Survey: Northern Nevada businesses pessimistic about economy; 14 percent see improvement

Northern Nev. businesses pessimistic about economy

RENO, Nev. — Nearly two-thirds of northern Nevada business leaders believe economic conditions in the state are poor or very poor, but most agree the economy is no longer getting worse, according to a new survey.

About 14 percent indicated overall economic conditions have improved from the same time last year, up from 9 percent who answered that way six months ago, according to the survey by the University of Nevada’s Business College and Center for Regional Studies.

“There’s no evidence things are getting worse. It’s a plateau,” said Greg Mosier, the dean of the business college.

Several experts said the sour assessment underscores the need to diversify Nevada’s tourism-based economy and step up investments in infrastructure and education.

“It’s another wake-up call for diversification,” said Brian Bonnenfant, project manager at the Center for Regional Studies at the University of Nevada, Reno.

“We can’t have all our eggs in the construction and tourism basket. We’re not there yet. We’re struggling to find that next silver bullet,” he told the Reno Gazette-Journal on Tuesday.

The biannual online survey was sent to more than 7,700 area business leaders between July 7 and Aug. 2. It drew 689 responses, the highest return in the seven years since it first was circulated.

Among the other findings:

— 78 percent support some type of change to Nevada’s current tax structure.

— 28 percent say sales taxes need to be broadened to include more industries.

— 28 percent support increased mining taxes.

— 6 percent support a corporate or personal income tax.

“We’ve lived too long on a couple of industries that carried the burden,” Mosier said. “It’s time we have someone come in and articulate what the next step is. I’m still waiting for someone to wave the flag.”

Those charged with promoting commerce and luring new companies to the region agreed more cohesion is needed in the business community.

“There’s no real evidence of strategic planning,” said Len Stevens, executive director of the Sparks Chamber of Commerce. “There still is not an integration of the business community. It’s coming. It’s on the horizon. But if we don’t band together, then it’s not going to happen. There has to be some clarity.”

Chuck Alvey, CEO of the Economic Development Authority of Western Nevada, said the Reno-based agency has worked on diversifying the business base for decades, notably in its long-running Target 2010 initiative focusing on six key industries, including renewable energy.

“More people should hear the wake-up call,” he said. “A lot of people appreciate diversification, but those of us focusing on it really do get it.”

Stevens said education is a key thread to improvement.

“We’ve not utilized education as a resource. We need to utilize education from an investment standpoint,” he said. “The more you improve schools, you’re not just attracting construction jobs but corporate-type companies that require an educated work force.”

Rob Hooper, executive director of the Northern Nevada Development Authority in Carson City, said his outlook is more optimistic than what is reflected in the survey.

“It’s more a reflection of the national mood than anything else,” he said of the survey. “It’s a measure of how people feel as opposed to what’s actually going on.

“A lot of companies I deal with, business is going good. I am feeling momentum. I’m not buying into the doom and gloom right now.”