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SOUTH
CENTRAL
ECONOMIC
DEVELOPMENT
DISTRICT, INC.
COMPREHENSIVE ECONOMIC
DEVELOPMENT STRATEGY
2019—2023
www.scedd.us
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F C
ON
TEN
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Table of Contents…….……………………………….…………………….………………………..2
Executive Summary….…………………….………..………….…………………………………...3
Background…….……….……………………………..………….………..………………………… 6
Intro of Region……………….……………………….………………………………………………………..... 6
Natural Resources………….……………………………………………….………………………………...... 7
Groundwater 7
Surface Water 9
Soil & Farmland 10
Infrastructure………………………………………….………………………………………………………….11
Transportation 11
Broadband 11
Higher Education System 12
Human Capital & Labor Force Characteristics………..…………………………………….......13
Population & Human Capital 13
Labor Force Characteristics 16
Industry Cluster and Emerging & Weakening Industries…………………………………..18
Industry Cluster 18
Emerging & Weakening Industries 21
Industry Analysis Summary 21
Workforce & Workforce Related Issues 22
SWOT Analysis…………………………………………………………………………………….....24
Economic Resilience……………………………………………………………………………...…26
Strategic Direction, Action Plan & Evaluation Framework…………………………..….29
Strategic Direction…………………………………………….………………………………………………29
Evaluation Framework……………………………………….……..……………………………………….29
Action Plan………………………………………………………….…………………………………………….30
Priority Area #1 30
Priority Area #2 31
Priority Area #3 33
Acknowledgements……………………………………………………………………………..….35
TABLE OF CONTENTS
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EXECUTIVE SUMMARY
The South Central Economic Development District, Inc. (SCEDD) is a region located in south central Nebraska and includes thirteen,
primarily rural, counties including Adams, Buffalo, Clay, Franklin, Hall, Hamilton, Harlan, Howard, Kearney, Merrick, Nuckolls, Phelps, and
Webster.
This Comprehensive Economic Development Strategy (CEDS) is a locally based, regionally driven economic development planning process
and document. Regions must update their CEDS at least every five years to qualify for U.S. Economic Development Administration
assistance. Based on regulations, the CEDS must include:
1. A summary background of the economic conditions of the region.
2. An in-depth analysis of regional strengths, weaknesses, opportunities and threats.
3. A strategic direction and action plan that builds on the analysis findings.
4. An evaluation framework to evaluate SCEDD’s implementation of the CEDS and its impact on the regional economy.
5. A discussion regarding the region’s economic resilience, or its ability to avoid, withstand, and recover from economic shifts,
natural disasters, the impacts of climate change, etc.
In addition, public engagement is a critical part of the CEDS process and it must be broad-based and inclusive.
The SCEDD’s 2018 CEDS Strategy Committee conducted analyses and developed the CEDS report using a process that involved broad-
based public input, including the following sectors: agriculture, economic development, education, health care, manufacturing, and
municipality. Key findings of the economic conditions of the region are:
The SCEDD region is characterized by strong agricultural natural resources including ground and surface water supplies, a
developed water management and distribution system, and fertile soils. This combination supports the strong agricultural
sector within the region.
The SCEDD region generally offers strong transportation infrastructure that is well developed for agricultural and manufacturing
exports. The technological resources are heterogeneously distributed throughout the region and while higher education
institutions are present, enrollment remains flat over the last 10 years.
Although there is population growth in the SCEDD region and the educational attainment of those 25 years and older is
increasing, like the statewide trend, there is evidence that the SCEDD region is experiencing an inflow of less educated people
and an outflow of more educated people. As a result, workforce and workforce-related issues exist and are affecting the
economic performance of the region.
The labor composition of the SCEDD region is generally toward lower wage industries (e.g., agriculture and manufacturing)
when compared to Nebraska. Lower farm incomes and lower wage and employment growth are other trends for the SCEDD
region. It appears that the region is moving toward a less dynamic, lower education, slower growth and lower wage work force
when compared to Nebraska generally.
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The industry analysis shows how tightly linked the core industries are within the region. Specifically, Manufacturing, Agriculture,
Transportation & Warehousing, and Wholesale Trade are tightly connected and play a critical role within the local economy.
One point of concern is the weakening of service industries within the region such as Health Care & Social Assistance and Retail
Trade.
Finding qualified workers remains a significant challenge within the SCEDD region. It appears that while the general trend is a
shortage of qualified workers and applicants for job openings, this problem varies by skill level, industry, and occupation.
Recruiting nurses for the region remains a significant challenge as well as skilled manufacturing workers. Rural counties have
reported that a significant challenge with recruiting and retaining workers is the quality of housing stock. New housing is largely
concentrated in higher populated areas and the quality of housing is declining on average in rural counties.
These key findings and the public input process allowed the 2018 CEDS Strategy Committee to conduct a regional SWOT analysis, and to
develop vision and mission statements and goals, objectives, action items, and performance measures to support continuous improvement
in the region. The strategic goals and objections of the plan are summarized below.
PRIORITY AREA #1: Industry Growth & Innovation
Rationale: Cluster industries in the region are tightly connected to the natural and infrastructure resources. Specifically, the soils, water
and transportation corridors play a critical role in the Agriculture, Manufacturing and Wholesale Trade industries. There is some concern
regarding the diversity of the economy as economic cycles and commodity pricing may inhibit strategic investment and innovation.
Investing in industries tied to local natural resources can enhance location-based stability compared to employers with fewer location-
based resources. That said, over dependence on core industries within the region can lead to instability and high risk to economic cycles.
Thus, it may be important to invest in related diversification within the core industries to enhance strategic investment and innovation,
diversify, and leverage local natural resources. The core industries are maintaining some level of advantage within the region but there is
also some need to invest in maintaining supporting industries to help retain and recruit workers.
Goal #1: To grow, sustain, and integrate efforts related to diversifying the regional economy, particularly in the agriculture-manufacturing-
wholesale trade industry cluster.
Objectives:
Enhance awareness about innovative efforts within industries in the region and the state
Reduce barriers to start, transition, and grow a business (i.e., to innovation in general)
Support diverse agriculture-manufacturing innovation
Support ecotourism and heritage tourism
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PRIORITY AREA #2: Workforce Development
Rationale: There are a number of encouraging and sobering trends as it relates to the workforce in the SCEDD region. Specifically, the low
unemployment and higher labor force participation show some level of job and worker opportunities. The challenges for workforce in the
region include greater employment growth for lower skill workers when compared to higher skill workers. Also, migration data suggests a
shift in worker composition that may inhibit innovation and growth. Finally, the very low unemployment remains a constraint to firm
growth. Developing some slack in the workforce could help firms to adapt more efficiently to changing environments.
Goal #2: To attract, develop, and retain a skilled, competitive, and entrepreneurial workforce that meets the needs of the regional business
community, particularly in the agriculture, manufacturing, and health care industries.
Objectives:
Enhance awareness about innovative recruitment and retention practices in non-metro areas
Facilitate collaboration among strategic partners to address education, training, and workforce development needs of the
regional business community
Reduce barriers to full labor participation
PRIORITY AREA #3: Housing
Rationale: Currently, the workforce in the region is insufficient to fully capitalize on firm opportunities in the region. This requires
recruiting and in-migration to meet local employment needs. The challenge is that wages within the region are lower than those found in
Lincoln and Omaha; and the housing costs and the quality of housing in the SCEDD region pose significant barriers to recruiting and
retaining workers. Enhancing the quality of housing stock in rural areas and encouraging affordable housing options in the populated
counties will be important to encourage economic development.
Goal #3: To increase diverse and affordable housing options.
