Greater Providence Region GDP 4th Highest in New England
Wednesday, November 27, 2013
The U.S. Conference of Mayors released this week its annual report on metropolitan economies and gross metro product (GMP), and the greater Providence region, which includes Fall River and New Bedford, ranked 43rd overall in the U.S. in 2012 with a gross metropolitan product of $69.5 billion dollars, which ranked it fourth in the New England region for GMP.
“This report makes clear how critical metropolitan areas are to our nation’s economy and ongoing recovery. Cities and their metro economies account for over 90% of Gross Domestic Product (GDP); nearly 86% of the nation’s population; and almost 86% of all jobs. So if our metro areas aren’t doing well, the entire country suffers,” said USCM President Scott Smith, Mayor of Mesa, AZ.
Boston-Cambridge-Quincy was tops in the New England region -- and ninth nationally -- with a GMP in 2012 of $336 billion; Bridgeport-Stamford-Norwalk was second at $86 billion.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTIn addition, the Conference of Mayors report includes the GDPs of foreign countries on the list, showing that some metropolitan areas' gross product is greater than that of entire nations -- and shows that the Greater Providence metro region's GMP is greater than the annual GDP of the Dominican Republic ($58 billion), Luxembourg ($57 billion), and Croatia ($56 billion), to name just a few of those listed.
GDP, GMP
The report also shows real GMP growth rates for metro areas in the country, in annual percent change. After a .3 change in 2011, the Providence-New Bedford-Fall River area showed a 1.7 increase in 2012, and is slated to be at 1% growth in 2013, with a projection of 1.9% in 2014.
Urban analyst Aaron Renn recently pointed to GDP growth in Providence as one one of "Five Recent Data Points that are Good News For Providence," taking a look at a longer stretch as a positive indicator for the State's capital.
"Providence has been doing fairly well in its growth in per capita GDP," said Renn, noting that for the city, "Providence ranked #14 in per capita GDP growth between 2001 and 2011 (the maximum data range available). Its growth was 9.2% on a real (inflation adjusted) basis. The current per capita GDP is $37,081."
GoLocal asked Providence City Council members -- as well as Mayoral hopefuls -- what they saw as necessary to further increase the city's economic output, and the assets it currently has that should be recognized.
Council on the Record on Economic Growth
Two City Council members noted the need to recognize that in order to be successful, Providence needed to look beyond its borders.
Luis Aponte, who has been on the Providence City Council for 15 years, said, "I think that if the focus in Providence is just within our borders -- we miss most our opportunities. If we measure economies, they're regional. We're connected to Boston as a jobs provider -- we need a regional view, and to look at opportunities within a regional context."
"Though census tracts group the city in a metro region with Fall River and New Bedford, Providence attracts people from a much broader area," said Bryan Principe, Councilman for Ward 13. "It has the right components to take advantage of any turnaround in the economy. Consider that; more people reside within a 75-mile radius of Providence than within a 75-mile radius of Boston; more designers reside within metro Providence than any other area outside of New York, while metro Boston has the highest concentration of high-tech workers outside of Silicon Valley. Consider also a robust transportation (commuter rail, highway) system with world class higher education. Taken together, Providence has unique assets that positions the area for robust growth."
Councilman Sam Zurier addressed what he saw as necessary to propel the Providence economy. "Support public schools to win competition with other school districts and the private schools to encourage middle class families to move to Providence and businesses to locate here. Develop a “wish list” for optimal development of I-195 land, share it with I-195 commission, and initiate search for best candidates. Support zoning changes to attract a vibrant downtown residential district."
Michael Solomon, the City Council President who is widely considered to be making a Mayoral run in 2014, emphasized as well the need for infrastructure, education -- and a "predictable business climate."
"We can improve our economy by increasing investment in infrastructure, putting our children first, and promoting a predictable business climate. Last year, we borrowed $40 million to repave 60 miles of the worst streets in Providence. We need to find a more consistent method of investment—such as a well-developed capital improvement budget—because private investment follows public infrastructure investment."
Mayoral Candidates' Vision
In addition to the City Council, GoLocal asked the Mayoral field for 2014 for their views on actions necessary for increased economic development in the city.
Jorge Elorza, tenured Professor of Law at Roger Williams University and former Housing Court Judge, told GoLocal, "I believe in the power of networks. Let's support Innovation Centers and Incubators that are bringing talented entrepreneurs together and allowing them to exchange ideas with other innovators. No one knows what the next great industry will be but we must position ourselves to be ready to create it."
In addition, Elorza said for economic development, Providence needs to explore the export market. "Emerging markets are growing at rates over 10% across the globe. These markets present opportunities for us as we have a diverse population here that is already internationally-oriented. Let's bring together the diverse communities, manufacturers, designers and entrepreneurs and let's travel abroad to find new markets and create new trading partners, " he said.
Bretty Smiley, Chair of the Water Supply Board and the founder and owner of an election compliance and advocacy business, said that private-pubiic partnerships would be critical.
"To grow our economy, we need to be creative, competitive, and attractive to new businesses. With a tight budget, little left to cut and nothing left to tax, it’s time to think about new ways to grow our way out of the challenges we face, and we can do this through public-private partnerships. The Greater Kennedy Plaza project organized by the Downtown Providence Parks Conservancy is a shining example of working with private companies and community partners to improve upon a public space in a way that is in the self-interest of surrounding businesses, and this same model can be applied to the construction of the streetcar line, the creation of an outdoor concert venue at the former “Shooters” site and more."
Recent entrant to the pool of Mayoral candidates Lorne Adrain, former chairman of the R.I. Board of Governors for Higher Education and currently a managing director at Ballentine Partners, a national wealth advisory firm.
"We need to be committed to designing, implementing and continuously improving an environment that is welcoming and inspiring as a place for entrepreneurship, innovation and makers/creators. Such an environment includes competitive and consistent tax policy, a world-class customer service system in city hall and a collection of resources that inspire and facilitate a wide range of business efforts. Getting this right will help more families to thrive and realize their dreams. When we do that, everything else gets easier."
