Last August Forbes magazine declared that Buffalo is one of America’s Top 10 “Fastest-Dying Cities.” And again, earlier this month, we made that Forbes top 10 list calling our city ‘miserable’. Dr. Andrew Rudnick, CEO of the Buffalo Niagara Partnership , strongly disagreed with Forbes’ “thinking” – as did so many business people and residents in our region, and spoke about it recently at one of the weekly meetings at a Buffalo Rotary Club event hosted at the HSBC Arena’s Harbour Club. I have provided some of his comments in hope that you’ll see why the magazine was so far off-base (as if you didn’t know already):
The late economist Joseph Schumpeter once called economic downturns “a good cold shower for the economic system,” because downturns such as the one we’re in can have positive effects, as they force companies to increase their efficiency, cut waste, and strive to do things in smarter ways. They force, in a word, innovation. And in this way, I strongly believe our region, which was forced by last century’s economic conditions to innovate while most of the nation was experiencing the boom that’s now busted, has a leg up on other parts of the country. Maybe that’s why we’ve been named a top spot to ride out the recession by BusinessWeek, not by Forbes.
Different national media outlets use different criteria in their rankings. Buffalo is at the bottom in some. And at the top in others, namely:
— The nation’s 5th best mid-sized market for relocating families
— The country’s 5th fastest growing real estate market
— Fourth in the nation in housing affordability
— The 3rd cleanest city in the nation
— Among the top 25 cities nationwide for cultural activities
The second largest economy in the world
The Great Lakes region, of which we’re a very prominent part, is the most important economic region in North America, and indeed, the world. Holding twenty percent of the world’s fresh water, it is also home to the second largest economy in the world, combining all or part of 12 U.S. states and Canada’s two largest provinces.
Our immediate region’s eight international ports of entry (4 auto, 3 rail, 1 water), facilitate $81 billion in annual trade between Canada and the United States. That’s nearly a third of the total trade conducted between the world’s two largest trading partners. Twenty percent of the businesses inquiries about moving a company to Buffalo Niagara come from Canada. And that’s why the Enhanced Drivers License, which became available in New York State in September is so important.
Five Business Categories are Key to Buffalo’s Economic Success
Advanced Manufacturing, Back Office, Logistics, Agribusiness, and Life Sciences are poised to becoming the region’s next steel, auto and grain distribution industries. Here’s why:
Advanced Manufacturing – $500M in investments since 1995, 100,000 skilled workers in manufacturing.
Back Office – Citibank expanded into Buffalo with 10 employees in 1976, today there is 750.
The Fifth Category, Life Sciences, Let’s Take a Closer Look
Since 2001, about 40 start-up companies have emerged in the region, and older firms have expanded or moved into the area. That’s created about 1,400 new jobs in the biotech sector, an industry that now employs about 7,000 people here – and that is not including doctors, nurses etc.
Research institutions like Roswell Park Cancer Institute, Hauptman-Woodward Medical Research Institute and the University at Buffalo have stepped up recruitment in related fields, too, and that work spawns companies. Since 2001 about 500 researchers have been recruited here, and there work has created another 1,000 jobs that directly support their research and lab work. And overall research spending in the field has soared 40 percent in five years to as much as $325 million a year.
But what do we need to do to ensure our region completes its economic transition?
So much of it has to do with people. Monday in Albany was UB day, with a big contingent of local people lobbying for UB 2020. Conservative estimates suggest 10,000 jobs will be created as a result of the UB 2020 growth plan. Plus, the growth strategy would put 13,000 additional people in downtown Buffalo every day. And then there’s the added emphasis on research: Each million dollars of federal research expenditures generates 29 jobs in the local economy. This could translate to nearly 5,000 additional jobs in Buffalo Niagara.
Once knowledge workers are here, we need to keep them here, and help them become the next leaders of our community. Buffalo Niagara 360 is the Partnership’s young professionals. It’s focused on professional development to address the needs and interests of young talent as they navigate career paths and seek to contribute more to their employers; career connections to unite employers with a larger pool of talent, while exposing students to real world experience, viable career paths, and business etiquette. More than 400 young professionals are involved in Buffalo Niagara 360 – people who are bucking the “brain drain” and who want to be here. Outside of our advocacy work, this one has received the most financial and volunteer support from our members.
The mantra of our Unshackle Upstate coalition of more than 70 business and trade organizations that represent some 45,000 employers has been “we want our economy moving, not our people” and the policies and priorities we’ve advocated have focused on stimulating the economy by making our state more business friendly.
Canada
They must balance national security with economic security. Ours is not an issue of illegal immigration, but an issue of trade and economic prosperity. We need no more than a 15 minute wait on our borders. High Skill Immigration Zones in places like Buffalo would exempt some visas from national caps, allow spouses of visa holders to work, create visa programs from RNs and expedite student and exchange visas.
What we need
We need venture funds, and help with tech transfer. We need to make efforts to protect the environment and relieve our dependence on foreign oil drivers of job creation in our communities.
Send emails easily to your government representatives
A link on our Buffalo Niagara Parnership website makes it very easy for you to tell elected officials about the reform we seek. Technology on our site enables you to email our representatives instantaneously.