Objectives:
Facilitate collaboration among strategic partners to address housing issues in communities in the region
Facilitate collaboration among strategic partners to prioritize and address blighted properties in communities in the region
Increase the variety of housing options in communities in the region
Increase the number of affordable/entry-level housing units
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Sources:
Figure 1: South Central Economic Development District, Inc - Map of the District
Photo 1: Photographed by Diane Murphey, June 2018
Photo 2: Photographed by Nebraska Tourism
Photo 1
Figure 1: Map of SCEDD Region
Introduction of the Region
The South Central Economic Development District (SCEDD) is comprised of
thirteen, primarily rural, counties including Adams, Buffalo, Clay, Franklin, Hall,
Hamilton, Harlan, Howard, Kearney, Merrick, Nuckolls, Phelps, and Webster. The
region covers 7,600 square miles (approximately 10% of Nebraska area) in south
central Nebraska with a total population of 202,482 persons (10.5% of
Nebraskans).
SCEDD has 86 incorporated cities and towns within its thirteen county region.
The three largest cities are Grand Island (51,517), Kearney (33,520), and Hastings
(24,991), known as the Tri-Cities. Each are the principal city of their respective
Metro or Micropolitan Statistical Area, which collectively comprise eight of the
thirteen counties in the region (Grand Island Metropolitan Statistical Area
includes Hall, Hamilton, Howard, and Merrick; Kearney Micropolitan Statistical
Area includes Buffalo and Kearney; and Hastings Micropolitan Statistical Area
includes Adams and Clay). The next cohort of cities range in population from
more than 2,400 but less than 6,000 and include Holdrege (5,555), Aurora (4,484),
Minden (2,905), and Central City (2,905). The remaining cities and towns have
populations of less than 2,400.
Photo 2
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Natural Resources
Groundwater1
Groundwater from the Ogallala Aquifer, one of the world’s largest
aquifers, is a valuable natural resource for the region. Approximately
99% of the residents rely on groundwater as their source of drinking
water, and the agriculture industry uses vast amounts of groundwater
to irrigate crops and sustain livestock. Of all the active registered water
wells in Nebraska as of November 2017, 52.7% and 11.3% were used
for irrigation and livestock purposes, respectively; see Table 1. As
shown in Figure 2, there is a concentration of active wells in the SCEDD
region.
Water Use Active
State
Irrigation 96,474
Domestic 30,223
Livestock 20,685
Monitoring (Groundwater Quality) 17,106
Public Water Supply 3,034
Commercial/Industrial 1,737
Other 13,774
Total 183,033
Figure 2: Active Registered Water Wells in the State
as of November 2017
Table 1: Active Registered Water Wells and Use
as of November 2017
Sources: 1Nebraska Department of Environmental Quality, 2017 Nebraska Groundwater Quality Monitoring Report, available at: http://deq.ne.gov/Publica.nsf/Pubs_GW.xsp
Figure 2 & Table 1: Nebraska Department of Natural Resources Registered Well Database, 2017
Median of the most recent Nitrate-N concentration by township of 18,160 wells from 1997-2016.
Photo 3: Photographed by Diane Murphey, June 2018
Photo 3
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Sources: 1Nebraska Department of Environmental Quality, 2017 Nebraska Groundwater Quality Monitoring Report, available at: http://deq.ne.gov/Publica.nsf/Pubs_GW.xsp
Figures 3, 4 & 5: Nebraska Department of Natural Resources Registered Well Database, 2017
Most Recent Nitrite-N Concentration by Township
Figure 3
Figure 4 Figure 5
Community Public Water Supply Systems with Requirements for Nitrate
Groundwater1 (Continued)
The depth to the groundwater in the region varies from a few feet to 200 feet. The
shallower the groundwater the cheaper it is to drill, construct, and pump water from the
wells; however, the groundwater is also more at-risk from impacts of human activities. A
wide variety of compounds (>240) are monitored across Nebraska and only 12
compounds sampled exceed the reporting limit, with the top compound being nitrate-
nitrogen. Counties in the region with exceptionally high levels of nitrate-nitrogen
concentration (>10mg/l) are Buffalo, Hall, Hamilton, Kearney, Merrick, Nuckolls, and
Phelps counties; see Figure 3. There are also:
Eight Public Water Systems in the region that must perform quarterly sampling
for nitrate; see Figure 4.
Two Public Water Systems in the region with Administrative Orders that
mandate system changes so that nitrate results are consistently below the
maximum contaminant level; see Figure 4.
One Public Water System in the region that is treating water because of high
levels of nitrate; see Figure 4.
Related to nitrate leaching is uranium concentrations in groundwater. There are two
Public Water Systems in the region that are treating water because of high levels of
uranium; see Figure 5.
Community Public Water Supply Systems with Requirements for Uranium
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Surface Water
2
Nebraska has 13 major river basins that include 1,558 designated stream segments and 539
lakes/impounded water. Two of these river basins, the Middle Platte River Basin and the
Republican River Basin, primarily cover the SCEDD region. Within these basins are two
important waterbodies, the Platte River and Harlan County Reservoir. The Platte River is a
valuable natural resource as its water irrigates crops, fills reservoirs, sustains livestock,
recharges the groundwater, and provides habitat for fish and wildlife species. The specific
stretch of the Platte River valley from Kearney to Grand Island is particularly important for the
region as each spring thousands of migratory birds (e.g., Sandhill Cranes and Whooping
Cranes) stop to rest and refuel in the valley before flying further north to breeding grounds.
The economic impact of the organizations in the region devoted to crane preservation,
education, and watching, as well as, the crane visitors that flood the area during the migration
is estimated to be $14.30 million.3
Harlan County Reservoir is Nebraska's second largest lake with 13,250 acres of water surface, and is a U.S. Army Corps of Engineers project.
Initially, the dam and reservoir were built for flood control; however, it now provides water for irrigation, recreation use, and fishing, hunting,
and wildlife watching. During the summer, water is released to irrigate thousands of acres in Nebraska and Kansas. For recreation purposes,
there are 542 camping pads available at 7 established campgrounds around the lake's 75 miles of shoreline. During the winter months,
hundreds of Bald Eagles stop at the lake during their annual migration, and American White Pelicans can be viewed at the lake during their
spring migration.
Overall, water quality index values for the Middle Platte River Basin and the Republican River Basin indicate the water quality of the basins is
“good.”
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Photo 4
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SOURCES: 2Nebraska Department of Environmental Quality, 2018 Water Quality Integrated Report, available at: http://deq.ne.gov/NDEQProg.nsf/OnWeb/TMDL and the Nebraska Wildlife Federation website,
available at: http://www.nebraskawildlife.org/public-policy/rivers-wetlands/ 3Dority, et al. (2017). The Economic Impact of the Annual Crane Migration on Central Nebraska. University of Nebraska at Kearney and Lincoln, available at http://unknews.unk.edu/wp-content/
uploads/2017/07/Crane-Economic-Impact-Study.pdf
Photo 4 & 5 Photographs by Nebraska Tourism
Photo 6 & 7: Photographs by Diane Murphey, June 2018
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Sources: 4 USDA, 2017 Web Soil Survey, available at: https://websoilsurvey.nrcs.usda.gov/app/
Photo 8: Photographs by Nebraska Tourism
Photo 9 & 10: Photographs by Diane Murphey, June 2018
Soil & Farmland4
Nearly 4.9 million acres of land make up the SCEDD region, and more than 250
different soils have been identified in the region, with the two most prevalent being
Holdrege silt loam and Hastings silt loam. The Holdrege and Hastings soil series
consist of very deep, well drained, and moderately permeable soils that are vital to
agriculture. They are classified as Class 1 or 2 for land capability, which indicates
the soils have slight to moderate limitations that restrict their use or that require
moderate conservation practices. Also, both have a “moderately high inherent
productivity” ranking for the National Commodity Crop Productivity Index. This
indicates that the soils have features that are generally quite favorable for crop
production, and good yields and moderately low risk of crop failure can be
expected. In terms of soil health, bulk density is one of several soil properties used
as a measure of soil health and is an indicator for soil compaction and root
restriction. Both the Holdrege and Hastings silt loams have ideal bulk densities for
plant growth (approximately 1.40 g/cm3).
