       South Dakota      $    26,808     $    33,772   $    41,063    $    47,665   $   47,834        0.4%
          Source: http://bea.gov/index.htm

Labor Force

Table 7 shows the labor force statistics for the twelve-county region over the past five years. The overall
unemployment rates have remained low in the NECOG region and the State in general. Day and
Walworth Counties were the only two counties to have unemployment rates over 4% during this time.
Presently 8 of the 12 Counties in the region have an unemployment rate higher than the statewide
average of 2.9%. Even though unemployment rates remain low, these percentages do not consider
“under-employment” factors which may include people having more than one job or someone working
below their skill level.

Labor force in the NECOG region has dropped from 51,230 in 2014 to 50,289 in 2018, a nearly 2% decrease
during this five-year period.

                             Table 7: Labor Force Statistics (June - 2014 to 2018)
                                                                                        Unemployment
               County          Year      Labor Force       Employed       Unemployed        Rate
                               2014         9,651            9,373           278            2.9%
                               2015         9,764            9,515           249            2.6%
               Beadle           2016         9,701          9,462            239            2.5%
                                2017         9,631          9,373            258            2.7%
                                2018         9,735          9,498            237            2.4%
                Brown           2014         21,166         20,589           577            2.7%

Northeast Council of Governments: 2019-2023 CEDS                                                          Page 11
2015     21,180          20,644   536   2.5%
                          2016     21,219          20,668   551   2.6%
                          2017     21,171          20,554   617   2.9%
                          2018     21,136          20,554   582   2.8%
                          2014      893             868      25   2.8%
                          2015       925            900      25   2.7%
             Campbell
                          2016       922            899      23   2.5%
                          2017       877            850      27   3.1%
                          2018       866            837      29   3.3%
                          2014      2,979          2,851    128   4.3%
                          2015      3,028          2,894    134   4.4%
               Day        2016      3,030          2,915    115   3.8%
                          2017      2,995          2,890    105   3.5%
                          2018      2,903          2,798    105   3.6%
                          2014      2,294          2,237     57   2.5%
                          2015      2,332          2,280     52   2.2%
             Edmunds      2016      2,267          2,220     47   2.1%
                          2017      2,218          2,160    58    2.6%
                          2018      2,156          2,103    53    2.5%
                          2014      1,231          1,179    34    2.8%
                          2015      1,242          1,212    30    2.4%
              Faulk       2016      1,234          1,206    28    2.3%
                          2017      1,203          1,169    34    2.8%
                          2018      1,154          1,116    38    3.3%
                          2014      1,901          1,854    47    2.5%
                          2015      1,981          1,936    45    2.3%
              Hand        2016      1,971          1,929    42    2.1%
                          2017      1,920          1,872    48    2.5%
                          2018      1,901          1,858    43    2.3%
                          2014      1,190          1,149    41    3.4%
                          2015      1,223          1,188    35    2.9%
            McPherson     2016      1,184          1,150    34    2.9%
                          2017      1,119          1,085    34    3.0%
                          2018      1,096          1,059    37    3.4%
                          2014      2,672          2,582    90    3.4%
                          2015      2,669          2,580    89    3.3%
             Marshall     2016      2,652          2,569    83    3.1%
                          2017      2,551          2,454    97    3.8%
                          2018      2,471          2,387    84    3.4%
                          2014      1,280          1,246    34    2.7%
                          2015      1,316          1,279    37    2.8%
              Potter      2016      1,287          1,257    30    2.3%
                          2017      1,237          1,206    31    2.5%
                          2018      1,205          1,168    37    3.1%
Northeast Council of Governments: 2019-2023 CEDS                         Page 12
2014        3,518       3,412          106             3.0%
                                2015        3,534       3,439           95             2.7%
                 Spink          2016        3,510       3,410          100             2.8%
                                2017        3,403       3,297          106             3.1%
                                2018        3,334       3,230          104             3.1%
                                2014        2,455      2,345           110             4.5%
                                2015        2,375      2,265           110             4.6%
              Walworth          2016        2,339      2,227           112             4.8%
                                2017        2,359      2,248           111             4.7%
                                2018        2,332      2,224           108             4.6%
                                2014        51,230     49,685         1,527            3.0%
                                2015        51,569     50,132         1,437            2.8%
                NECOG           2016        51,316     49,912         1,404            2.7%
                                2017        50,684     49,158         1,526            3.0%
                                2018        50,289     48,832         1,457            2.9%
                                2014        453872     439019         14853            3.3%
                                2015        457579     443492         14087            3.1%
            South Dakota        2016        459762     446248         13514            2.9%
                                2017        462908     447972         14936            3.2%
                                2018        466374     452671         13703            2.9%
           Source: http://dlr.sd.gov/lmic

