Master Plan - Chapter 6

Chapter 6: ECONOMIC DEVELOPMENT

Summary

The economic development of Antrim County is one of the major forces influencing the overall development and future land uses. This development is seen in the changing use of farm and orchard land, forests, lakes and river shore property, and in the population centers. The increase in population to Antrim County impacts land use and the economics of businesses.

This portion of the master plan focuses on economic trends so the recommendations in this plan can assist local efforts in stimulating economic growth and preserving existing jobs. These recommendations are listed in Figure 6-6, “Antrim County Economic Development Goals and Objectives” and are based on the historical and current economic trends as well as the following background information:

The natural resources in Antrim County, the lakeshores, rivers, and forests along with a favorable growing climate provide a basis for a combined favorable recreational and agricultural economy.

Agriculture is an important component of Antrim County.

The combination of metropolitan populations utilizing seasonal homes, rental tourist accommodations, and recreational activities results in seasonal businesses and service needs; with a corresponding seasonal employment situation. This seasonal fluctuation in service business, with peaks in August and February, result in a cyclical economic and employment pattern.

Even though the value of seasonal business is estimated at over 50 million dollars (according to the Antrim County Economic Development Corporation); it would be beneficial for business to have more year round activity.

Currently the largest numbers of jobs are in the manufacturing sector, but it will be necessary to further diversify for sustainability.

HISTORICAL INFORMATION: (What we did in the past...)

From 1940 to 1960: While total employment increased only slightly, there were substantial changes in the distribution of employment in the various categories.

In 1940, half of the workforce was in Agriculture, Forestry, Fisheries, and Mining, which was typical for northern Michigan during this time period.

The number of persons employed in agriculture decreased by two-thirds in this time period, the greatest loss was in the 1940s.

It is important to note that the value of farming as an economic activity did not decrease.

In 1945 there were 1,077 active farms and the value of livestock products sold was $916,269. ¹

1956 there were 676 active farms and the value of livestock products sold was $1,590,073. ¹

Manufacturing employment produced a net gain of nearly 500 jobs between 1950 and 1960.

In 1947 there were 27 manufacturing establishments with 206 production
workers and an economic value of $697,000.¹

In 1958 there were 28 manufacturing establishments with 622 production workers and an economic value of $4,762,000.¹

Construction and retail trade employment decreased between 1950 and 1960; however they both show a sizeable increase from 1940.

Both of these employment groups are related to the tourism

The change in the number of workers could be attributable to the seasonal natures of these industries in the 1960s.

The 1990 Census shows that there were 7,332 people in the workforce.

The highest concentration of workers (25%) was in manufacturing.

The second highest concentration (18%) was in retail trade.

Construction accounted for 8% of the workers.

¹ 1964 Antrim County Comprehensive Plan

CURRENT SITUATION: (What we do now...)

The number of employees in an industry (Figure 6-2) is taken from the 2000 US Census, while the economic value data came from the 2002 US Economic Census; therefore they are not directly comparative. This information provides an insight on current economic activities and is for general policy making; however it should not be used for specific economic projections.

Although the number of people working in Agriculture is relatively low, the market value of agricultural products sold (before taxes and production expenses) was $15,854,000 in 2002.²
The Manufacturing industry has the highest number of employees. In 2002, the economic value was $ 202,448,000.³

Special Note:

The Economic Census provides economic detail from the national to local level every five years, while the US Census presents population data every 10 years.

The Economic Census shows the total value of the shipments, sales, receipts, and revenue received for products in an industry for one year.

Education, Health, and Social Services had an economic value of $ 11,829,000 in 2002.³
11.1% of the employment population is working in the Retail Trade which had an economic value of $119,375,000 in 2002.³
The 2002 economic value for the Arts, Entertainment, and Recreation was $6,377,000.³
The 2002 economic value for Accommodation, and Food Service was $24,043,000.³
Although the above information and data in Figure 6-2, Number of Employees per Employment Group is cannot be directly compared, it does show some interesting trends.

Manufacturing is a major employment group and revenue source for Antrim County.

Agricultural provides a substantial economic revenue source when compared to how many people are in the labor force.

Retail trade will continue to be an important economic component.

² 2002 Census of Agriculture, from Northwest Michigan Council of Governments³ 2002 Economic Census, from Northwest Michigan Council of Governments

Figure 6-1 Number of Employees per Employment Group 2000
Employment Group	Number	% of Pop.
Agriculture, Forestry, Fishing, Hunting and Mining	342	3.4
Construction	937	9.4
Manufacturing	2,170	21.7
Wholesale Trade	209	2.1
Retail Trade	1,117	11.1
Transportation and Warehousing and Utilities Information	289	2.9
Information	164	1.6
Finance, Insurance, Real Estate, and Leasing	432	4.3
Professional, Scientific, Management, Administrative, and Waste Management Services	492	4.9
Education, Health, and Social Services	1,780	17.8
Arts, Entertainment, Recreation, Accommodation, and Food Service	1,283	12.8
Other Services	459	4.6
Public Administration	344	3.4
Total	10,018	100
Note: All of the employees are residents in Antrim County, however not all of them are employed in Antrim County.

