Cooperation breeds success

Firm: Development agencies should be working together so Texarkana area can reach next level

William H. Fruth, president of POLICOM, an independent economic research firm, makes a presentation Tuesday, April 26, 2016 on strategies to improve economic development in the Texarkana area.
William H. Fruth, president of POLICOM, an independent economic research firm, makes a presentation Tuesday, April 26, 2016 on strategies to improve economic development in the Texarkana area.

Texarkana has several economic development agencies but better cooperation will help the area fully realize its potential, an official said Tuesday.

"All of them need to be working together, the Chamber of Commerce, TexAmericas Center, all of them need to cooperate to get this done," said William H. Fruth, president of POLICOM Corp., an independent economics research firm.

He further indicated that multiple economic assets exist to take the area to the next level, but at this time they don't necessarily work in concert. 

Fruth spoke during an economic summit at the Texarkana Convention Center. The summit was sponsored by Southwestern Electric Power Company in partnership with Texarkana Chamber of Commerce and TexAmericas Center.

In a regional economic breakdown, Fruth cited Bowie County as one of the strongest economic areas within the region.

"One way to measure the strength of a local area is to measure the populace, how many who live there versus how many who work there. In Bowie County, the majority who work there also live there (72 percent). Also, many come from surrounding counties to work there," Fruth said.

"Also, a large percentage of Miller County residents work in Bowie County. There is a symbiotic economic relationship between Bowie and Miller. On the other hand, the other counties have a far more dependent relationship with Bowie, with many from the other counties coming to work there."

Fruth also spoke about 10 indicators of a strong economic entity, among them diversity of economic activity among primary industries, location, geographic economic assets and multiple transport systems. He also listed support systems, such as an available trained or trainable workforce, appropriate university or technical school support, an abundant supply of real estate and an aggressive, well-financed economic development organization.

Fruth said that a community eats through a lot of dollars. The trick to keeping from leaving itself poor is to have as many paychecks coming in that exceed the average national pay. This is accomplished by having many primary, or contributory industries, as opposed to mainly consumptive, or dependent industries.

"In any economy, wealth is mixed and churned," Fruth said, "Wealth in a community is constantly leaking out, unless a community can import wealth or generate it from within, exceeding the outflow.

"A community grows based on how much it grows its economy. This is determined by how much money it can draw in." 

He said primary industries make up a minority of economic activity in most communities, the common ratio being 5 percent primary and 95 percent consumptive. So when analyzing the economic activity of an area, one must determine whether more money being generated and coming in than going out.

"A local community can, through its actions, be the primary cause of economic growth or decline," Fruth said.

Fruth said the one important asset that the area needs to reach the next level economically is the element of a well-financed, economic development organization.

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