Regional Economic Clusters

Regional Economic Clusters (RECs) are geographic concentrations of firms and industries that do business
with each other and have common needs for talent, technology, and infrastructure. RECs are a
geographically-bounded, active network of similar, synergistic or complementary organizations which
leverage their region’s unique competitive strengths to create jobs and broader prosperity. They create
a transition path from unemployment or underemployment to high-skill jobs. On average, jobs within
clusters pay higher wages. Regional industries based on inherent place-based advantages are less
susceptible to off-shoring, and create many new job opportunities for American workers. They connect
disenfranchised communities to new career and educational opportunities. They stabilize communities
by re-purposing idle manufacturing assets, engaging underutilized human capital, and contributing to
improvements in the quality of life.

Industry cluster analysis undertakes a sequence of steps to identify and locate the clusters present in a
region’s economy, as well as providing a way to gauge the clusters’ strengths and weaknesses compared
to the national economy. Such insights can assist in maintaining or increasing cluster strengths by strategic
resource targeting. Industry cluster analysis may also help identify new and emerging clusters to replace
old and fading ones.

NECOG staff utilized the analytical tools provided by the Economic Development Administration and the
universities of Indiana and Purdue via its Innovation in American Regions page on the STATS America
website. Research was conducted to gather data on industry and occupational clusters within the NECOG
Region.

Northeast Council of Governments: 2019-2023 CEDS                                                    Page 13
Table 8 shows the industry clusters in the NECOG region. Location quotients measure the concentration
  of employment in a particular cluster compared to the cluster’s employment at the national level.

  A location quotient in an industry cluster greater than 1.00 shows a higher concentration of employment
  within that cluster than in the same cluster at the national level. A LQ greater than 1.20 can be regarded
  as an industry cluster which is meeting the demands and needs of the region and exporting goods and
  services beyond the region. A LQ score between 0.75 and 1.20 shows that the industry cluster is probably
  meeting the needs of the region in terms of employment. LQs less than 0.75 show a significantly lower
  concentration of jobs in the industry cluster than the national level.

  The cluster analysis confirms that NECOG is an agricultural region. The Agribusiness, Food Processing &
  Technology cluster has an employment of over 4,300 and has grown nearly 36% since 2007. The
  Agribusiness cluster LQ is 4.46. Other clusters of importance revealed by the numbers are in the area of
  Biomedical/Biotechnical, Energy and Manufacturer Supercluster.

                                     Table 8: Industry Clusters NECOG (2007-2012)
                                          QCEW Cluster   Change     % Change    Industry Cluster   % Change      % Change
              Description                 Employment     Cluster     Cluster    Employment LQ       Cluster       Cluster
                                             2012         Emp.        Emp.           2012          Emp. LQ       Emp. LQ
Total All Industries                           42,158       1,445        3.5%                  1            0         0.0%
Advance Materials                               1,841         521       39.5%               1.41        0.55         64.0%
Agribusiness, Food Processing &
Technology                                       4,309     1,141        36.0%              4.46         1.06         31.2%
Apparel & Textiles                                  22       (84)      -79.2%              0.15         -0.2        -57.1%
Arts, Entertainment, Recreation &
Visitor Industries                               1,824       (10)       -0.5%              1.09        -0.06         -5.2%

Biomedical/Biotechnical (Life Sciences)          5,227      (500)       -8.7%              1.13        -0.29        -20.4%
Business & Financial Services                    1,909        86         4.7%              0.51            0          0.0%
Chemicals & Chemical Based Products                812       281        52.9%              1.37         0.62         82.7%
Defense & Security                               1,287       288        28.8%              0.55         0.07         14.6%
Education & Knowledge Creation                     818       115        16.4%              0.51         0.02          4.1%
Energy (Fossil & Renewable)                      2,756       367        15.4%              1.45         0.11          8.2%
Forrest & Wood Products                            230        35        17.9%              0.98         0.41         71.9%
Glass & Ceramics                                    41       (51)      -55.4%              2.25        -1.67        -42.6%
Information Technology &
Telecommunications                                927        139       17.6%               0.59         0.05          9.3%
Transportation & Logistics                        783        (26)      -3.2%               0.64        -0.02         -3.0%

Manufacturer Supercluster                        2,281      (164)      -6.7%               1.53         0.25        19.5%
Mining                                             109        41       60.3%               2.14         0.68        46.6%