Current situation: (The employment trends...)

Unemployment, according to the 2000 US Census:

In 2000, there were 10,705 people in the civilian labor force. 10,108 were employed, while 687 were unemployed for an unemployment rate of 5.6%.

It is common for rural communities in Michigan to have higher unemployment rates than the state average.

Employment sectors, according to the 2000 US Census:

Figure 6-2 May 2006 Unemployment Rate
Antrim County	6.3%
Northwest Lower Michigan	5.9%
Michigan	5.8%
United States	4.4%

Source: Northwest Michigan
Council of Governments

76% employees receive their pay from a private firm

13% employees receive their pay from the Government

11% employees are self-employed

1% employees are classified as other

These numbers are similar to the 1990 US Census

Commuting, according to the 2000 US Census:

The average travel time to work for Antrim County residents is 23 minutes

5,671 employees work and live in Antrim County.

1,347 employees live in Antrim County and work in Charlevoix County

1,285 employees live in Antrim County and work in Grand Traverse County

439 employees live in Antrim County and work in Otsego County

395 employees live in Antrim County and work in Kalkaska County

The remaining employees work in other parts of Michigan and the United States

The number of employment establishments increased, in recent years, while the total number of employees has decreased.

Map 6-1, Employment Distribution, shows the location of the employers within the County.

Figure 6-3 Number of Employers in Antrim County
	# of Employment Establishments	Total Number of Employees	Annual Payroll ($1,000)	Average Pay per Employee
1998	632	5,378	$105,482*	$19,614*
2004	652	4,440	$121,924	$27,460

*Adjusted for inflation
Source: US Census and Northwest Michigan Council of Governments

Figure 6-4 2004 Employment Establishment Types
Employment Establishment	# Employment Establishments	Total Number of Employees	Annual Payroll
Forestry, Fishing, Hunting & Agriculture Support	2	*	*
Mining	5	*	*
Construction	123	380	$11,357,000
Manufacturing	53	1,209	$48,747,000
Wholesale Trade	11	24	$933,000
Retail Trade	100	699	$15,406,000
Transportation & Warehousing	14	72	$1,531,000
Information	12	31	$847,000
Finance	29	155	$4,781,000
Real Estate & Rental and Leasing	22	117	$2,558,000
Professional, Scientific & Technical Services	48	214	$7,115,000
Administration, Waste Mgmt & Remediation Services	26	51	$1,093,000
Educational Services	7	*	*
Health Care & Social Assistance	45	437	$10,015,000
Arts, Entertainment, & Recreation	14	54	$1,485,000
Accommodation & Food Service	68	649	$7,782,000
Other	70	285	$5,219,000
Unclassified	3	10	$116,000

* Employment and Payroll Data was suppressed by the US Census to maintain confidentiality -

Source US Census and Northwest Michigan Council of Governments

FUTURE ECONOMIC PLANS: (What we plan to do...)

The Antrim County Planning Commission has a well established working relationship with the Antrim County Economic Development Corporation. This partnership advocates a proactive approach toward supporting and creating economic opportunities throughout the County. Using the data in this Master Plan, the Planning Commission will be able to assist the Economic Development Corporation to proactively plan for economic development.

Both groups agree that the long-term viability of Antrim County will be strengthened by utilizing collective strategies, and collaborative partnerships specific to economic and community development efforts consistent with sound planning principles.

In pursuit of economic and community development opportunities, Antrim County will conform to the following economic guiding principles:

Pursue balanced growth in order to diversify the county’s economy.
Preserve and protect our natural resources, our rural identity, and our scenic beauty.
Follow appropriate land use and planning principles.
Recognize the importance of continued input from all sectors of the community at large.

Based on the economic picture of Antrim County, the outlined economic guiding principles, and demographic data, the Economic Development Corporation outlined the following Goals and Objectives for the County. The Antrim County Planning Commission has accepted these goals and will work to support the Economic Development Corporation to implement them.

The Economic Development Corporation was established to:

alleviate and prevent conditions of unemployment
assist and retain local industries and commercial enterprises
strengthen and revitalize the economy of the County of Antrim
provide means and methods for the encouragement and assistance of industrial and commercial enterprises in locating, purchasing, constructing, reconstructing, modernizing, improving, maintaining, repairing, furnishing, equipping, and expanding in the County of Antrim
encourage the location and expansion of commercial enterprises in the County of Antrim
more conveniently provide needed services and facilities of the commercial enterprises in the County of Antrim and its residents.

