Olon Reeder’s Fix for an Ailing State Economy

Published on RIfutures.org, July 18, 2014

Olon Reeder, a slight-figured, unassuming, behind-the-scenes kinda guy, has been quietly improving the quality of life in northern Rhode Island for decades as a public affair adviser for the Blackstone Valley Tourism Council.  With his years of working in the public sector, as legislative assistant with the Rhode Island General Assembly in the mid-to-late 1970s, with the Garrahy administration, state agencies and with small businesses, he’s authored a nontraditional economic development policy paper he hopes will be considered in next year’s Rhode Island General Assembly debate as to how to create a more vibrant business environment in the Ocean State.

Over the years, Reeder, President of Reeder Associates, a Southern New England-based public relations and multi-media communications company, has seen state lawmakers and its economic development agency attempt to compete with surrounding states, just going after “larger, trendy, projects to turn the economy around. “Smaller companies would always get the short end of the stick, because they were not seen as a viable economic generator,” he says, stressing that this perception is inaccurate.

In recent years economic development solutions to fix the state’s ailing economy have been floated for public debate by lawmakers, economic development professionals or by large corporations. Today, Reeder, with almost 40 years of in the public and private sectors, calls on state lawmakers to consider his proposal when they focus on economic reform in next year’s session. More needs to be done, says the small businessperson who is a Native Rhode islander.

It’s almost like Mr. Reeder goes to Smith Hill, to take on the establishment to be heard.

“We are at a critical crossroads where we must overcome our negatives attitudes and start taking actions ourselves if we all want our state and our lives to become successful,” Reeder wrote in a recently released policy statement detailing his suggested economic development action agenda, as how to improve the state’s long term quality of life, through investing in people, communities and small businesses.

He calls for tying lifelong education to grow the economy. “Brain power is a key element driving worldwide demands and economic activity today, through the convergence of non stop knowledge, creative economy, enterprise and innovation, art-design connections, which all start with lifelong learning,” he says.

He says personal empowerment creates the environment for change “Empowerment encourages, and develops the skills for, self-sufficiency, giving people the abilities and knowledge that will allow them to overcome obstacles in life or work environment and ultimately, help them develop within themselves or in the society,” he says.

Companies are constantly replacing full-time employees, he said, and now relying upon independent contractors, where people who once counted on a steady pay check are now being left to fend for themselves in a hyper-competitive self-employed market. These individuals are oftentimes forgotten by policy makers.

Based on 2011 figures from the US Bureau of Labor Statistics, in Rhode Island, there re over 73 thousand self-employed contributing over $3 billion annually to the state’s economy. Most self-employed are hired out of necessity, are done so locally and through word of mouth. Because freelancers depend so much on self promotion to get their jobs, they must focus on the local markets, along with showcasing their diverse personal talents, marketing their skills to business owners in their community, along trying to compete with others for opportunities.

Reeder recognizes the importance of valuing our places, spaces and communities, to grow business. “More than ever, people must be connected to where we live, work, play, stay and travel. People expect places and spaces they interact with daily to be vibrant, active, socially appealing, culturally stimulating and help them in improving their quality of life, especially with their physical and mental health,” he says.

Reeder notes active living communities provide opportunities for people of all ages and abilities to engage in routine daily physical activity, he says, like pedestrian and bicycle friendly design, access to intermodal transportation, mixed use development, ample recreation, walkable neighborhoods, access to fresh and healthy foods and commerce centers. This philosophy must be included in any state economic development plan.

“Our economic revitalization is relevant to healthy and sustainable communities because active living communities encourage individuals to be more physically active, improving health by lowering citizens’ risk for health conditions, adds Reeder. “Active living communities create enhance quality of life, attract business and knowledge workers, and contribute to ongoing economic development,” he says.

Reeder stresses that technology is a must, as people are now “required” to have 24/7 365 access to the Internet and must now communicate through social media to live, work, and transact personal activity, he calls for providing everyone with free online access “as a necessity of our 21st century lifestyles.”  Finally, Reeder thinks “Demand Driven Experiences” are necessary for not only reinventing our state’s manufacturing, but in changing our self attitudes about how Rhode Islanders see themselves, ultimately affecting expectations others may have about the perception of Rhode Island as the worst place for business.