Printing & Publishing                             443       (222)      -33.4%              0.67        -0.23        -25.6%
  Source: www.statsamerica.org

  Northeast Council of Governments: 2019-2023 CEDS                                                              Page 14
Business and Economic Development

Table 9 shows the taxable sales by county between 2015 and 2017, which provides a good measure of the
size of the economic output of each of the counties in the region. Brown County has by far the largest
taxable sales at nearly three times that of the next county and 51% of the total taxable sales in the NECOG
region. Nine of the twelve counties have shown a decrease in taxable sales over the past three years,
while the State of South Dakota remained relatively flat. The NECOG region represents 8% of the State’s
total taxable sales.

                                Table 9: Taxable Sales by County (2015 - 2017)
                                                                                                  Percentage
                                                                                                    Change
            County                2015                     2016                      2017         2015-2017
         Beadle            $      319,406,478       $     314,981,181       $       304,574,047        -4.6%
         Brown             $      890,353,345       $     864,466,633       $       846,674,580        -4.9%
         Campbell          $      18,327,410        $       17,992,914      $       16,404,815        -10.5%
         Day               $      81,133,075        $       77,846,648      $       86,673,233          6.8%
         Edmunds           $      53,135,564        $       52,903,593      $       54,877,589          3.3%
         Faulk             $      24,221,438        $       22,604,195      $       23,022,137         -5.0%
         Hand              $      44,100,940        $       40,599,385      $       38,808,922        -12.0%
         McPherson         $      24,556,557        $       23,296,083      $       22,777,515         -7.2%
         Marshall          $      65,258,578        $       51,391,539      $       49,033,952        -24.9%
         Potter            $      36,112,602        $       34,247,730      $       32,609,091         -9.7%
         Spink             $      72,282,457        $       72,244,397      $       73,074,885          1.1%
         Walworth          $      114,598,672       $     105,505,487       $       102,449,169       -10.6%
         NECOG             $   1,743,487,116        $   1,678,079,785       $ 1,650,979,935            -5.3%
         South
         Dakota            $ 21,019,713,154         $ 20,901,003,014        $ 21,120,502,661            0.5%
        Source: http://www.state.sd.us/drr2/businesstax/statistics/statistics.htm

The Pull Factor measures the relative strength of a community’s retail sector and is computed by:

                  Pull Factor =      City retail sales per capita
                                     State retail sales per capita

A Pull Factor higher than 1 suggests that the community is generating per capita sales with a drawing
power greater than leakages. A Pull Factor less than 1 suggests that the community’s drawing power is
less than the leakages.

There were twenty-one communities in the NECOG region with a Pull Factor higher than 1 and forty-
three communities with a Pull Factor below 1. Table 10 shows the Pull Factor for all communities within
the NECOG region for which data was available. Each county is also listed with their individual Pull
Factor.