Overall, nearly 60% of the SCEDD acres are classified as prime farmland or farmland
of statewide importance by the USDA’s Natural Resource Conservation Service.
Prime farmland has an adequate and dependable supply of moisture from
precipitation or from irrigation that is of adequate quality, a favorable temperature
and growing season, acceptable acidity or alkalinity, an acceptable salt and sodium
content, and few or no rocks. It is not excessively erodible or saturated with water
for long periods, and it either is not frequently flooded during the growing season
or is protected from flooding. Slope ranges mainly from 0 to 6 percent. Given the
prime farmland of the SCEDD region is essential to support the region’s industry
cluster, farmers have been taking steps to improve the health of the soil by
engaging in such practices as no-till production and cover cropping.
In summary, the SCEDD region is characterized by strong agricultural natural
resources including ground and surface water supplies, a developed water
management and distribution system and fertile soils. This combination supports
the strong agricultural sector within the region.
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Infrastructure
Transportation
SCEDD has extensive highway and rail infrastructure allowing
ease of access to markets. There are more than 1,200 miles
of State Highway, US Highway, and Interstate infrastructure,
with Interstate 80, the longest Interstate highway in
Nebraska, running through three of the SCEDD counties; See
Figure 6. Also, approximately 785 miles of rail lines connect
the SCEDD to the rest of the operational North American
Railroad Network, with Union Pacific or Burlington Northern
Santa Fe railroads running through 10 of the SCEDD
counties.
Broadband5
Although 91% of the SCEDD population has one or more
broadband (ADSL, Cable, Fiber, Fixed Wireless, Satellite,
Other) providers, this percentage varies greatly across the 13
counties within the SCEDD, ranging from 22% to 99%.
Counties with less than 90% of the population having one or
more broadband providers include Harlan (82%), Clay (79%),
Franklin (55%), Nuckolls (52%), Webster (42%), and Hamilton
(22%). The region will be strengthened by expanding
broadband access to these rural counties. Statewide and
nationwide, 89% and 95% of the population, respectively,
have one or more providers.
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Sources: 5 Federal Communications Commission, available at: https://broadbandmap.fcc.gov/#/
Figure 6: https://www.i80nebraska.com
Figure 7: https://broadbandmap.fcc.gov/
Photo 1
Figure 7
Figure 7
Figure 6
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Percent of Students Enrolled by Institution, 2016
Higher Education System6
Institutions of higher education in Nebraska are categorized into five
types:
University of Nebraska
Nebraska State College System
Nebraska Community Colleges
Nebraska Independent Colleges & Universities
For-Profit/Career Schools
Within the SCEDD region, three types are present and include the
University of Nebraska with a campus in Kearney (UNK), Central
Community College with campuses in Grand lsland and Hastings and
learning centers in Kearney and Holdrege (CCC), and Hastings College
in Hastings. Nearly 11% of all students enrolled in Nebraska’s
institutions of higher education are enrolled in these institutions
within the SCEDD region. And, among the three institutions, 47% of
students are enrolled at UNK, 44% are enrolled at CCC, and 9% are
enrolled at Hastings College.
Since 2010, enrollment across all Nebraska institutions of higher
education has declined by 6.2%. However, among the three
institutions located in the SCEDD region, enrollment has declined by
slightly more, -7.3%, and this decline is driven by CCC (-16.1% for
CCC, +4.4% for Hastings College, and +0.5% for UNK).
In summary, the SCEDD region generally offers strong transportation
infrastructure that is well developed for agricultural and
manufacturing exports. The technological resources are
heterogeneously distributed throughout the region and while higher
education institutions are present, enrollment remains flat over the
last 10 years.
Sources: 6 Nebraska’s Coordinating Commission for Postsecondary Education, available at: https://ccpe.nebraska.gov/enrollment-dashboard
Hastings College, CCC, & UNK Enrollment, 2006-2016
Figure 8
Figure 9
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Human Capital & Labor Force Characteristics
Population & Human Capital7
There are nearly 202,500 people living in the SCEDD region, and 71% of them live in the counties in which the Tri-Cities are located (30% in
Hall County, 25% in Buffalo County, and 16% in Adams County). The next group of most populated counties in the SCEDD region are
Hamilton and Phelps counties, with 4.5% of the SCEDD population residing in each county. Given the population of an area is the primary
source of the area’s human capital, there are several important population trends to note.
Sources: 7 U.S. Census Bureau, American Community Survey.
1. Positive Population Growth, but Rural Counties are Shrinking
Since 2010, the population in the SCEDD region has grown 3.0%
compared to 5.1% for Nebraska and 5.5% for the U.S.; however, the
growth has varied across the region. The counties in which the Tri-
Cities are located have experienced good population growth (7.9%
in Buffalo County, 5.0% in Hall County, and 1.0% in Adams County),
whereas the rural counties on the southeast border of the SCEDD
region have experienced population declines (-5.0% in Nuckolls
County, -5.2% in Clay County, -7.3% in Franklin County, -7.6% in
Webster County). Thus, although the SCEDD region is a primarily
rural region, a similar pattern is occurring to that nationwide –
residents are moving away from non-metro/non-micropolitan
counties to metro/micropolitan counties.
2. Educational Attainment is Increasing
Since 2010, the proportion of the SCEDD population 25 years and older with a bachelor’s degree or higher and those with
some college or an associate’s degree increased 2.3 percentage points and 1.7 percentage points, respectively; whereas the
proportion of high school graduates or below fell 3.9 percentage points. This indicates that educational attainment in the
SCEDD region is increasing, and overall, 23.3% of the population 25 years and older has a bachelor’s degree or higher; howev-
er, this is below the same cohort statewide (30.0%).
Figure 10
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Population & Human Capital
7 (cont.)
3. Growing Hispanic Population
The race composition of the SCEDD region is less diverse than Nebraska overall with 95.1% of the SCEDD population
identifying as white compared to 90.1% for Nebraska. However, the proportion of Hispanics in the SCEDD region (12.7%)
is slightly higher than the proportion for Nebraska (10.2%), and there is a greater influx of Hispanics to the SCEDD
compared to Nebraska overall (33.5% vs. 26.2% Hispanic population growth from 2010 to 2016).
4. Aging Population & a Loss of Working-Age Population
The age composition of the SCEDD population is similar to that of Nebraska in that about 50% of residents in each area
are between the age of 25 and 64 years. However, those 65 years and older in both the SCEDD region and Nebraska have
experienced the fastest population growth since 2010 (12.0% for SCEDD and 16.0% for Nebraska), and men are driving this
growth trend. The next two age groups with positive growth following those 65 years and older are 18 to 24 year olds
(8.1% in SCEDD and 5.3% in Nebraska) and 5 to 13 year olds (3.5% in SCEDD and 4.6% in Nebraska). Conversely, both
areas have experienced the largest population declines among 45 to 64 year olds (-3.1% for SCEDD and -0.5% for
Nebraska), and women are driving the working-age population decline.
Sources: 7 U.S. Census Bureau, American Community Survey.
Age Group Growth, 2010-2016 Age Distribution, 2016
Figure 11 Figure 12
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Population & Human Capital7 (cont.)
5. Positive Net Migration8
Net migration is positive for the SCEDD region indicating more people are moving to the region than are leaving the region.
The top five states from which individuals are coming to the SCEDD region are non-adjacent states and include: Florida,
Minnesota, California, Illinois, and Colorado. Of the individuals who are leaving the SCEDD region, the top five states to
which they are headed surround Nebraska and include: Other Nebraska counties (top five are Lancaster, York, Jefferson,
Sarpy, and Dodge), Kansas, Missouri, Iowa, and Wyoming.
In terms of the educational attainment of those who are leaving, Nebraska’s Coordinating Commission for Postsecondary Education
examines the average annual net migration estimates by education level at the state level. Overall, it concludes that out-migration of
Nebraskans with at least a bachelor’s degree continues to be a serious issue that Nebraska must address.9
In summary, although there is population growth in the SCEDD region and the educational attainment of those 25 years and older is
increasing, similar to the statewide trend, there is evidence that the SCEDD region is experiencing an inflow of less educated people and an
outflow of more educated people. As a result, workforce and workforce-related issues exist (discussed below) and are affecting the
economic performance of the region.
