Economic study lists plusses and minuses of Evansville area

By Susan Orr

EVANSVILLE — In order for the Evansville area to move forward economically, an economic development official says, its residents need to start thinking more strategically.

"We have to understand what's important, and we have to be on the same page," said Greg Wathen, president and chief executive officer of the Economic Development Coalition of Southwest Indiana.

And Wathen hopes a regional economic study, the first part of which was made public Thursday, can help shape local thinking.

Wathen's organization commissioned the study as a way to better understand this area's assets and how to build upon them.

The study was conducted by two firms: Garner Economics of Atlanta, and Newmark Knight Frank of Chicago. It was paid for with a $231,482 federal grant secured as a result of Whirlpool's closure of its refrigerator plant here in 2010.

Part one of the study, called a Competitive Realities Report, outlines this area's strengths and weaknesses as compared to benchmark communities of Chattanooga, Tenn. and the Davenport/Moline/Rock Island area in Iowa and Illinois. It also looks at this region's demographics, labor market and industry growth.

This part of the report presents information without making any conclusions or recommendations, so it's not immediately obvious what to make of the findings, Wathen said.

"It's a guide. It's a first step and a guide," Wathen said.

Still, some of the data in the Competitive Realities Report points to the area's specific strengths and weaknesses.

According to the report, Evansville rated higher than its benchmark communities in these areas:

n Its central location, within a day's drive of two-thirds of U.S. markets

n Access to interstate highways, rail service and ports facilities

n Access to four-year and postsecondary degree programs

n Quality of K-12 and postsecondary education

n Housing costs

n Cultural resources

The area rated lower than its benchmark communities in areas that included:

n High-speed Internet service. The Evansville area ranks 368 of 370 communities nationwide based on upload and download speeds, the report noted.

n Availability of certain types of labor, including skilled industrial and clerical workers, technicians, scientists and managers

n Quality of labor/management relations

n Availability of "fully served and attractive" office and industrial sites

n Availability of venture capital for startups

n General appearance of many parts of the community. The report notes that Newburgh "shows exceptionally well," while Evansville, Princeton and Oakland City do not.

In this part of the survey, the researchers analyzed 65 factors in all. Tom Tveidt, a research economist with Garner Economics, said the factors were selected because they are the things that companies most commonly analyze when making investment and relocation decisions.

"Certain things just pop up again and again," Tveidt said.

The report, Tveidt said, was based on both economic data and on personal visits by him and the report's other authors.

More specific details, including recommendations for target growth areas, will be released later this summer, Wathen said.

The entire project will provide what Wathen described as a "road map for success."

"I think every community needs to take a hard look at itself and build a strategy based on its assets."