Northeast Council of Governments: 2019-2023 CEDS                                                               Page 15
Table 10: Retail Pull Factors (2017)
                                                                        Per Capita
                                     Population                        Retail Sales    Pull
              City        County       2010        Retail Sales 2017      2017        Factor
         Cavour        Beadle               114    $         701,015   $ 6,149.25       0.46
         Hitchcock     Beadle                91    $         405,201   $ 4,452.76       0.33
         Huron         Beadle            12592     $   182,724,939     $ 14,511.19      1.08
         Wessington    Beadle               170    $       1,975,479   $ 11,620.46      0.86
         Wolsey        Beadle               376    $       2,695,254   $ 7,168.23       0.53
         Yale          Beadle               108    $         641,525   $ 5,940.04       0.44
                       Beadle            17398     $   189,717,894     $ 10,904.58      0.81
         Aberdeen      Brown             26091     $   519,382,393     $ 19,906.57      1.48
         Claremont     Brown                127    $         395,422   $ 3,113.56       0.23
         Columbia      Brown                136    $         413,953   $ 3,043.78       0.23
         Frederick     Brown                199    $         914,081   $ 4,593.37       0.34
         Groton        Brown               1458    $      11,921,212   $ 8,176.41       0.61
         Hecla         Brown                227    $       2,866,685   $ 12,628.57      0.94
         Stratford     Brown                 72    $         381,009   $ 5,291.79       0.39
         Warner        Brown                457    $         500,605   $ 1,095.42       0.08
         Westport      Brown                133    $         681,320   $ 5,122.71       0.38
                       Brown             36531     $   546,246,905     $ 14,952.97      1.11
         Herreid       Campbell             438    $       4,968,039   $ 11,342.56      0.84
         Mound City    Campbell              71    $         315,922   $ 4,449.60       0.33
         Pollock       Campbell             241    $       1,624,507   $ 6,740.69       0.50
                       Campbell            1466    $       6,932,295   $ 4,728.71       0.35
         Andover       Day                   91    $          91,305   $ 1,003.35       0.07
         Bristol       Day                  341    $       1,702,536   $ 4,992.77       0.37
         Grenville     Day                   54    $       1,003,373   $ 18,580.97      1.38
         Pierpont      Day                  135    $         476,941   $ 3,532.90       0.26
         Roslyn        Day                  183    $         819,761   $ 4,479.57       0.33
         Waubay        Day                  576    $       2,704,967   $ 4,696.12       0.35
         Webster       Day                 1886    $      41,493,669   $ 22,000.89      1.64
                       Day                 5710    $      48,297,533   $ 8,458.41       0.63
         Bowdle        Edmunds              502    $       5,655,130   $ 11,265.20      0.84
         Hosmer        Edmunds              208    $         814,815   $ 3,917.38       0.29
         Ipswich       Edmunds              954    $      11,041,678   $ 11,574.09      0.86
         Roscoe        Edmunds              329    $       5,190,656   $ 15,777.07      1.17
                       Edmunds             4071    $      22,831,814   $ 5,608.40       0.42
         Cresbard      Faulk                104    $         162,286   $ 1,560.44       0.12
         Faulkton      Faulk                736    $       8,674,320   $ 11,785.76      0.88
         Onaka         Faulk                 15    $          39,244   $ 2,616.24       0.19
         Orient        Faulk                 63    $       1,207,605   $ 19,168.33      1.42
         Seneca        Faulk                 38    $         869,337   $ 22,877.28      1.70
                       Faulk               2364    $      11,807,739   $ 4,994.81       0.37

Northeast Council of Governments: 2019-2023 CEDS                                               Page 16
Miller             Hand                    1489      $     19,193,811        $   12,890.40   0.96
         Ree Heights        Hand                      62      $         87,533        $    1,411.83   0.10
         St. Lawrence       Hand                     198      $        505,596        $    2,553.51   0.19
                            Hand                    3431      $     19,988,679        $    5,825.90   0.43
         Britton            Marshall                1241      $     17,444,857        $   14,057.10   1.04
         Eden               Marshall                  89      $        924,994        $   10,393.20   0.77
         Lake City          Marshall                  51      $      1,049,462        $   20,577.68   1.53
         Langford           Marshall                 313      $      2,840,024        $    9,073.56   0.67
         Veblen             Marshall                 531      $      1,306,225        $    2,459.93   0.18
                            Marshall                4656      $     24,233,007        $    5,204.68   0.39
         Eureka             McPherson                868      $     10,110,770        $   11,648.35   0.87
         Leola              McPherson                457      $      3,405,089        $    7,450.96   0.55
         Long Lake          McPherson                 31      $        107,995        $    3,483.69   0.26
                            McPherson               2459      $     13,682,684        $    5,564.33   0.41
         Gettysburg         Potter                  1162      $     13,168,595        $   11,332.70   0.84
         Hoven              Potter                   406      $      3,675,818        $    9,053.74   0.67
         Lebanon            Potter                    47      $        102,291        $    2,176.41   0.16
         Tolstoy            Potter                    36      $         69,143        $    1,920.63   0.14
                            Potter                  2329      $     17,016,288        $    7,306.26   0.54
         Ashton             Spink                    122      $        224,731        $    1,842.06   0.14
         Conde              Spink                    140      $        311,922        $    2,228.02   0.17
         Doland             Spink                    180      $      1,361,080        $    7,561.56   0.56
         Frankfort          Spink                    149      $      1,675,504        $   11,244.99   0.84
         Mellette           Spink                    210      $      2,001,366        $    9,530.31   0.71
         Northville         Spink                    143      $        223,882        $    1,565.61   0.12
         Redfield           Spink                   2333      $     34,389,187        $   14,740.33   1.10
         Tulare             Spink                    207      $      2,309,796        $   11,158.44   0.83
         Turton             Spink                     48      $        241,190        $    5,024.80   0.37
                            Spink                   6415      $     44,252,137        $    6,898.23   0.51
         Akaska             Walworth                  42      $        481,825        $   11,472.03   0.85
         Glenham            Walworth                 105      $        365,733        $    3,483.17   0.26
         Java               Walworth                 129      $        192,516        $    1,492.37   0.11
         Mobridge           Walworth                3465      $     55,242,531        $   15,943.01   1.18
         Selby              Walworth                 642      $      4,219,026        $    6,571.69   0.49
                            Walworth                5438      $     60,920,401        $   11,202.72   0.83
         NECOG                                     92268      $ 1,005,927,376         $   10,902.23   0.81
         South Dakota                             814180      $ 10,955,243,583        $   13,455.55   1.00
          Source: http://www.state.sd.us/drr2/businesstax/statistics/statistics.htm