Sources: 7 U.S. Census Bureau, American Community Survey. 8Note: Net migration is the difference between the estimated numbers of individuals who moved to or from the SCEDD. If net migration is positive (negative), the number of people who moved to the region is
higher (lower) than the number who left the region. 9Nebraska’s Coordinating Commission for Postsecondary Education, 2018 Nebraska Higher Education Progress Report, available at https://ccpe.nebraska.gov/higher-education-progress-report
Figure 13 Figure 14
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Figure 15: Percentage of Workers Employed by Industry, 2017
Labor Force Characteristics10
The unemployment rate in the SCEDD region is low (2.8%) and generally at or below the rate in Nebraska overall (2.9%). Also, the labor
force participation rate in the SCEDD region is high and similar to the rate in Nebraska overall (70% for both areas).
In terms of the composition of employment by industry, the SCEDD region differs from Nebraska. Relatively more workers are employed in
the lower paying industries of agriculture (3.4% vs. 1.7%) and manufacturing (15.6% vs. 10.1%) than in Nebraska overall, whereas relatively
fewer workers are employed in the higher paying industries of finance and insurance (3.2% vs. 5.8%) and professional and technical services
(2.7% vs. 4.7%) than in Nebraska overall; See Figure 15
The employment composition partly explains why average wages are 14.1% lower in the SCEDD region compared to Nebraska; however,
there are several other important labor market trends to note.
1. Lower Real Net Farm Income
With relatively more workers in the
SCEDD region employed in
agriculture, and given nearly two in
four jobs in the SCEDD region are
tied to agriculture compared to
one in four jobs statewide, the
health of ag-related markets
translates into the health of the
SCEDD economy. After rising since
2006, real net farm income in
Nebraska last peaked in 2013 at
nearly $8.05 billion. Since 2013, it
has declined and is forecasted to
remain weak. Overall, Nebraska
real farm income is expected to be
57% lower in 2018 compared to
2013.
Sources: 10 Nebraska Department of Labor, Quarterly Census of Employment and Wages, and Local Area Unemployment Statistics, available at: https://neworks.nebraska.gov/vosnet/Default.aspx. USDA,
Farm Income and Wealth Statistics, available at: https://www.ers.usda.gov/data-products/farm-income-and-wealth-statistics/
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Figure 16: Real Average Weekly Wage ($)
2. Slower Employment Growth Than Nebraska
Since 2010, employment growth in all industries in the SCEDD region has been positive but slower than the employment growth
in Nebraska overall (6.8% in SCEDD vs. 8.7% in Nebraska). Approximately 36% and 44% of all workers in Nebraska and in the
SCEDD region, respectively, are employed in the top three industries of Health Care and Social Assistance, Retail Trade, and
Manufacturing. Statewide since 2010, employment has grown 8.3% in these three industries, driven by 12.8% growth in Health
Care and Social Assistance. In the SCEDD region, growth in the top three industries has only been 5.1% with Manufacturing
growing 8.4%, Health Care and Social Assistance only growing 6.3%, and Retail Trade slightly declining. Overall, at the state
level, the growing numbers of jobs in Health Care and Social Assistance appear to have offset the weak growth in farm income.
However, due to weaker job growth in Manufacturing and Health Care and Social Assistance in the SCEDD, the offsetting affect
has not been the same.
3. Slower Real Wage Growth Than Nebraska
In 2010, real wages were 13.3% below those of Nebraska overall; however, due to
slower wage growth over time, real wages in the SCEDD region are now 14.1%
lower than those in Nebraska overall; Figure 16. Statewide since 2010, real wages
grew 5.3%, whereas in the SCEDD region, real wages grew 4.4%. In
Manufacturing, which is the top employer in the SCEDD region, real wages only
grew by 1.1% whereas they grew by 3.3% statewide. Conversely, there were real
wage gains in several industries, including Health Care and Social Assistance,
Retail Trade, and Accommodations and Food Services, but they were not enough
to offset slower real wage growth and even real wage loses in other industries.
Summary of Human Capital and Labor Force
Generally, the SCEDD region labor force can be characterized by several trends. First, the migration away from rural areas toward cities,
increased levels of education, aging population and a decline in the working age population. National migration patterns offer an intriguing
view as most in-migration has come from more distant states while out-migration has moved to neighboring states. This trend appears to
suggest a shift in the SCEDD workforce composition. To some degree, the labor force in the SCEDD region generally represents Nebraska
trends regarding low unemployment and higher participation rates. The labor composition is generally toward lower wage industries in the
SCEDD region when compared to Nebraska. Finally, although there is employment and wage growth in the SCEDD region, it is not keeping
pace with growth in Nebraska overall. This indicates that the regional economy is not as healthy as the state economy, and that it will be
more difficult to attract workers to the region with relatively lower wages.
Sources: 10 Nebraska Department of Labor, Quarterly Census of Employment and Wages, and Local Area Unemployment Statistics, available at: https://neworks.nebraska.gov/vosnet/Default.aspx. USDA,
Farm Income and Wealth Statistics, available at: https://www.ers.usda.gov/data-products/farm-income-and-wealth-statistics/
18
Industry Cluster and Emerging & Weakening Industries
Industry Cluster
To better understand the inter-industry relationships in the SCEDD region, an input-output model was built. The model represents all the
monetary transactions between businesses in different industries; thus, we are able to identify key industries in terms of inputs purchased
and output sold regionally in the supply chain, as well as, amounts sold outside the region. The figure below represents the regional
supply chain flows. The node size is based on employment in the industry. The edge size (e.g., the thickness of the curved lines) is based
on the inter-industry input and output flows; therefore, thicker lines indicate more monetary transactions occur between two industries
either in the form of sourcing inputs or supplying outputs. The placement of the nodes is based on how connected the industries are, with
more highly connected industries being placed in the center of the network and less connected industries on the periphery. The node
color is based on clustering of the industries.
Sources:
Minnesota IMPLAN Group data for 13-county SCEDD.
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Figure 17
19
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Table 2: Key Subsectors of Ag & Manufacturing
Figure 18: Percent of Final Demand Exported
Based on the industry analysis, the Agriculture,
Manufacturing, Wholesale Trade, Transportation &
Warehousing, Mining, and Utilities industries form a key
cluster within the SCEDD region. Of these six industries,
three – Agriculture, Manufacturing, and Wholesale Trade –
are particularly important for the economic growth of the
region as they collectively generate 50% of all the region’s
output. Table 2 shows the important subsectors within the
Agriculture and Manufacturing industries.
Also, it is clear from the thickness of the flows of the
regional model that the cluster has important linkages to
support industries within SCEDD (e.g., Professional Services
which includes insurance carriers, banks and credit
institutions, and real estate); thus, creating multiplier effects.
Finally, a high percentage of the goods and services produced
by the region’s cluster are sold outside of the regional
economy, thus generating an inflow of income into the
region. The top exporting industry is Manufacturing with 94% of final
demand exported, followed by Agriculture (61%) and Mining (61%),
particularly sand and gravel mining; See Figure 18.
Further analysis using location quotients (a measure of employment
concentration) provides additional evidence that the Agriculture,
Manufacturing, and Wholesale Trade industries make the SCEDD economy
unique. These industries employ more workers in the SCEDD region than
the state and national averages for the same industry. In total 23% of all
SCEDD workers are employed in these three industries compared to 16% at
the state level and 14% at the national level. Given this employment
concentration, these industries are the only industries that lie in the “star
industries” quadrant in Figure 19 (next page) indicating not only strong
employment concentration, but that these export-oriented industries have
strengthened since 2007.