“Because people no longer buy things for their personal benefit, they want enhancements to fulfill missing elements of their lives,” adds Reeder, noting that experiences are crucial for businesses and locations as a branding and marketing tool, especially with efforts in Rhode Island attracting people to live and travel here for our entertainment, food and lifestyles.”  “Using our experiences to effectively promote market and give an iconic brand, we must also stay true to the “real Rhode Island,” to our proud independent and working class heritage, the ethnic and cultural diversity in our state, and preserving our unique natural resources,” he says.
State lawmakers are moving in the right direction to make Rhode Island a more business-friendly place to operate. Reeder continues his efforts to get his voice heard by General Assembly leadership, state policy makers, business groups, even gubernatorial candidates. Hopefully, they will choose to closely listen to Reeder’s nontraditional approach to economic development and to small business owners who know their specific needs to operate successfully.

– See more at: http://www.rifuture.org/olon-reeders-fix-for-the-states-ailing-economy.html#sthash.86LrWZAH.dpuf

Herb Weiss, “LRI ’12, is a Pawtucket-writer covering aging, health care, medical, and business issues.  He can be reached at hweissri@aol.com.

 

 

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Olon Reeder’s Fix for the State’s Ailing Economy

Published in Pawtucket Times, July 11, 2014

As the 2014 General Assembly session ended, CNBC released its annual Top States for Business rankings. It was not good news for the Ocean State. According to the report’s findings, Rhode Island finished last among the 50 states for the third time in the last four years. States were ranked in these 10 categories: cost of doing business, economy, infrastructure, workforce, quality of life, technology and innovation, business friendliness, education, cost of living and access to capital.

After the release of the scathing report, CNBC senior correspondent Scott Cohn caught up with Governor Chafee in Chicago, attending a regional Democratic Governors Association conference, who gave his thoughts to the report’s outcome. Rhode Island was on an upswing with the state putting funding into education, infrastructure and workforce development.

Reviving Up the State’s Economic Engine

Yes, as Chafee noted, a Rhode Island Senate staffer says that economic development was a priority on Smith Hill this year.

Gregg Parė, the chamber’s Director of Communication, says state lawmakers agreed with Chafee’s positive assessment of the progress made to make the state more competitive. “Many important components of the Senate’s Rhode to Work action plan to improve the skills of the existing workforce as well as the workforce of tomorrow were passed by the Assembly,” he noted.

Paré notes a centerpiece of the Road to Work plan was placing responsibility for coordination of workforce development with the Governor’s Workforce Board. Legislation was passed to accomplish this, ensuring that Rhode Islanders can access the training programs they need in a timely and effective way, he said.

“Additionally, the Jobs Development Fund was exempted from “indirect cost recovery,” which had directed a portion of the employer funded program for workforce development to the state. This provides an additional $1.2 million for worker training programs,” adds Paré.

Paré detailed some educational reforms that were addressed by lawmakers this year. The Board of Education was directed to seek lower cost but equally effective high school equivalency tests to the GED, and to reinstate a hardship waiver of fees for low-income test takers. This removes a potential barrier for obtaining an equivalency which can open doors to employment opportunities,” he says. Enacted legislation also provided more time for those receiving cash assistance to undergo training programs, and to provide professional development for high school counselors to ensure they are helping students as they enter today’s workforce. Passed legislation also helps communities transition to full-day kindergarten, a proven, effective way to better prepare students for success in school.

Paré says the newly enacted budget invests in initiatives the Senate has worked on for years which will have long-term benefits for the economy. “The Senate’s 2013 Moving the Needle report recommended reducing the corporate tax, which the 2015 budget reduces from 9 percent to 7 percent. At the same time, it shifts the method of corporate tax assessment to a single sales factor, which removes a disincentive for investing in jobs and property in Rhode Island. The budget also eliminates the cliff on the estate tax, and increases the exemption to $1.5 million.”

Summing up the legislative session, Senate President Teresa Paiva Weed said: “The budget invests in Rhode Island’s future. The reduction of the corporate tax rate and increase in the estate tax threshold help to make Rhode Island more competitive. The transportation infrastructure fund invests in the state’s roads and bridges. Our many initiatives in the area of job training will help the state’s economy continue to move in the right direction. I’m very confident that those initiatives will help students coming out of schools seeking employment as well as the state’s older workforce which is seeking employment.”