Northeast Council of Governments: 2019-2023 CEDS                                                             Page 17
Housing

The importance of housing to a region’s development potential is often understated, but cannot be
overlooked. Housing conditions influence both the quality of life and economic vitality. The following
data provides a limited snapshot of housing factors.

Table 11 shows the distribution of housing units in NECOG’s region as of the 2016 American Community
Survey. The vast majority of housing units within the region are single family homes. Beadle and Brown
County have a large number of multiple family homes at 21% and 27% and this is typical for larger areas
with larger populations. Mobile home or trailer units in Potter County make up 27% of the total housing
units and are nearly twice that of any other county. Potter County has several housing areas along the
Missouri river where the predominant housing unit is a mobile home or trailer. These areas are
primarily seasonal and take advantage of the recreational opportunities that the river provides.
Remaining counties have high percentages of single family homes and in many cases lack the option of
multiple family units.

Table 11: Housing Units (2016)
                                               Percentage                Percentage               Percentage
                     Total                      of Total                  of Total     Mobile      of Total
                    Housing        Single       Housing      Multiple     Housing     Home or      Housing
    County           Units         Family         Units      Family         Units      Other         Units
 Beadle              8,376          6,298         75%         1,733         21%         345          4%
 Brown              17,471         11,492         66%         4,723         27%        1,256         7%
 Campbell             994            798          80%          46           5%          150          15%
 Day                 3,672          3,067         84%          355          10%         250          7%
 Edmunds             1,954          1,670         85%          155          8%          129          7%
 Faulk               1,199           957          80%          126          11%         116          10%
 Hand                1,817          1,499         82%          183          10%         135          7%
 McPherson           1,405          1,209         86%          110          8%           86          6%
 Marshall            2,564          2,080         81%          228          9%          256          10%
 Potter              1,553          1,020         66%          106          7%          427          27%
 Spink               3,172          2,540         80%          397          13%         235          7%
 Walworth            3,003          2,191         73%          385          13%         427          14%
 NECOG              47,180         34,821         74%         8,547         18%        3,812         8%
 South Dakota       375,866        259,240        69%        83,405         22%        33,221        9%
 United States      134,054,899    82,631,864       62%     42,859,657      32%       8,563,378      6%
Source: http://factfinder2.census.gov ACS 2012-2016

Aging housing infrastructure is a major challenge, particularly in rural areas of NECOG. Table 12 shows
the age of the existing housing stock for each county within the NECOG region based on 2016 American
Community Survey data. Regarding housing stock that dates back to 1969 or earlier, 41% of South
Dakota’s housing stock was built before 1969. All of the NECOG counties combined have 56% of housing
stock built before 1969. Brown County and Edmunds County are the lowest at 51% and 52%. Beadle,
Campbell, Faulk and McPherson all exceed 60%. In Campbell, McPherson, Potter and Walworth
Counties, each county has had 10% or less of their housing stock built between 2000 and 2016. The
State average is 19% and no county in the NECOG region meets the State’s average.

