C The New Economy Thriving amidst Change

ommunities increasingly see their economic development goal as one of attracting job-generating industrial development and face the need to develop a plan that will achieve this goal. Communities need to know a great deal to succeed at what has become a for-midable task, and many have few resources to hire experienced planners to assist them. This chapter is intended to provide information to communities and others that may be embarking on just such planning. The consulting we have undertaken around the country has shown us firsthand the rapid changes that are taking place in the economy and how communities will need to be resourceful and creative if they are going to succeed at self-preservation while at the same time attracting new jobs. The “New Economy ” of the twenty-first century is different from the industrial econo-mies of previous decades. Competition, consumer demand, and resource restructuring are all transforming the way business operates in today’s highly competitive market. Emerging technologies, global markets, the changing role of government, and the redirection of public resources are just some of the forces affecting the way industry is transforming the nature of work. These emerging trends are increasingly influencing the way communities engage in in-dustrial development. It is thus essential that anyone involved in local economic development have a firm grasp of how and where the marketplace is moving. The first half of the chapter spells out the major trends that are dramatically changing the nature of the issues that communities need to be aware of. The second half takes readers through a step-by-step approach that communities can follow in this changed environment to develop an effective comprehensive economic development strategy. Major Trends in Community Economic Development As we shall see, many past truisms no longer hold, or at the very least must be modified in sig-nificant respects if communities are to succeed in the twenty-first century in their communit