No one's really recession proof, but North Dakota continues to argue for an exception.
When the rest of the nation was riding a boom, the state's economy was showing slow growth. When Wall Street took a dive in the most recent national economic meltdown, the state's businesses and industries stayed afloat.
There have been tough spots for specific industries. Bobcat has significantly cut back production in the face of weak demand, and with that, reduced its workforce. There are other similar stories. But across the breadth of the state's economy, the numbers have been better than the national average. The state's unemployment figures are tied with Nebraska for the lowest in the nation.
Things are slowing down here. It's part of a waiting game waiting for the economy in the region and nation to take off again so that North Dakota's goods and services will be in higher demand.
And then the important petroleum markets are doing that up-and-down dance reflected by bounces in rig counts and gas prices.
Tribune business reporter Crystal Reid in her Sunday Money column recounted the strong numbers for the local economy. Taxable sales are up, as are real estate prices. The cautionary news locally has come in housing starts they are less than a third of where they were one year ago.
While new home construction is soft, the federal stimulus dollars are starting to work their way down to major street and road projects throughout the state. As those funds churn through North Dakota's economy, they will hopefully jump start some industries or at least balance out the soft spots in the local economy.
Although North Dakota's economy remains healthy relative to its sister states, that doesn't give the state a free pass to future growth. The state has achieved its recent economic vigor based on strong strategic planning by the state, global market development, converting research to opportunity, a growing entrepreneurial spirit and simple luck. The state has diversified its business and industrial base, taking advantage of technology. The state also has benefited from the lower value of the dollar, high energy prices and high demand for agricultural commodities things that it cannot control or count on. All of these things need to continue in a positive light.
The state's work isn't done. Although the state has made marked improvements on a number of fronts, the people of North Dakota have a wish list of such items as: better wages and higher income, increased energy exports, a growing population that gives the state's young people an opportunity to stay or return home to work and live.
North Dakota is on the right track.
Posted in Editorial on Tuesday, June 23, 2009 12:00 am
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