Northeast Council of Governments: 2019-2023 CEDS                                                          Page 18
Beadle     Brown      Campbell    Day    Edmunds    Faulk       Hand
Total Housing Units          8,376      17,471       994      3,672     1,954    1,199       1,817
Built 2014 or later             9         81           -       15        -         5           -
 % of Total Housing Units      0%         0%           0%      0%       0%        0%          0%
Built 2010-2013                87         755          19      50        42       18          60
 % of Total Housing Units      1%         4%           2%      1%       2%        2%          3%
Built 2000-2009                727       1,905         62     438       204       135         167
 % of Total Housing Units      9%         11%          6%     12%       10%       11%         9%
Built 1990-1999                729       1,822         69     192       211       137         100
 % of Total Housing Units      9%         10%          7%      5%       11%       11%         6%
Built 1980-1989                525       1,219         97     310       181       61          101
 % of Total Housing Units      6%         7%         10%       8%       9%        5%          6%
Built 1970-1979               1,311      2,947       143      545       290       69          314
 % of Total Housing Units     16%         17%        14%      15%       15%       6%          17%
Built 1960-1969               1,076      2,251         76     316       203       118         196
 % of Total Housing Units     13%         13%          8%      9%       10%       10%         11%
Built 1950-1959               1,022      1,517       116      324       177       167         185
 % of Total Housing Units     12%         9%         12%       9%       9%        14%         10%
Built 1940-1949                662       1,017         86     284       165       38          132
 % of Total Housing Units      8%         6%           9%      8%       8%        3%          7%
Built 1939 or earlier         2,228      3,957       326      1,198     481       451         562
 % of Total Housing Units     27%         23%        33%      33%       25%       38%         31%
                            McPherson   Marshall    Potter    Spink   Walworth   NECOG    South Dakota
Total Housing Units           1,405      2,564      1,553     3,172    3,003     47,180     375,866
Built 2014 or later             5          5           5       24        24       173        2,211
 % of Total Housing Units      0%         0%           0%      1%       1%        0%          1%
Built 2010-2013                11         37           43      65        13      1,200       11,598
 % of Total Housing Units      1%         1%           3%      2%       0%        3%          3%
Built 2000-2009                70         258          93     300       187      4,546       58,184
 % of Total Housing Units      5%         10%          6%      9%       6%        10%         15%
Built 1990-1999                58         116        161      228       249      4,072       48,480
 % of Total Housing Units      4%         5%         10%       7%       8%        9%          13%
Built 1980-1989                70         258        103      198       181      3,304       38,021
 % of Total Housing Units      5%         10%          7%      6%       6%        7%          10%
Built 1970-1979                219        371        322      476       579      7,586       63,161
 % of Total Housing Units     16%         14%        21%      15%       19%       16%         17%
Built 1960-1969                132        336        153      200       386      5,443       32,512
 % of Total Housing Units      9%         13%        10%       6%       13%       12%         9%
Built 1950-1959                155        304        182      312       383      4,844       34,065
 % of Total Housing Units     11%         12%        12%      10%       13%       10%         9%
Built 1940-1949                118        190          78     118       237      3,125       18,739
 % of Total Housing Units      8%         7%           5%      4%       8%        7%          5%
Built 1939 or earlier          567        689        413      1,251     764      12,887      68,895
 % of Total Housing Units     40%         27%        27%      39%       25%       27%         18%

    Northeast Council of Governments: 2019-2023 CEDS                                      Page 19
Table 13 shows the distribution of the existing housing stock based on home values. Approximately 32%
of the State’s housing stock had a value of $100,000 or less. In comparison nine of the twelve NECOG
counties have between 52% and 73% of the value of their housing stock below $100,000. Brown County
(29%) is the only county below the State average. This is due in large part to the age of the housing
stock as noted in the previous table.

Table 13: Housing Values (2016)
                   Total Owner                $50,000   $100,000   $150,000   $200,000   $300,000
                    Occupied        Less        to         to         to         to         to      $500,000
    County            Units       $50,000     $99,999   $149,999   $199,999   $299,999   $499,000   or more
 Beadle                4909        16.3%       30.1%     20.8%      13.9%      12.6%      5.2%       1.1%
 Brown                10,844       11.5%       17.4%     21.5%      19.4%      16.0%      11.8%      2.4%
 Campbell              556         37.1%       30.9%     14.4%      6.3%       6.1%       4.0%       1.3%
 Day                  1,863        28.8%       32.8%     10.9%      8.4%       11.0%      3.4%       4.8%
 Edmunds              1,327        26.8%       20.9%     8.7%       15.7%      16.3%      8.9%       2.7%
 Faulk                 747         29.7%       27.2%     20.3%      6.3%       5.2%       9.1%       2.1%
 Hand                 1,040        22.5%       29.3%     14.2%      14.5%      9.1%       7.3%       3.0%
 McPherson             757         42.8%       30.0%     11.0%      6.9%       4.6%       2.9%       1.8%
 Marshall             1,229        23.9%       29.9%     13.3%      12.0%      12.1%      5.9%       2.8%
 Potter                834         29.7%       33.1%     11.5%      10.1%      7.8%       5.8%       2.0%
 Spink                1,919        30.7%       32.6%     11.9%      8.0%       9.5%       4.0%       3.3%
 Walworth             1,599        24.6%       36.9%     16.6%      6.5%       7.3%       6.8%       1.4%
 NECOG                27,624       19.7%       25.4%     17.7%      14.2%      12.6%      8.0%       2.3%
 South Dakota        226,145       14.6%       17.0%     19.6%      18.4%      17.3%      9.7%       3.4%
 United States      74,881,068     8.8%        14.8%     15.3%      14.9%      18.4%      16.4%      11.4%
Source: http://factfinder2.census.gov ACS 2012-2016

