THREATS

Changing demographics

The region’s aging population will increase the dependent population carrying cost burden and reduce size of productive-age workforce.

The region’s population decline and outmigration of its productive age population and youth will constrain economic development. This is in part a “brain drain,” i.e., the loss of individuals with advanced education and specific talents, knowledge, training, and skills from the region. Additionally, some of the region’s younger demographic leave the region to seek their education and/or employment outside of the region.

Labor force issues

The region’s labor force is decreasing in size

There are issues with workforce skills and preparedness

Age of infrastructure

Risk of failure

Cost of maintaining, repairing, and improving

May be passed on to businesses, impacting their viability and growth potential

Inadequate government financial wherewithal to support maintenance and improvement of strategic infrastructure

Potential disasters/dislocations

2020 coronavirus pandemic economic downturn dislocation

Ongoing risks of other economic dislocations caused by natural/man-made disasters, plant closures/downsizing, etc.

Innovation and Entrepreneurship

Inadequate regional capacity to catalyze innovation and new business development and growth, especially as regards technology-based, value added, and net export businesses

Threat of business relocation to other regions perceived as more friendly or facilitative to their development activities, or which offer greater technical, financial or workforce resources and incentives or less costly operating environments.

Threat of absentee ownership: Non-local owners typically are less committed to local operations and may close or relocate operations based upon financial considerations.

Inadequate succession planning: Locally owned businesses may be threatened or negatively
impacted by inadequate preparation for succession or transition.

Rural quality of life

Employees or business owners may decide to relocate based upon personal considerations related to the region’s quality of life.

Global competition and competition from other domestic regions

The region faces potential loss of businesses relocating to other areas, and potential downsizing or exit of companies impacted by foreign and domestic competition.

Economy

Although there has been somewhat of an improvement in the domestic economy, the regional economy is lagging this recovery.

Financial constraints

High cost of provision of government services

Too many levels of government (need for consolidation and service sharing)

Lower amounts of financial resources available for community projects (including infrastructure maintenance and improvements and economic development incentives)

Lack of leadership

Many smaller communities face difficulties with obtaining qualified and committed leaders with vision, expertise, and experience to occupy leadership and governance positions.