We Have More Work to Do

But, while it may have been a banner your for economic development reforms, Olon Reeder, President of Reeder Associates, a Southern New England based independent public relations and multi-media communications practice, calls on Rhode Island’s lawmakers to continue their focus on economic reform in next year’s session. More needs to be done, says the small businessperson, former public official and former award-winning media personality.

With the State of Rhode Island coming up with a new comprehensive economic policy early next year, the North Providence resident recently released his suggested economic development action agenda, as how to improve the state’s long term quality of life, through investing in people, communities and small businesses.

“We are at a critical crossroads where we must overcome our negative self attitudes and start taking actions ourselves if we all want our state and our lives to become successful,” says Reeder.

In his economic platform, Reeder calls for tying lifelong education to economic growth. “Brain power is a key element driving worldwide demands and economic activity today, through the convergence of non stop knowledge, creative economy, enterprise and innovation, art-design connections, which all start with lifelong learning,” he says.

Reeder says personal empowerment creates the environment for change “Empowerment encourages, and develops the skills for, self-sufficiency, giving people the abilities and knowledge that will allow them to overcome obstacles in life or work environment and ultimately, help them develop within themselves or in the society,” he says.

Reeder observes that companies are constantly replacing full-time employees and now relying upon independent contractors, where people who once counted on a steady pay check are now being left to fend for themselves in a hyper-competitive self employed market.

Based on 2011 figures from the US Bureau of Labor Statistics, in Rhode Island, there re over 73 thousand self-employed contributing over $3 billion annually to the state’s economy. Most self-employed are hired out of necessity, are done so locally and through word of mouth. Because freelancers depend so much on self promotion to get their jobs, they must focus on the local markets, along with showcasing their diverse personal talents, marketing their skills to business owners in their community, along trying to compete with others for opportunities.

Reeder recognizes the importance of valuing our places, spaces and communities. “More than ever, people must be connected to where we live, work, play, stay and travel. People expect places and spaces they interact with daily to be vibrant, active, socially appealing, culturally stimulating and help them in improving their quality of life, especially with their physical and mental health,” he says.

Reeder notes active living communities provide opportunities for people of all ages and abilities to engage in routine daily physical activity, he says, like pedestrian and bicycle friendly design, access to intermodal transportation, mixed use development, ample recreation, walkable neighborhoods, access to fresh and healthy foods and commerce centers.

“Our economic revitalization is relevant to healthy and sustainable communities because active living communities encourage individuals to be more physically active, improving health by lowering citizens’ risk for health conditions, adds Reeder. “Active living communities create enhance quality of life, attract business and knowledge workers, and contribute to ongoing economic development,” he says.

Reeder noted that technology is a must, as people are now “required” to have 24/7 365 access to the Internet and must now communicate through social media to live, work, and transact personal activity, he calls for providing everyone with free online access “as a necessity of our 21st century lifestyles.”

Finally, Reeder thinks “Demand Driven Experiences” are necessary for not only reinventing our state’s manufacturing, but in changing our self attitudes about how Rhode Islanders see themselves, ultimately affecting expectations others may have about the perception of Rhode Island as the worst place for business.

“Because people no longer buy things for their personal benefit, they want enhancements to fulfill missing elements of their lives,” adds Reeder, noting that experiences are crucial for businesses and locations as a branding and marketing tool, especially with efforts in Rhode Island attracting people to live and travel here for our entertainment, food and lifestyles.”

“Using our experiences to effectively promote market and give an iconic brand, we must also stay true to the “real Rhode Island,” to our proud independent and working class heritage, the ethnic and cultural diversity in our state, and preserving our unique natural resources,” he says.

State lawmakers must be commended for their successful efforts to slash regulation and enact laws to make Rhode Island a more business-friendly place to operate. At press time, Reeder, a Rhode Island native, whose family has been very prominent in Southern New England for over four generations in small business, real estate, building contracting and public service, continues his efforts to get his voice heard by General Assembly leadership, state policy makers, business groups, even gubernatorial candidates.

Hopefully, they will choose to closely listen to Reeder and others who may well hold the keys to fixing Rhode Island’s sluggish economy.

