Another View: Atlanta must hone its efforts to recover

By David Ratcliffe

Are we focused on the right things?

That’s the critical question behind the Metro Atlanta Chamber’s New Economy Task Force.

For six months, we’ve been working with Bain & Co. to analyze our economic development and public policy strategies and make sure they’re aligned with the “new economy’s” realities.

As Alan Colberg of Bain says, this recession is different, and coming out of it may be harder and take longer.

Why?

First, much of the growth in the past 30 years was credit-driven. With credit drying up, the post-recession recovery period will see slower growth. That means increased competition among cities for every new job.

Secondly, other states have dramatically increased their investment in economic development.

Finally, the industries that had been successful in the past might not be the same moving forward.

So what do those marketplace realities mean for Atlanta? Which industries should we target for new job growth? And what policies will attract them?

After studying 130 industries with high-growth potential, high salaries and alignment with Atlanta’s natural strengths, Bain gave us some reassuring news: The technology, bioscience and supply chain/logistics industries — our historical targets — are still right for Atlanta. And transportation, education and water remain the critical policy issues.

But now we need to focus our efforts. Rather than casting a big net for technology or bioscience companies, for instance, we must cast a smaller net for specific subsegments of those industries. And we must push for initiatives that support our job-growth strategy, including incentives, work force development and capital.

We also must renew our focus on helping existing companies grow and attracting business services firms such as consultants, lawyers and architects.

We’ve got some work to do at home, too. Bain said companies considering a move to Georgia want a fast, coordinated response. The message was clear: We need greater cooperation and collaboration among all the entities that play a role in economic development.

With the close working relationships among the Metro Atlanta Chamber, Georgia Chamber of Commerce, Georgia Department of Economic Development, and other chambers and economic development authorities, we’ve already made great strides there.

But we can do better. And there’s a burning reason we must: Although the economic development strategy of the Chamber and its partners has been successful — contributing to a quarter of the region’s new job growth in the past decade — per capita income growth has lagged.

In fact, in the past decade, per capita income growth in metro Atlanta was last among the nation’s 25 largest metros — in part because employment growth has not kept up with population growth.

Now is the time to sharpen our strategy, help our existing companies grow, adopt progressive state policies and collaborate across the region and state.

If we do that, metro Atlanta and Georgia will not only survive the recession but continue to thrive.

David Ratcliffe is chairman, president and CEO of Southern Co.