Northeast Council of Governments: 2019-2023 CEDS                                                     Page 20
SWOT ANALYSIS
A SWOT analysis assesses the region for trends, characteristics and situations that might contribute to
the region’s economic growth or lead to its economic decline. Strengths and opportunities are items
that bolster the economic viability of the NECOG region, with strengths being internal positive forces
and opportunities being external elements that can lead to future economic benefit. Weaknesses and
threats are actual and perceived items that harm the region’s economy. Weaknesses are internal issues
                                           that are damaging to the economy while threats are external
                                           influences that could negatively impact the region’s ability to
                                           grow.

                                            Central to the outcome of the NECOG CEDS is identifying the
                                            strengths, weaknesses, opportunities and threats (SWOT) of
                                            the region and determining ways to capitalize on the regions’
                                            strengths and opportunities while overcoming its weaknesses
                                            and threats. The following SWOT analysis was compiled by
using a variety of inputs, including a brainstorming session of the CEDS Committee, one-on-one
discussions with the NECOG membership, the 2017 Community and Regional Economic Development
Survey instrument, and a review of relevant documents including the NECOG 2014-2018 CEDS.

Regional Survey

NECOG conducted a region-wide survey to identify local and area priorities. The survey instrument was
provided to all member organizations, economic development officials, and various community groups
and businesses throughout the region. Entities that received the survey could have an individual
complete the survey or they could complete the survey as a group. A link to the survey was also located
on the NECOG webpage and was advertised through the NECOG newsletter. The survey was conducted
in the spring of 2018, with a meeting presenting the results held June 27, 2018. During this meeting
discussion of Goals, SWOT analysis and comments were also received. Although it was not conducted to
scientific standards, the survey provides a good gauge of some of the primary issues and concerns facing
individuals, businesses and communities throughout the region. The survey focused on local and
regional economic issues and asked respondents to grade various issues that communities commonly
face and assess which of these issues require more attention or needed the most improvement.

Respondents were asked to assess the assets and challenges of the region related to attracting and
encouraging economic development.

     Most Important Local/Regional Economic Development Resources/Strength

           Quality of Life
           Recreational Attractions
           Agriculture Industry
           Available Infrastructure
           Good Schools
           Lower Cost of Living

Northeast Council of Governments: 2019-2023 CEDS                                                   Page 21
The most important resource/strength identified was that this area is a good place to live “quality of life”.
Respondents noted directly “quality of life” or items related to it such as friendly community, safe, and
outdoor opportunities. In addition, other major strengths identified were good local schools, a strong
agriculture economy, and good infrastructure.

     Major Challenges/Liabilities to Attracting and Encouraging Economic Development

           Available housing
           Population base (aging and inability to attract young workers)
           Available workforce
           Lack of funding for infrastructure
           Available retail opportunities
           Distance and isolation from markets (rural setting)

The biggest challenge/liability that was identified around the issue of housing. Comments on housing
dealt with affordable housing, lack of housing, lack of rental properties, age of properties, and lack of
available developable lots housing. Another significant issue identified was the population of the region,
which received comments for the aging population, decline in population and the difficulty in attracting
young workers back to the region.

To help address their economic and community concerns the regional survey asked respondents to
identify the top priorities to improving the local and regional economy

     Top Priorities/Opportunities to Improve Local and Regional Economy

           Strong state business climate
           Attracting new companies and/or skilled workers
           Improving access and availability to housing opportunities
           Energy Development
           Promote quality of life/low cost of living
           Maintain/enhance existing public infrastructure and facilities

The “priorities/opportunities” to success identified by respondents tend to reflect the top issues
previously identified. Improving housing opportunities and dealing with workforce were common
responses as well as promoting the region on quality of life issues and the states friendly business climate.

CEDS Committee

The CEDS Committee met and discussed the findings of the regional survey. The input and discussions of
the committee were very similar to the survey answers received. Through group discussion the
committee was involved in developing the SWOT analysis by expanding on the comments received
through the survey.

