Economic development assessment highlights county’s strengths and struggles

County economic development organization Muhlenberg Alliance for Progress presented an assessment study on April 21 to board members, government officials, and business leaders at Merle Travis Center in Powderly. The assessment was conducted by the Community and Economic Development Initiative of Kentucky (CEDIK) and the Center for Business and Economic Research at the University of Kentucky.

The report looks at the challenges the county faces in attracting new industry, and shines a light on assets already at work in the community. It is a combination of demographic data, interviews with local leaders, and site visits from economic development professionals.

The objective of the report is to highlight the constraints and barriers to bringing outside industry into the county, as well as identify manageable strategies that should result in short-term wins, setting the foundation for potential larger wins in the long term.

Overall, the county has challenges many rural communities face, said Dr. Alison Davis, H.B. Price Professor of Agricultural Economics at the University of Kentucky and the executive director of CEDIK. An aging population, below average workforce participation, and low educational attainment are issues that many rural counties must overcome, and Muhlenberg County is no exception.

When industry is thinking about where they’re going to locate, workforce is the top concern, Davis said. Tax incentives and available land are factors, “but most important, is will they be able to secure a workforce that can supply them with the labor they need to be productive and efficient. And that is the Number One challenge, not just in Muhlenberg County, not just in Kentucky, but nationally right now.”

The study contains data comparing the county to others in the region, and information from businesses who have recently gone through the process of choosing a site location. Most of the counties that have been able to attract new industry have larger populations, and better access to international airports or railway systems.

The report reveals a need to promote and celebrate the businesses in the county that have garnered national success, and offer more support to entrepreneurs and small business owners who already make Muhlenberg County their home base.

“It’s the rural dream, to get the next Toyota, to get the next kind of small manufacturer,” Davis said. As she did interviews, Davis heard from business owners who told her officials driving economic development in the county didn’t seem concerned about their businesses. A diverse strategy should include supporting existing businesses and encouraging entrepreneurship and innovation here in the county, Davis said.

Davis stressed the importance of a unified county to present to companies looking for a home. The assessment recommends fostering a single economic development organization representing all areas of the county, with a comprehensive plan to guide its efforts.

“As industry is thinking about where to locate, and they have to navigate politics, they’re not going to do it. There are too many other options, too many other places to go,” Davis said.

The report recommends creating a formal apprenticeship program within the county, and the importance of STEM education in schools. Those investments in workforce development are essential to attracting industry to the area, Davis said.

Some highlights in the report show public buildings, such as schools and government offices, are in good condition, there is dependable water and electric infrastructure, and above average social and human services. The athletic complex at Muhlenberg County Park is a unique asset, and unusual for a rural community, Davis said.

Having a hospital in the county is a tremendous advantage. “The CEO seems to be very engaged in the community,” Davis said. “A hospital is a huge driver of economic development in a community, so that’s wonderful, and let’s capitalize on that relationship.”

MAP board president, Peggy Williams, said the county has a good foundation to grow on. “We have great quality of life, which is always attractive to industry, and good school facilities and healthcare facilities. And the low cost of living is a strength.”

Williams said the MAP office will continue to be instrumental in connecting people, helping to match projects with locations, and working to bolster workforce training programs. She pointed to collaboration between industry and the community college to develop training programs specific to their needs, such as the recently launched aviation program.

As officials work to develop strategies for attracting new industry and supporting existing businesses, Williams said this report can be a guide to establishing concrete solutions.

The county, MAP and the Felix E. Martin Jr. Foundation, who commissioned the study, are all in the process of updating their strategic plans and will use the data found in this report to help guide their planning.

The Muhlenberg County Economic Development Assessment is available to the public by request. Contact the Muhlenberg Alliance for Progress, at 270-338-4102 to request a copy.