Sources:
Minnesota IMPLAN Group data for 13-county SCEDD
Key Subsectors % of Industry’s Final Demand Produced
Agriculture
Grain farming 51.4%
Beef cattle ranching and farming, including feedlots and dual-purpose ranching and farming
27.8%
Oilseed farming 18.5%
Top 3 Agriculture Subsectors 97.7%
Manufacturing
Animal, except poultry, slaughtering 31.2%
Farm machinery and equipment manufacturing 11.8%
Soybean and other oilseed processing 6.8%
Motor vehicle gasoline engine and engine parts manufacturing 6.5%
Other basic organic chemical manufacturing (e.g., ethanol) 6.2%
Top 5 Manufacturing Subsectors 62.5%
20
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Note: Location quotient (LQ) is a ratio of the share of employment in a particular industry in the region to the share of employment in that industry nationwide. A LQ
of 1.0 means the share of employment in a particular industry in the SCEDD region is exactly the same as that in the same industry nationally. If an industry’s LQ
exceeds (is below) 1.0, then the SCEDD region is employing more (fewer) workers than the national average. Rather than 1.0, we use a threshold of 1.1 to identify
employment concentration and thus export-oriented industries. Industry categories are based on the LQ level and change since 2007: star industries – LQ at or above
1.1 and increasing; mature industries – LQ at or above 1.1 and decreasing; emerging industries – LQ below 1.1 and increasing; and weakening industries – LQ below 1.1
and decreasing. The size of the bubble is based on employment in the industry.
Sources:
Census Bureau, Quarterly Workforce Indicators
Figure 19
21
Emerging & Weakening Industries
The location quotient analysis also allowed us to identify several industries that are emerging and weakening. The Construction and
Education Services industries have relatively high employment concentrations and have strengthened over time such that they are
classified as “emerging industries”; Figure 19. These industries may eventually become more important in terms of a competitive
advantage in the region. In particularly, given the location and trade region, the SCEDD region could become more important for Greater
Nebraska in terms of providing higher education and alleviating housing shortages.
Conversely, Health Care and Social Assistance and Retail Trade are classified as weakening industries because their employment
concentrations have weakened since 2007, thus dropping below the employment concentration threshold; Figure 19. That is, in 2007,
these industries would have been classified as employment concentration/export-oriented industries (e.g., star industries). Since 2007,
employment has grown in Health Care and Social Assistance (6.3%) but has declined in Retail Trade (-0.1%), and the employment
concentration has decreased by 11% and 5%, respectively.
To better understand the change in employment in these industries since 2007, we decomposed the overall employment change in each
industry into 1) a national growth effect, 2) an industry mix effect, and 3) a regional competitive effect; Table 3. The national growth effect
captures how much of an industry’s growth in SCEDD is explained by the overall growth of the national economy. The industry mix effect
captures the share of an industry’s growth in SCEDD that is explained by industry growth at the national level. The regional competitive
effect captures how much of a change in a given industry is due to some unique competitive advantage that the SCEDD region has.
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Table 3: Industries by Regional Competitive Effect
Industry
Change in Employment
since 2007
National Growth Effect
Industry Mix
Effect
Regional Competitive
Effect
Manufacturing -556 1,163 -2,670 951
Agriculture 775 103 50 622
Wholesale Trade 100 391 -407 116
Educational Services 844 650 -182 376
Construction -272 386 -874 216
Retail Trade -567 923 -254 -1,235
Health Care and Social Assistance 1,115 1,037 2,535 -2,457
Notice in Table 3 that Health Care and Social Assistance
and Retail Trade have large negative values in the regional
competitive effect column. This indicates that because
the growth in these industries can be explained by
national trends in that industry and/or the economy
overall, these industries have no unique competitive
advantage in the SCEDD region. In fact, employment in
the Health Care and Social Assistance is nowhere near
keeping up with employment trends in the industry, and
employment in Retail Trade in the SCEDD region is
declining much quicker than the industry is overall.
Industry Analysis Summary
One of the key takeaways from the industry analysis is how tightly linked the core industries are within the region. Specifically,
Manufacturing, Agriculture, Transportation & Warehousing, and Wholesale Trade are tightly connected and play a critical role within the
local economy. In addition, these industries represent “star” industries that have a higher location quotient, indicating a source of
competitive advantage, and are growing. One point of concern is the weakening of service industries within the region such as Health Care
& Social Assistance and Retail Trade.
22
Workforce & Workforce-Related Issues
Based on public input, several workforce and
workforce-related issues were identified including
workforce shortage, lack of affordable and entry
level housing options, lack of childcare options,
aging population, and rural/urban divide. This
section focuses on the top two issues.
1. Workforce Shortage
A workforce shortage is a challenge for the
SCEDD region according to evidence from public
input, results from an employer survey on skill
needs and training practices, and data indicating
that the SCEDD region is experiencing an inflow
of less educated people and an outflow of more
educated people. The Central Nebraska Survey of
Hiring and Training Needs administered by the
Nebraska Departments of Labor and Economic
Development11 found that nearly 63% of the
region’s employers reported that issues with labor
availability would be present if they were asked to
consider an expansion. Moreover, about 76%
reported it was difficult to find workers for the
occupations they have been trying to hire or
recently hired. The top three reasons cited for
difficulty finding workers are 1) not enough
applicants, 2) poor work history, and 3) lack of
experience.
Occupation High Wage
Occupation
% of Businesses
Reporting
Difficulty in
Hiring
Top Reasons for Hiring Difficulty
Registered Nurses (SOC CODE 29-
1141) Yes 90.4%
85.5% - Not enough applicants
49.8% - Wage demands too high
25.8% - Not available for shifts required
Automotive Service Technicians
and
Mechanics (SOC CODE 49-3023)
Yes 89.5%
75.2% - Not enough applicants
74.4% - Lack of occupation-specific skills
62.1% - Lack of experience
47.1% - Poor work history
Heavy and Tractor-Trailer Truck
Drivers
(SOC CODE 53-3032)
Yes 80.6%
74.6% - Not enough applicants
72.9% - Lack of experience
63.9% - Poor work history
53.1% - Lack of required licenses/certificates
Machinists (SOC CODE 51-4041) No 100.0% 100.0% - Lack of experience
100.0% - Lack of occupation-specific skills
Welders, Cutters, Solderers and
Brazers (SOC CODE 51-4121) No 85.6%
87.4% - Not enough applicants
64.9% - Poor work history
63.8% - Lack of experience
57.4% - Lack of occupation-specific skills
Multiple Machine Tool Setters,
Operators and Tenders, Metal and
Plastic (SOC 51-4081) Computer
No 83.3%
80.0% - Not enough applicants
60.0% - Lack of experience
60.0% - Lack of occupation-specific skills
Controlled Machine Tool
Operators, Metal and Plastic (SOC
51-4011)
No 75.5%
71.0% - Lack of experience
71.0% - Wage demands too high
61.5% - Not enough applicants
Maintenance and Repair Workers,
General (SOC CODE 49-9071) No 71.7%
78.0% - Not enough applicants
69.1% - Lack of experience
55.8% - Lack of occupation-specific skills aIdentified as a H3 (High Wage, High Skill, and High Demand) occupation by the Nebraska Department of Labor.
Source: UNL Bureau of Business Research, 2017, Kearney Area, Hastings Area, and Grand Island Area Skills Gap Report,
available at: https://neworks.nebraska.gov/gsipub/index.asp?docid=802
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Table 4
Based on a skills gap analysis, Table 4 summarizes top occupations in the region that are particularly difficult to fill. Besides Registered
Nurses, the difficult-to-fill occupations primarily support the region’s cluster industries, particularly Manufacturing. The top reasons for
hiring difficulty cited by employers include “not enough applicants” and “lack of experience” followed by “lack of occupation-specific skills.”
It will be key for the growth of the region to take a multi-pronged approach and 1) attract more workers with relevant skill sets, 2) provide
opportunities for less experienced workers to gain the experience and occupation-specific skills that are needed, and 3) support and
provide education opportunities for those seeking training and degrees.