Herb Weiss, LRI ’12, is a writer who covers aging, health care, medical issues, and the economy. He can be reached at hweissri@aol.com.

 

Retooling America’s Manufacturing Sector

Published in Pawtucket Times, February 15, 2013

Over 50 years ago, you could hear the humming of the machines coming from Rhode Island’s factories.  The piercing sound of factory whistles would rip through the surrounding neighborhood, alerting all that a shift was ending and the next would soon begin.  

Weaving cotton into textiles came from mills scattered throughout northern Rhode Island which translated into work opportunities for all.  Traveling from the City of Providence, the CapitalCity to the City of Pawtucket, the birthplace of the nation’s Industrial Revolution, through Central Falls and up through the City of Woonsocket, you will discover that once we were the hub for the manufacturing of fabric for the nation’s second world war effort. For those factories filling three shifts, meant thousands of workers working in these mills, giving them a place to earn an honorable living. Blue collar workers fueled the nation’s economy as they bought homes, automobiles, as well as providing the  resources to send their children to colleges and universities. “Made in America” was a lifestyle and we were proud of it. 

Today, there is silence in many of these mills and for many of them, a new identity as these same factories have been transformed into artist lofts and studios or renovated for condo living.    For those factories still in operation, many of these manufacturers have decreased the number of shifts, thus reducing their workforce and ultimately impacting many of the local small businesses, leading to closures because of lack of customers.  Simply put, it’s the domino affect and the last piece might fall without Congressional action.   

Manufacturing Goes Over Seas

Over this decade, America’s manufacturing sector has crumbled giving way to China and third world countries to pick up the ball.  Drastically lower wages enable Chinese manufacturers to make cheaper goods sold to consumers for less then it would cost for the items to be made by an American-based manufacturing company. Along with lower wages, Chinese manufacturers face less environmental and safety regulations, taxes and have subsidized operational costs.  Imbalanced trade agreements are not favorable to American manufacturers who are losing the “economic race”, thus resulting in a loss of profits and employee lay offs.  Many of the nation’s manufacturers are being forced out of business, permanently closing their doors in cities and towns throughout this nation.       

A shopping trip always leaves me very unsettled about the flood of cheap imported productions into our nation.  Lower price tags on goods made outside of this country are enticing, but how often is quality been sacrificed for price?  We’ve  become a country of ‘mediocraty’ where its “good enough”.  Imported products ultimately impacts America’s children, who are now less likely to experience the prosperity that their parents once achieved because of the country’s manufacturing economy, which has now begun to falter and tilt to a service economy.     

Shelves of big box stores are packed with electronics and appliances, with most of these items stamped “Made in China.” Your local department store filled with discount bins and clothing racks are certainly not immune from this labeling.  The next time you are shopping, examine the country of origin for that product you are holding.  You guessed it, clothing, dishes, pots and pans, picture frames, all made from Chinese manufacturing companies. 

 Manufacturing Plants Sitting Idle

 As America’s manufacturing sector is decimated by the Chinese along with our communities losing higher paying manufacturing jobs, only lower paying service sector jobs will become available to low and middle income Americans. US Bureau of Labor Statistics 2011 Quarterly Census of Employment and Wages show that the average Rhode Island manufacturing job pays $50,823 annually and that there are currently 40,341 employees directly related to manufacturing. Six years ago, over 52,000 Rhode Islanders worked in the manufacturing sector.

Currently, cities and towns now see manufacturing plants sitting idle and empty or underutilized, often times reducing their tax base. This continued trend will not allow for a balanced economy.  Rhode Island can ill afford to lose its existing manufacturing base, ultimately thousands of people to the state’s unemployment statistics.

 

 Once upon a time, “Made in America” stamped on products gave the buyer an assurance of quality.  Government recalls protected our citizens from products that might harm or kill.  As we are increasingly aware, “Made in China” does not always ensure quality (such as pharmaceuticals, tooth paste and defective tires) because of poor Chinese governmental oversight.  In 2007, newspapers reported that some exported toys “Made in China” were produced with high levels of lead paint, being sent to tens of thousands of toy stores throughout the nation, putting our nation’s children at risk. At this time, even lack of product quality control even allowed poisoned pet food manufactured by Chinese companies to be shipped to America, killing thousands of cats and dogs.   

