Atlanta's Economy: Bold thinking will mark turnaround

Few would dispute that we’re now slogging through a pretty deep economic trough, struggling to find footholds that’ll lead us back toward some semblance of growth.

Georgia’s jobless rate shattered records last week. And a new report says our per capita income growth is dead last among big cities.

So it’s clear we’ve got work to do as a region.

Belt-tightening is a necessity for businesses and governments to survive times like these.

Fiscal prudence, though, must be paired with shrewdness and a hefty ration of boldness if the Atlanta area is to exit this terrible downturn ready to compete with all comers for economic development.

It’s good, then, that the Metro Atlanta Chamber has been strengthening its playbook for boosting economic growth in coming years.

They’ve laid out a solid multi-pronged strategy. One bullet point calls for building on the Atlanta region’s traditional strengths, such as global business or logistics firms that play off of our transportation links.

We agree with the chamber that fostering “organic” growth at existing firms seems the best bet for creating the most good jobs, at least for the next few post-recession years. Big, headline-grabbing events like the capture of NCR Corp.’s headquarters are pretty rare compared with the day-in, day-out work of attracting smaller companies or helping existing ones grow.

While quite necessary, this work by itself isn’t enough. Thus, the chamber is smartly embracing the business admonition that “the riches are in the niches.”

Their latest review of promising business sectors has led them to a sharpened focus on the best new industrial bets for the Atlanta area. The concentration of research universities here, for example, means it makes sense to push for more medical biotech and medical research firms. Other sub-sectors, such as agricultural biotech, also seem good choices for Georgia. These are growing niches that we can’t afford to ignore in recruitment efforts.

Bain & Co., which conducted the study for the chamber, reports that Atlanta is last in income growth among the 25 biggest U.S. metro areas. Our per capita income of $37,000 in 2007 pales against San Francisco’s $61,000.

Georgia with its mandatory balanced budget is thankfully not saddled with California’s problems. Still, pushing for more good-paying jobs is vital for our region.

Anyone questioning whether Atlanta needs a stronger approach to job growth should check in at the Georgia Department of Labor, which had the unenviable task last week of announcing that the state unemployment rate has hit 10.1 percent.

Sobering statistics help make it clear that the General Assembly should give real consideration to new economic development legislation, including both incentives and other tools, during the next legislative session. Georgia’s competitors such as Texas and Florida spent four times or more what we did on economic development in 2008.

Yes, it smarts to toss taxpayers’ money into an offering basket for city-shopping corporate CEOs, but that’s the reality of the game, especially during tough times when other states are aggressively pursuing economic projects.

Besides, incentives are not all that’s needed to attract businesses. Job training efforts also likely need enhancements if Georgia’s workers are to compete in today’s increasingly sophisticated workplaces.

The chamber is also right in saying that the Atlanta region needs to attract millions more of the venture capital dollars that fuel entrepreneurial startups. Historically, big players in venture capital have roosted on either coast.

The chamber’s wise to seek more of their money. We believe, though, that Atlantans in the right tax brackets should shake off a bit of their investing conservatism and put more dollars behind our hometown startups and young companies.

If the prospect of triple-digit investment returns aren’t enough, consider the civic good of helping the region grow high-paying jobs.

Surely Atlanta investors can step up more, even during hard times, and seize potentially lucrative, if risky, opportunities.

After all, bold business action is a big part of what’s gotten us this far. Who’ll help bankroll our next large steps up the economic ladder?

Andre Jackson, for the Editorial Board

In coming weeks and months, we will look at major issues Atlanta must address in order to move forward as the economy recovers. Look for the designation “Atlanta Forward,” which will identify these discussions. Send comments 
to atlantaforward@ajc.com.