Sources:
11Nebraska Departments of Labor and Economic Development, 2017, Kearney, Grand Island, and Hastings Hiring and Training Needs Report, available at: https://neworks.nebraska.gov/gsipub/index.asp?docid=802
23
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Sources:
https://socds.huduser.gov/permits/index.html
Figure 21
Figure 20
Figure 22
2. Housing
On May 2, 2017, the Nebraska Rural Workforce Housing Investment Act was signed into
law. The Act channeled nearly $7 million into the Rural Workforce Housing Investment
Fund. The funds will be used to finance affordable housing development projects in
communities within counties of less than 100,000 residents. Its purpose is to bolster rural
communities’ workforce recruitment efforts by helping them expand and improve their
affordable housing stock, and is a testament to the lack of affordable workforce housing in
rural Nebraska, including the SCEDD region.
Within the SCEDD region, the housing stock varies significantly in the quality of housing
available. Figure 20 shows that most of the housing in rural counties in the region was built
before 1950 (darker shaded counties), whereas in the more populated counties (but still
with fewer than 100,000 residents), more housing has been built after 1950 (lighter shaded
counties). To further illustrate the lack of new housing in the region, Figure 21 compares
the number of single family permits relative to the total housing stock. Similar to the
pattern in Figure 20, most of the new housing is being built in the northwest quadrant of
the region whereas the south and east borders have significantly fewer permits when
compared to their total single-family housing stock.
Overall, there is evidence that the housing
stock in the rural counties of the SCEDD
region is of lower overall quality and is not
being replaced at a similar rate to those in
more populated counties. Part of this trend
may be due to the housing vacancy rates.
Figure 22 compares the vacancy rates for
the counties within the SCEDD region and
indicates that the rural counties have a
much higher vacancy rate when compared
to the more populated counties.
24
SWOT ANALYSIS
The SWOT analysis process began in January 2018, and the following summarizes the process.
1. Initial SWOT spectrum formulated: Given the key assets and regional trends, initial strengths, weaknesses, opportunities, and
threats of the SCEDD region were identified. Each strength was ordered on a spectrum from emerging strengths to competitive
advantages. Similarly, the weaknesses were ordered on a spectrum from a likely to a clear weakness; opportunities from least to
most likely to yield a positive impact; and threats from least to most likely to harm if no action is taken.
2. Initial SWOT to Eisenhower Matrix: The SWOT spectrum was presented at the SCEDD Economic Developers Forum.
Participants at the forum included economic developers, city administrators, and city chambers of commerce from the SCEDD
region. Participants were asked to identify any missing strengths, weaknesses, opportunities, and threats, and to prioritize the
strengths, weaknesses, opportunities, and threats by placing them in one of the four quadrants of the Eisenhower Matrix: (1)
Important, but not urgent; (2) Important and urgent; (3) Not important and not urgent; and (4) Urgent, but not important.
3. Refined SWOT and Public Input: Given the input from the SCEDD Economic Developers Forum, the SWOT was refined and
presented across the SCEDD region during April through June 2018 to obtain broad-based and inclusive public input. The
various sectors represented in the public input process included agriculture, education, health care, manufacturing, and
municipality.
4. Final SWOT: The final SWOT was presented at the Tri-City Area Economic Forum in September 2018. The Forum brings
together local experts from the public, private, and academic sectors to report on the regional economy. By providing up-to-date,
local, and objective information regarding the strengths and challenges facing the regional economy, a goal of the coordinators
of the Forum is to assist local leaders with enhancing the competitive position of the region and making communities more
vibrant.
SW
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SIS
Summary of Workforce and Workforce-Related Issues
Finding qualified workers remains a significant challenge within the SCEDD region. It appears that while the general trend is a shortage
of qualified workers and applicants for job openings, this problem varies by skill level, industry, and occupation. Recruiting nurses to the
region remains a significant challenge as well as skilled manufacturing workers. Rural counties have reported that a significant challenge
with recruiting and retaining workers is the quality of housing stock. New housing is largely concentrated in higher populated areas and
the quality of housing is declining on average in rural counties.
25
NOTE: Rankings are prioritized based on Eisenhower Matrix input (5 points if urgent and important, 3 points if important but not urgent, 3 points if urgent but
not important, and 0 points if not important and not urgent. A star indicates a top priority area.
SW
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Figure 25
26
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Sources: 12 USDA, Economic Research Service, Farm Income and Wealth Statistics USDA 13 Nebraska Department of Labor
Economic Characteristic Resilience Issue Initiatives to Manage Issue
High dependence on
agricultural and
manufacturing sectors
Highly cyclical industries which hampers strategic
investment, while weakening worker productivity
and resource allocation
Enhancing financing resources, information and strategies to more
effectively encourage strategic investment notwithstanding
commodity and economic cycles.
Related diversification to leverage existing strengths while spreading
risk across multiple products/industries.
Maintaining natural resources and infrastructure Encouraging sustainable farming practices.
Weakening but critical
supporting industries
Insufficient workers to maintain growth.
Recruiting workers from other locations is
hampered by weakening supporting industries.
Encourage affordable housing investments, monitor health care, day
care, retail, accommodations, and food services.
Rural depopulation Housing, private investment Community investments to help people want to stay in the region.
Worker Shortage Unable to capitalize on growth, develop
productive routines, rising recruiting costs
Invest in automation
Enhance management practices to minimize turnover, worker
development to enhance productivity.
ECONOMIC RESILIENCE
The SCEDD regional economy can be characterized by strong economic clusters around manufacturing and agriculture. Both industries
leverage local natural resources, geographic advantages, and infrastructure. However, the heavy reliance on these industries poses
significant challenges as it relates to economic resilience. The agricultural sector is highly dependent on higher commodity prices to
maintain farmer and supporting industry incomes. Both corn and soybean pricing has softened significantly over the past 4 years and thus
farm incomes have fallen by over 50% from 2013 to 2017.12 The unpredictability of commodity prices and high levels of competition
around commodity production will serve as important factors influencing economic resilience in the region. The manufacturing industry
also poses several challenges as it relates to economic resilience. The manufacturing sector can be highly cyclical. For example, during the
2008 recession manufacturing employment in the Tri-City area dropped by over 2%. 13
During our meetings with business, non-profit, economic development, and government leaders several patterns repeatedly came to the
forefront. These issues relate to investing in related diversification to better leverage local resources while spreading economic activity
across more product markets within the agriculture and manufacturing sectors, as well as, supporting industries to maintain workers for
these key industries. The following will help the region become more economically resilient.
1. Planning for and implementing resilience through specific goals or actions to bolster the long-term economic durability of the region
(steady-state); See Table 5. Table 5
27
ECONOMIC RESILIENCE (cont.)
2. Establishing information networks among the various stakeholders in the region to encourage active and regular communications
between the public, private, education, and non-profit sectors to collaborate on existing and potential future challenges (responsive).
Establishing and reinforcing networks will be critical to the economic resilience strategy of the SCEDD region. Information networks
allow information to flow to the relevant players in the economy to understand, interpret, and adapt to changes in the environment.
Strong networks assist in resource allocation, and innovation. Because of geographic dispersion in rural areas it can be difficult to
establish and maintain information networks.
Developing informational networks has been critical to the reporting process. In particular, we have sought public input through
multiple meetings. These meetings have enabled the SCEDD team to build connections with business leaders in multiple locations
and industries. Furthermore, the culmination of the report was included in the Tri-City Area Economic Forum which gathers business
and non-profit leaders from the region to review local trends and to collaborate on initiatives to strengthen the local economy.
Table 6 is a matrix including critical players in the regional economy and the meetings and organizations which sponsor such
connections. While some areas are well represented and connected, others are less so. The SCEDD group and other economic
development players will play a critical role as conveners of these connections. The first part of their role will be to reinforce existing
organizations and players in their connections. This would be to better publish, encourage, and invest in the conveners of
information within the region such as those identified in the table. The second part is to establish connections between the
agriculture, manufacturing and education sectors. Building organizational mechanisms by which these sectors can collaborate,
communicate and coordinate will be critical to the ongoing economic resilience in the region.