Figure 6-5
Antrim County Economic Development Goals and Objectives

Goal 1: Promote a balance of economic growth with preservation of rural climate,
scenic beauty, and preservation of natural resources.

Objectives:

1.1 Target economic growth to effect growth of business of the desired nature;

1.2 Support purchase of development rights (PDR) and other techniques for farmland preservation.

1.3 Focus on quality of economy instead of quantity.

1.4 Support businesses that rely on renewable resources such as forest products.

1.5 Support tourism businesses that rely on favorable uses of natural resources.

Responsible Parties:

County, Townships, Chambers of Commerce, CRD, and Landowners

Goal 2: Promote controlled economic growth through appropriate land use policy
and regulations, planning, and planning mechanisms at the county,
township, and village level.

Objectives:

2.1 Concentrate commercial growth in planned commercial and industrial areas with supporting infrastructure.

2.2 Concentrate business and residential growth where compatible with land uses, topography, natural features, and existing businesses to limit scattered development.

2.3 Support identification and designation of specific downtown, commercial and industrial areas within the county.

2.4 Optimize existing available resources for planning and land use.

2.5 Encourage appropriate signage throughout the county.

2.6 Create and implement educational package on good use of land and how it impacts community vis-à-vis property right and property values.

2.7 Support inter-jurisdictional efforts in land-use planning and regulation.

Responsible Parties:

EDC, Chambers of Commerce, local units of government, DDA’s, and Regional Economic Development agencies.

Figure 6-6
Antrim County Economic Development Goals and Objectives (continued)

Goal 3: Promote retention and expansion of existing business and attract new businesses to create year-round jobs and to diversify the economy

Objectives:

3.1 Inventory facilities, infrastructure, services and identify needs.

3.2 Develop new and existing industrial and business parks and areas.

3.3 Promote year-round jobs in manufacturing, offices, health care, and senior citizen support services (including assisted living).

3.4 Combine government and private resources to bring economic development to the county.

3.5 Establish with surrounding counties a technology-based businesses development center (training, infrastructure, promotions).

3.6 Encourage collaboration between business, government and education to ensure educational facilities are available to provide job training.

3.7 Import replacement: identify goods and services residents currently purchase those that can be supplied locally.

3.8 Promote home businesses and light industries through regulatory and policy reform.

3.9 Target the development of new infrastructure through collaborative between private and public entities to service the needs of existing and new businesses.

Responsible Parties:

EDC, Chambers of Commerce, local units of government, DDA’s, and Regional Economic Development agencies.

Goal 4: Optimize coordination of activities and resources to target economic development throughout the county.

Objectives:

4.1 Create synopsis of governmental agencies, private organization, and their functions for general distribution.

4.2 Create county-based tool or mechanism to promote, direct, and support businesses, visitors and potential re-locators that need area information.

4.3 Invest the required capital, technology, and equipment for a county-wide Chamber of Commerce to prevent loss of economic development and employment opportunities from County.

Responsible Parties:

Antrim EDC, local units of government, DDA’s, Chambers of Commerce, regional economic development organizations, etc.

Goal 5: Promote and support appropriate public and private infrastructure development necessary for economic development

Objectives:

5.1 Ensure adequate communication facilities exist in the County to meet the requirements of residential, personal, commercial, and industrial applications, especially in the new technologies such as broadband internet and telecoms necessary for economic development.

5.2 Ensure provisions of adequate local medical facilities in all population centers of the County.

5.3 Promote transportation infrastructure development and maintenance to ensure convenient access and transportation to all parts of the County, to minimize traffic problems and congestion, and to facilitate the flow of labor and goods.

5.4 Encourage municipal sewer systems and alternatives to septic systems around lakeshores.

5.5 Ensure development of navigable waterways, trail systems, and recreational infrastructure to support and complement the existing park system.

5.6 Promote and coordinate utility development such as gas, electricity, power, and high speed telecommunications.

Responsible Parties:

County Road Commission, Township Boards and Village Councils, M-DOT, local and regional public works agencies, regional economic development organizations, and developers.

Goal 6: Promote growth/expansion of value added agriculture opportunities and promote general farm profitability.

Objectives:

6.1 Encourage state-wide reform of land-use taxation policies, especially as it relates to taxation of agricultural land (“current use valuation vs. highest economic use”)

6.2 Promote and facilitate adoption of transfer of development rights and/or purchase of development rights.

6.3 Retain and promote farmland.

6.4 Promote products; implement value-added concepts, including on-site produce processing, etc.

6.5 Encourage commercial and business activities concerned with development of renewable agricultural resources.

Responsible Parties:

Farmers, NLEA, MSUE, Local Units of Governments, Developers, County