While 2021 was not without it challenges when it comes to Grand Island’s economy, it was a prosperous year, according to the Nebraska Department of Revenue.
“End-of-year reports suggest that Grand Island’s net taxable sales and motor vehicle sales hit all-time records with $1.065 billion in net taxable sales and $160 million in motor vehicle sales as of November 30,” said Cindy Johnson, president of the Grand Island Chamber of Commerce.
Johnson said that was “remarkable considering the challenges with inventory resulting from supply chain shortages.”
“It is not lost on me that pent up demand from the pandemic contributed to these figures,” she said. “Purchasing was likely up because people were staying close to home, investing in home repairs, and using the extra stimulus cash for down payments on new vehicles.”
When comparing building permit information for 2021 to 2020 and 2019, Johnson said, “Grand Island hit it out of the ballpark.”
She said commercial construction was more than $40 million while single-family home construction was $24 million and multi-family home construction neared $22 million. This construction activity alone supported 860 jobs and had a value-added impact of more than $64 million.
But, now, that we are into 2022, Johnson said the new year will have both its challenges and opportunities.
She said Grand Island’s unemployment rate is 1.4% — of the 43,300 people in the workforce, 42,900 are employed.
“There are more job openings than unemployed individuals,” Johnson said. “This is challenging for businesses looking to expand or to increase production.”
She said during the last two months, many restaurants have reduced business hours due to lack of workforce.
“While this may be acceptable for a short period of time and in specific types of companies, this business model is not sustainable over time,” Johnson said. “We need to re-engage people that stepped out of the workforce in 2020 and 2021 amid COVID-19 concerns, uncertainty in the world of education, and day care availability.”
One area of focus, she said, is connecting high school students who are not going on to higher education to jobs and careers in Grand Island.
“These young adults are being recruited for full-time, year-round positions at premiere businesses,” Johnson said. “Hiring fairs and exposure to all that Grand Island has to offer is being intensified.”
Johnson said Nebraska has gained more than 1,000 manufacturing jobs since the beginning of the pandemic.
“Grand Island companies are offering pay ranges, benefits such as tuition reimbursement and housing assistance, at significant levels,” she said. “Average weekly wages increased from $832 to $910 from the first quarter of 2021 to the second quarter of 2021.”
Johnson said the labor market is tight in nearly every segment of the economy.
“Professional services and health care workers are in high demand,” she said. “Recruiting and retaining our workforce is essential to Grand Island’s stability and growth.”
In January, state Sen. Ray Aguilar, who represents Grand Island, introduced LB902 to allocate funding for a cooperative internship program between Grand Island and Wayne State College.
Johnson said that in addition to testimony from Grand Island leaders, the Nebraska Bankers Association, and Norfolk representatives testified on the importance of meeting workforce demands in this field.
“This cooperative internship program will bring college seniors to Grand Island to work for one of our companies while they are completing their senior year course work,” she said. “This relationship begins in the students’ freshman year when they are introduced to our community and begin interacting with business and community leaders.”
Johnson said the goal is that these interns will stay in Grand Island, working and contributing to the vitality of our community.
“We are confident Senator Aguilar will see this bill to passage by the Legislature and the internship program will begin this fall,” she said.
Another potential bright spot for 2022 for Grand Island, Johnson said, is that the Nebraska Legislature also will play a role in improving the guest experience on the Fonner Park/Nebraska State Fair Campus.
She said Gov. Pete Ricketts supports funding $25 million in storm drainage improvements at the site.
“These improvements will reduce the large areas of the campus that are unusable when significant rainfall occurs,” Johnson said. “With the improvements, the Nebraska State Fairs and summer livestock shows will be able to maximize the entire campus with reduced flooding concerns. While not a new, shiny attraction or building, these improvements are essential to maximizing the space at Fonner Park and utilizing all areas of the campus for large events.”
After voters approved casino gambling in 2020, Johnson said Grand Island is among other communities awaiting decisions regarding rules and regulations for gambling from the Nebraska Legislature.
“Once these policies and procedures are established, construction on the $100 million Elite Casino at Fonner Park will begin,” she said. “A temporary gaming facility will be constructed in advance of the permanent casino which is projected to take two years to complete. The temporary gaming facility is expected to be constructed this year.”
On the horizon, Johnson said continued development of Prairie Commons is expected.
She said the current construction of the Tabitha Senior Care facility is well underway with completion expected in early 2023, and an office building for Unity Eyecare and Allen Capital Group is scheduled for completion this fall.
“The master plan for this development includes a hotel, mixed use space for retail and restaurants, and multi-family units,” Johnson said. “Construction for the hotel and multi-family housing will tentatively begin this spring.”
She said Central Community College celebrated the opening of their Entrepreneurship Center in February.
“The center and incubator spaces offer a variety of services for individuals and companies looking for technical or financial assistance in starting or growing their business such as coaching services, incubator space to start a new business at affordable rents, financial assistance to aid in starting a new business and/or continuing an existing business in the form of loans, and workshops and entrepreneurship training,” Johnson said.
She said Grow Grand Island is also investing in initiatives related to growing the entrepreneurial ecosystem in the community.
“This is an area that has been underserved in our community,” Johnson said.
Looking ahead, she said 2022 is shaping up to be another strong year for Grand Island.
“That’s not to say that there won’t be challenges along the way,” Johnson said. “Inflation and federal policies will continue to impact household disposable income. This is especially difficult for those on fixed incomes. While workers may be seeing an increase in their paychecks, the growth might not be keeping pace with the escalating prices for gas and groceries.”
She said Grand Island is a successful community because “we have business and community leaders who care about improving the quality of life and the economic health of our city.”
“Our leaders seek long-range results rather than short-term gains,” Johnson said. “The proof is all around us: continued investments by business and industry that move here or expand their current businesses.”
At all levels of government and business leadership, Johnson said, “We continue to have conversations about the best way to improve our community, and how we can accelerate progress.”
“Being prepared and creating opportunities is always the focus,” she said. “And you can help. Promoting Grand Island to prospective residents, workforce members, and businesses can be done by each and every one of us. I encourage you to remember why we live and work in Grand Island and to share this message.”