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Agriculture Manufacturing Education Economic Development Retail Healthcare
Ag. Nebraska Farm
Bureau’s Annual
Meeting and
Convention,
USDA Farm
Credit Services
Hasting Area
Manufacturing
Association
4-H Clubs
County Fairs
FFA
Nebraska College of
Technical Agriculture
(NCTA)
Skills USA
Night Markets
Alliance for the Future of
Agriculture
Center for Rural Affairs
NExtGen
Chamber Agriculture Committee
Hastings Agri-Business Committee
Local Farmers’
Markets
CPI & Aurora
Coop
GROW
NEBRASKA
Manuf. Midwest Nebraska
Manufacturing
Group
Hastings Area
Manufacturing
Association
MakersSpace,
Hastings Public
Library Skills USA
CCC Career Academy
Hasting Area Manufacturing
Association
Midwest Nebraska Manufacturing
Group
Area Chambers of Commerce
NExtGen
Education Career Pathways
Education Service
Units
InternNE
Business & Chamber Education
Committees
Kearney Community Connections
Meeting
Hastings BIE Committee
Career/Job
Fairs
DHHS
Rural Nebraska
Healthcare
Network
KHOP program
at UNK
Econ Dev SCEDD Meeting Downtown
Associations
Retail Retail
roundtable
(Hastings)
Nebraska Retail
Federation
Shop Kearney
Community
Meeting
Healthcare Tri-Cities
Medical
Response
System
DHHS
Nebraska Rural
Health
Association
(NeRHA)
Table 6
29
STRATEGIC DIRECTION, ACTION PLAN, & EVALUATION FRAMEWORK
The strategic planning process involved broad-based public input similar to the SWOT analysis process described above. After carefully
taking into account the variety of input by representatives from agriculture, education, healthcare, manufacturing, and municipality, and
what was learned from the background data analysis and SWOT analysis, the SCEDD Strategy Committee developed a mission and vision
statement:
Mission Statement: SCEDD provides value to the region by delivering leadership and services that help create sustainable
communities.
Vision Statement: SCEDD aspires to enhance the “good life” by creating a dynamic business environment, accessibility and
support for entrepreneurs, and safe and affordable housing.
The SCEDD Strategy Committee also identified three priority areas for the region: (1) industry growth and innovation, (2) workforce
development, and (3) housing. For each priority area, the Strategy Committee set goals; and for each goal, objectives and action items
were outlined to accomplish the goals. The table below summarizes the number of objectives and action items for each priority area.
Table 7: Summary of Total Number of Objectives & Action Items per Priority
Evaluation Framework
To evaluate the effectiveness of the CEDS goals and objectives, direct and indirect measures were identified. The direct measures are tied
specifically to the strategic goals and objectives so that what is working or not working can be better identified and subsequent action can
be taken. The indirect measures are broader measures of wealth creation in the region. Given the CEDS goals and objectives are asset-
based strategies, these indirect measures should improve if the direct measures are successfully being met. The direct and indirect
measures are presented on the following pages by priority area and with their respective goal, objective, and action item.
Priority
Total Number of:
Objectives Action Items
Industry growth and innovation 4 9
Workforce development 3 10
Housing 4 7
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Action Plan
PRIORITY AREA #1: Industry Growth & Innovation
Rationale: Cluster industries in the region are tightly connected to the natural and infrastructure resources. Specifically, the soils,
water and transportation corridors play a critical role in the Agriculture, Manufacturing and Wholesale Trade industries. There is
some concern regarding the diversity of the economy as economic cycles and commodity pricing may inhibit strategic investment
and innovation. Investing in industries tied to local natural resources can enhance location-based stability compared to employers
with fewer location-based resources. That said, over dependence on core industries within the region can lead to instability and
high risk to economic cycles. Thus, it may be important to invest in related diversification within the core industries to enhance
strategic investment and innovation, diversify, and leverage local natural resources. The core industries are maintaining some level
of advantage within the region but there is also some need to invest in maintaining supporting industries to help retain and recruit
workers.
Goal #1: To grow, sustain, and integrate efforts related to diversifying the regional economy, particularly in the agriculture-
manufacturing-wholesale trade industry cluster.
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Table 8. PRIORITY AREA #1: Industry Growth & Innovation
Objective Action Implementation Partners Direct Measure Indirect Measure
Enhance awareness about
innovative efforts within
industries in the region
and the state
Identify and support conveners in core
industries
DED
NeMAC
HAMA
NxGen
Local Econ Dev.
AFAN
# of communications on
innovative efforts
Patents per 1,000 workers
Proprietors per person
# of meetings with conveners
Reduce barriers to start,
transition, and grow a
business (i.e., to
innovation in general)
Identify barriers that may prohibit new
ideas/businesses from coming to fruition
DED List of key barriers is developed
Partner with agencies/organizations in
the region to provide services for new
entrepreneurs to navigate the
entrepreneurial process
REAP
NEF
NBDC
GROW
USDA
UNL (Engler Ag Institute)
# of referrals
Partner with agencies/organizations in
the region to develop a helpful and
collaborative culture – a culture where
people say, “I want to stay here”
# of communications on
helpfulness and collaboration
within our region
# of meetings with agencies/
organizations
31
Table 8(cont). PRIORITY AREA #1: Industry Growth & Innovation
Objective Action Implementation Partners Direct Measure Indirect Measure
Support diverse agriculture-
manufacturing innovation
Facilitate collaboration among strategic
partners to examine alternative agriculture-
manufacturing opportunities that the
region can provide
DED
AFAN
NeMAC
Local Econ Dev.
Extension
FFA Leadership
Value of products and services
diverted from outside of the
region to inside the region
Total employment growth
Wage growth
New products
# of meetings with strategic
partners
Facilitate collaboration among strategic
partners to prioritize and nurture
innovative ideas and alternative agriculture
-manufacturing opportunities
DED
AFAN (AG groups – corn
growers, soy bean, cattlemen)
NeMAC
Local Econ Dev.
Extension
Value of products and services
diverted from outside of the
region to inside the region
# of alternative agriculture-
manufacturing ideas/
opportunities nurtured
Identify and secure resources to promote
innovation in and to reinforce the
agriculture-manufacturing industries
DED
AFAN
NeMAC
Local Econ Dev.
Extension
Amount of resources secured
Support ecotourism and
heritage tourism
Facilitate collaboration among strategic
partners to examine opportunities in
ecotourism/heritage tourism
Grow Nebraska
DED Tourism
Chamber of Commerce
UNL: Great Plans Ecotourism
NE Dept. of Tourism
Increase in # of tourists to South
Central Nebraska
Employment growth in
tourism industries
# of meetings with strategic
partners
Increase awareness of opportunities available
to entities for capitalizing on existing tourist
events (crane migration)
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PRIORITY AREA #2: Workforce Development
Rationale: There are a number of encouraging and sobering trends as it relates to the workforce in the SCEDD region. Specifically,
the low unemployment and higher labor force participation show some level of job and worker opportunities. The challenges for
workforce in the region include greater employment growth for lower skill workers when compared to higher skill workers. Also,
migration data suggests a shift in worker composition that may inhibit innovation and growth. Finally, the very low unemployment
remains a constraint to firm growth. Developing some slack in the workforce could help firms to adapt more efficiently to changing
environments.
Goal #2: To attract, develop, and retain a skilled, competitive, and entrepreneurial workforce that meets the needs of the regional
business community, particularly in the agriculture, manufacturing, and health care industries.