 Resuscitating the Nation’s Manufacturing Sector

With the kickoff of the 113th Congressional Session last month, it is crucial that the Democratic and Republican politicians thoroughly debate this nation’s trade policies and come up with viable bipartisan solutions to reenergizing America’s manufacturing sector.

Most importantly, what steps will President Barrack H. Obama working with a divided Congress take to ensure that American well-paying jobs do not vanish in the global economy?   On Tuesday evening, the President, addressing a joint session of Congress, gave us some clues in his State of the Union speech about retooling America’s manufacturing sector. 

Although the President touched on immigration reform and border security, early child education, clean energy technologies, the war in Afghanistan, and confronting gun violence, he called for fixing the nation’s aging infrastructure, along with launching manufacturing hubs, where businesses partner with the Department of Defense and Energy, to create high tech-jobs.  He looked to Congress to create a network of 15 of these hubs to “guarantee that the next revolution in manufacturing is “Made in America.”   If Congress blocks this economic initiative the defiant President plans to use executive orders to create three hubs on his own.

Meanwhile, redesigning the nation’s high schools to enable graduates to meet the demands of a high-tech economy can only help manufacturing companies, the noted President Obama.  Schools would be rewarded to develop partnerships with colleges and employers to create classes that teach science, technology, engineering and math skills needed by the nation’s manufacturing sector, he said.

In the Ocean State, as part of his ongoing work to jump start Rhode Island’s economy back, U.S. Rep. David N. Cicilline (D-RI)  at North East Knitting Company in Pawtucket, unveiled another version of his Make It In America Manufacturing Act to target federal investment in manufacturing, helping create jobs, generate public-private partnerships, and support small business growth. (This legislative proposal is similar to one that he introduced two years ago.)

“When they’re competing on a level playing field, American workers outperform competitors across the world,” said Cicilline. Noting that Rhode Island’s economy was built on the strength of its manufacturing industry, the Congressman who represents the 1st Congressional District, tapping into feedback from his Ocean State constituents and the Brookings Institution, crafted the legislative proposal to give manufacturer the resources needed to compete successfully, grow jobs, and get the state and national economy moving again.

Senator Kirsten Gillibrand (D-NY), has introduced the companion measure in the Senate.  If signed into law, Cicilline’s Make It In America Manufacturing Act would create a competitive incentive grant program, jointly administered through the Departments of Labor and Commerce. States or regional partnerships may apply for the program, and successful applicants will receive grant funds to help implement innovative Manufacturing Enhancement Strategies. 

Meanwhile, funds can be used to create a revolving loan fund, to issue low interest loans to manufacturers, or to provide grants to non-profits, including community colleges, helping manufacturers to address the skills gap that hinders growth in the manufacturing sector.  The loan funds could also be used to increase exports and domestic supply chain opportunities, improve energy efficiency.  Also, the loans could be used to retool and expand existing manufacturing facilities to compete in the 21st century economy.

Seeking a Bipartisan Compromise

The clocks cannot be turned back.  The global economy is here to stay.  Clearly, Congressional gridlock must end by federal lawmakers seeking legislative solutions to making the nation’s manufacturing sector more competitive in a global economy.  Democratic and GOP lawmakers must hammer out bipartisan solutions to enable the nation’s manufacturing companies to fairly compete worldwide and to ensure that trade polices are balanced and fair for all.  

Many of President Obama’s repackaged proposals (reintroduced in his hour long State of the Union speech) and even Cicilline’s manufacturing proposal were derailed in the last Congress in a Republican-controlled House, where GOP Tea Party members practiced anti-compromise politics.  It becomes crucial for the President’s legislative agenda along with Cicilline’s Make It In America Manufacturing Act, to not be bottled up in the House but truly debated.

With the dust settling from November’s elections, the America public has sent both the President and Congress a strong, clear message that is: work together to fix the nation’s sagging economy. Do the people’s work and leave your political bickering outside the House and Senate Chambers.  Compromise and keep manufacturing in America.

Herb Weiss, LRI ’12, is a freelance writer covering aging, health care and medical, even business issues. He can be reached at hweissri@aol.com

 

           

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