Northeast Council of Governments: 2019-2023 CEDS                                                    Page 22
Helpful                                                          Harmful
            STRENGTHS                                                WEAKNESSES
               Quality of Life                                          Population Base
                o Small Town Friendliness/Low Crime                        o Declining Overall Regional Population
                o Recreational Attractions                                 o Inability to attract and retain young workers
               Work Ethic/Productive Workforce                           o Aging population
               Agriculture Industry, jobs, resources                    Available affordable housing
               Lower Cost of Living                                      o Lack of Rural Rental Options
               Educational Facilities (Local, Post-Secondary)            o Age of Housing Stock
               Available Infrastructure                                 Available retail opportunities
 Internal

               Proximity and access to good transportation
                                                                          Distance and Isolation from markets (rural setting)
            network
               Available Land to Develop                                Parochialism (Geographic/Generational)
               Low unemployment rate                                    No Post-Secondary Technical School in the Region
               Local governments and regional organizations             Aging Infrastructure
               Available Broadband                                      Lack of Funding for Infrastructure
               Available Healthcare                                   Access to Interstate/4 Lane Highways
                                                                        Lack of employment opportunities that pay a competitive
                                                                     wage
                                                                        Availability of affordable, child care & early education
                                                                     services
                                                                     
            OPPORTUNITIES                                            THREATS
                                                                        Challenge to attract and retain young professionals and
             Strong State Business Climate
                                                                     families
                Promote Mid-Level Job Training & Vocational
                                                                          Lack of business succession planning
            Training
             Promotion of low cost of living/quality of life            Lack of understanding of manufacturing career opportunities
             Expand on Technical Education                              Lack of Available Workforce 
             Attracting new companies and/or skilled workers            Government Budgets/Political Environment
             Downtown Revitalization                                    Increased competition from outside of the region
 External

             Energy Development/Expansion                               Low Agriculture Commodity Prices
                o Ethanol, Wind, Solar, Natural Gas                       Increased cost of maintaining essential infrastructure
             Expand Public Transportation                               Worker retention
             Retain/grow existing industry & attract new industry      Lack of development opportunities due to aging rural water
            to diversify economy                                    systems
             Maintain/enhance existing public infrastructure and        Difficulty in attracting new participants in local government
            facilities                                              leadership roles 
             Improve access & availability to affordable housing
             Value Added Agriculture
                o CAFO's

Northeast Council of Governments: 2019-2023 CEDS                                                                             Page 23
STRATEGIC DIRECTION AND ACTION PLAN
Strategy Context

A strategic review of the findings of the SWOT analysis was undertaken to identify the major factors that
impact economic and community development in the region, and how strategies may be implemented to
leverage these advantages and mitigate the disadvantages.

The CEDS Action Plan will outline the goals, objectives, and strategies that represent the tangible
outcomes of the CEDS. The CEDS Action Plan focuses on those goals, objectives, and strategies that are
based upon the best analysis of current regional conditions and derived from information gathered
through the SWOT analysis, a regional survey, community assessments, communication with member
municipalities, counties and related third parties, and feedback from the CEDS Committee.

The goals, objectives, and strategies were developed through a series of processes. Initially NECOG staff
reviewed the existing goals identified in the previous CEDS document. The previous goals were discussed
by considering present information and the results of the regional survey that was conducted. Through
this process staff refined the goals into three sections Community Development, Economic Development
and Technical Assistance.

With the preliminary development of goals and objectives the staff presented the information to the CEDS
committee for further input and approval. After review of the goals and objectives by the CEDS committee
the final goals and objectives were completed.

The following goals, objectives and strategies have been identified by the CEDS Committee to promote
and support NECOG’s involvement in expanding economic opportunity throughout the region. The goals
and objectives were not prioritized and each are viewed as important to the regions development. The
goals, objectives and strategies are set within a five-year timeframe, although annual performance
assessments and adjustments may be made.

Community Development Goal: To Improve, Develop, and Expand Community and County
infrastructure, programs and facilities

       Community Development Objective 1: Provide assistance to communities, counties and other
        entities for the development and maintenance of public facilities and infrastructure systems.
       Community Development Objective 2: Provide assistance to local governments in developing
        strategic community/economic development plans, ordinances, and regulations.
       Community Development Objective 3: Provide assistance to communities, counties and other
        entities to improve access and availability of affordable housing within the region.

Economic Development Goal: To Improve Public and Private Economic opportunities
throughout the region.

       Economic Development Objective 1: Provide assistance to retain and expand existing businesses
        and industries.
       Economic Development Objective 2: Expand opportunities for Alternative Energy production
        and Value-Added agriculture.

Northeast Council of Governments: 2019-2023 CEDS                                                 Page 24
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