32
Table 9. PRIORITY AREA #2: Workforce Development
Objective Action Implementation Partners Direct Measure Indirect Measure
Enhance
awareness about
innovative
recruitment and
retention
practices in non-
metro areas
Identify and rank innovative recruitment and
retention practices that are successful in non-metro
areas
DED
Healthcare Leadership
Ag Leadership
Manufacturing Leadership
Education Leadership
# of innovative practices identified Total employment
growth
Educate key stakeholders in the region about the
findings on innovative recruitment and retention
practices
DED # of education sessions
Work with businesses in the region to implement
the innovative recruitment and retention practices
such that a model can be built for other businesses
in the region
DED
Healthcare Leadership
Ag Leadership
Manufacturing Leadership
Education Leadership
# of businesses working with to develop
model
Progress made on model
Facilitate
collaboration
among strategic
partners to
address
education,
training, and
workforce
development
needs of the
regional business
community
Work to get the manufacturing/trades-based career
message into targeted locations to increase
awareness about career opportunities among
students, parents, teachers, and administrators (e.g.,
career trajectory information, videos from DED)
DED/DoL/DoT
Local Schools
EcDev Organizations
# of new locations with manufacturing/
trades-based career message
Unfilled jobs
openings
Educational
attainment
Work with high schools to expand options for high
school students to obtain trades-based skills while
still in high school such that a model can be built
for other high schools in the region
Education Leadership # of high schools working with to
develop model
Progress made on model
Work with businesses in the region to identify
strengths and weaknesses of current education,
training, and workforce development programs
such that a model/curriculum can be built for other
businesses/economic development stakeholders in
the region
# of businesses working with to develop
model
Progress made on model/ curriculum
Support efforts by the Nebraska Departments of
Labor & Economic Development and the Bureau of
Business Research to maintain and update labor
availability and skills gap research
DoL
DED
Bureau of Business
Research
# of communications on how the labor
availability and skills gap research is
being used to address workforce issues in
the region to the Nebraska Departments
of Labor & Economic Development and
the Bureau of Business Research
Unemployment rate
growth
Unfilled job openings
Expand partnerships between community colleges
and 4 year institutions to combine a trade with a
degree in business
CCC
UNK
Hastings College
Increase # of opportunities for trades-
based education Unemployment rate
growth
Unfilled job openings
AC
TIO
N P
LA
N
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LA
N
Table 9. (cont.) PRIORITY AREA #2: Workforce Development
Reduce barriers
to full labor
participation
Identify top barriers to full labor participation, such as childcare, transportation, health care, poor work history, currently untapped labor pools, online degrees, and/or lack of soft skills
Move Kearney Public Health Dept. UNK Dept. of Ed
Labor force
participation rate
Total employment
growth
Poverty rate
Access to health care Work with agencies/organizations in the region to
create and/or enhance programs to address these
barriers
Rooted in Relationships Public Health Dept. Kearney Works Prairie Gold? UNK ECEC?
# of barriers addressed
# of programs created and/or enhanced
PRIORITY AREA #3: Housing
Rationale: Currently, the workforce in the region is insufficient to fully capitalize on firm opportunities in the region. This requires
recruiting and in-migration to meet local employment needs. The challenge is that wages within the region are lower than those found
in Lincoln and Omaha; and the housing costs and the quality of housing in the SCEDD region pose significant barriers to recruiting and
retaining workers. Enhancing the quality of housing stock in rural areas and encouraging affordable housing options in the populated
counties will be important to encourage economic development.
Goal #3: To increase diverse and affordable housing options.
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Table 10. PRIORITY AREA #3: Housing
Objective Action Implementation Partners Direct Measure Indirect Measure
Facilitate collaboration
among strategic partners
to address housing issues
in communities in the
region
Work with communities to identify ordinances,
codes, and/or regulations that could be
enforced to support housing starts,
development, or rehab
# of communities where
ordinances, codes, and/or
regulations are enforced
Housing permits
Improvement permits
Average value of
permit
Increase in ratio of
modern housing units
Decrease in unused or
vacant properties
Increase of Municipal
tax base
Work with key stakeholders to examine current
housing ordinances, codes and/or regulations,
and identify barriers that may prohibit housing
starts, development, or rehab
# of meetings with key
stakeholders
# of barriers identified
Work with agencies/organizations in the region
to communicate/advocate for changes to
reduce and/or eliminate the barriers
Omaha Municipal Landbank # barriers reduced or
eliminated
Facilitate collaboration
among strategic partners
to prioritize and address
blighted properties in
communities in the
region
Identify communities with blighted properties
that are interested in addressing them
Communities # of communities addressing
blighted areas
Support these identified communities Communities # of communities supported
Increase the variety of
housing options in
communities in the
region
Work with employers, agencies, banks, and
private developers to encourage development
of a variety of housing options on a regional
basis
# of housing units developed
# of different types of
housing available in the
region
Increase the number of
affordable/entry-level
housing units
Work with employers, agencies, banks,
government agencies, and private developers to
encourage development of affordable housing
on a regional basis
# of meetings with key
stakeholders
# of new affordable/entry-
level housing units in the
region
AC
TIO
N P
LA
N
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Government Representatives
Name Government Positon
Dale Curtis Adams County County Commissioner
Dennis Reiter Buffalo County County Commissioner
Barb Barnett Clay County County Zoning Administrator
Raquel Felzien Franklin County City of Franklin Clerk
Mary Berlie Hall County Grand Island Area Economic Development Corporation
Bobby Parks Hamilton County County Commissioner
Doug Wilson Harlan County Alma City Administrator
Mike Feeken Howard County Executive Director St. Paul Development Corporation
Robert Swanson Kearney County County Commissioner
Kent Carlson Merrick County County Commissioner
Tim Zikmund Nuckolls County County Commissioner
Theresa Puls Phelps County County Commissioner
Jay Hall Webster County Heritage Highway Tourism
Non-Government Representatives
Private Sector Representatives
Name Company/Enterprise Position
Matthew Blum Good Samaritan Society - Superior Executive Director
Linda Glaus Five Points Bank AVP/Mortgage Officer
Stakeholder Organization Representatives
Name Organization Position
Marni Danhauer Central Community College- Grand Island Associate Dean of Extended Learning Services
Keith Dubas Central Community College – Hastings Construction Technology Instructor
BOARD COMPOSITION
South Central Economic Development District, Inc.
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Name Organization Position
Trina Goodrich Aurora Area Chamber & Economic Development Director
Dana Dennison Ravenna Economic Development Executive Director
Darren Robinson The Economic Council of Buffalo County Executive Director
Mike Feeken St. Paul Economic Development Executive Director
Maggie Vaughn Hastings Economic Development Corporation Interim Executive Director
Mary Berlie Grand Island Area Economic Development Corp Assistant Director
Doug Wilson City of Alma City Administrator
Ron Tillery Phelps County Development Corp. Executive Director
Jeff Hofaker City of Sutton City Administrator
Matt Cederburg City of Minden City Administrator
Miles McGinnis City of Central City Economic Development Director
Heather Overturf City of Superior Economic Development Director
Jarrod McCartney Heritage Tourism, Red Cloud Executive Director
Kelly Gewecke Nebraska Department of Economic Development Central Field Service Rep.
Evan Clark Nebraska Department of Economic Development Economic Development Consultant
CEDS STRATEGY COMMITTEE, STAFF LIST
South Central Economic Development District, Inc.
CEDS Strategy Committee
Name Position
Sharon Hueftle Executive Director
Levi Adam Deputy Director
Lori Ferguson Community Consultant
Sheri Alber Fiscal Officer
Linda Martin Staff Assistant
Kristy Borden Grant Assistant
Staff List
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CEDS AUTHORS & PHOTOGRAPHY
South Central Economic Development District, Inc.
Authors Position
Dr. Bree Dority Associate Dean, College of Business & Technology
PhD, University of Nebraska-Lincoln, 2008 University of Nebraska-Kearney
B.S.B.A., University of Nebraska-Lincoln, 2003
Dr. Daniel Chaffin Assistant Professor, Management
PhD, Michigan State University, 2015 University of Nebraska-Kearney
MBA, University of Colorado, 2008
BS, Brigham Young University, 2004
Photography
Diane Murphey Photographer
Texhoma, TX
Nebraska Tourism Nebraska Department of Tourism
