At a time when Vermonters are surveying the economic damage caused by the COVID-19 crisis, UVM’s Office of Engagement and Center for Rural Studies have released the Vermont Economic Development Roundtables Report: Amplifying Vermont's Economic Resilience.

The report comes out of discussions with 75 leaders from around the state about impediments to economic resilience and potential solutions. A total of eight roundtable sessions were held beginning late in the winter of 2021 with Vermonters representing diverse sectors from across the state including professionals in workforce development, public and private finance, arts and culture, government, social services, and education and research.

“The findings from these conversations will not surprise those who care deeply about the health and well-being of Vermonters,” the report says. A consensus around what economic resilience looks like for our state emerged: “one that sees our state’s private and nonprofit sectors thriving, our poorest residents elevated to higher qualities of life, full employment, few job vacancies, affordable housing, healthcare and childcare for all, a welcoming and inclusive society where newcomers are able to make a living and a life here in the Green Mountain State.”

The concept for the roundtables was developed by the Vermont Futures Project, an initiative of the Vermont Chamber of Commerce Foundation. The research questions used to frame and implement the Economic Development Roundtables centered on two goals: 1) defining what successful community economic development looks like for our state and 2) surfacing the major challenges and opportunities to help Vermont’s rural economy compete in a post-pandemic world.  

“In 2020 the Vermont Futures Project evaluated and assessed the relevancy of our current data points and targets in light of the economic disruptions presented by COVID-19,” said Lori Smith, Vermont Futures Project Director. “As a result of this process we created a series of relevant research studies to support projected post-pandemic economic conditions. As it turned out, these research study topics provided a very helpful starting point to develop the UVM economic resiliency framework.”

Speaking on the motivation for the study, the Office of Engagement Director and Professor of Community Development & Applied Economics Chris Koliba adds, “As the UVM Office of Engagement was getting off of the ground, we needed to better understand the full range of challenges and opportunities facing the state. We initiated the roundtable study to assist in building our network ties, and envision ways that UVM can be supportive of serving the needs of all of Vermont.”

Challenges

Roundtable participants identified 14 challenges to economic resilience in Vermont.

  • Workforce: Workforce-employer gaps lead to high levels of job vacancies in a state where unemployment rates are historically among the lowest in the country. A repeated theme in the roundtables concerned the lack of availability of willing and able workers that align with current needs.
  • Equity regarding race and gender. Lack of social equity, cultural diversity, and inclusivity stifles economic development and innovation. Women in Vermont face equity challenges in the workplace and the community.
  • Affordability: Low wages cause affordability challenges. In addition, high economic and environmental costs of heating and cooling hamper Vermont’s affordability.
  • Investment: Limited levels of public and private investment, and risk and patient capital within rural communities challenge innovation.
  • Education: Educational systems are not sufficiently designed for preparing Vermont’s young people to find meaningful and well-paying career pathways. Also cost of universal early childcare and preschool places burdens on working and young parents.
  • Broadband: Poor broadband access hinders Vermonters’ abilities to work and learn from home and limits capacities of small rural businesses.
  • Digital Economy: The emerging “digital economy” is leaving rural communities behind. The bulk of future digital jobs will lie in one’s home.
  • Housing: Chronically poor housing availability limits population growth and creates inequitable access to affordable housing
  • Transportation: High transportation costs and inadequate public transportation infrastructure hampers Vermont’s affordability.
  • Infrastructure: Aging infrastructure in Vermont communities and town centers serves as a limiting factor for sustainable growth.
  • Environment: Threatened working landscapes and waterways can spoil one of Vermont’s greatest virtues. Drawing on Vermont’s natural capital and aesthetic appeal was also raised as a critical factor in most roundtables. 
  • Demographics: Vermont’s aging demographic trends contribute to labor shortages and increased demands on services.
  • Healthcare: Lack of access to healthcare contributes to poor health outcomes for rural communities and low-income households in Vermont.
  • Coordination: Gaps in coordination and governance creates to address prior conditions are not well suited to address present challenges.

Opportunities

Roundtable participants identified emerging opportunities in community economic development for Vermont, and made preliminary recommendations that highlight initiatives and programs already underway to leverage and support achieving goals in these key opportunity areas. Some of these areas, including both the social and physical infrastructure, may be eligible for federal pandemic recovery funding. 

Growing a skilled workforce. Participants strongly emphasized the opportunity of re-skilling and up-skilling activities to address the dynamic needs of employers, while also providing individuals with stable and secure employment opportunities.

Focus on racial equity and building inclusion and belonging in communities. In every roundtable, the issue of race, equity, inclusion, and belonging arose as a key element of community economic development in Vermont. 

Build investments for entrepreneurial enterprises. The ability to leverage the growth in innovation hubs, enterprise accelerators, maker spaces and co-working spaces that are emerging across the state was viewed as a critical opportunity to build upon.

Promote and sustain a remote workforce while maintaining thriving town centers. The COVID-19 pandemic forced many Vermonters to work-from-home for a certain length of time while also enabling others seeking refuge from places outside of the state to work remotely for their employers.

Leverage Vermont’s quality of life as a critical feature in jobs attraction. The “Vermont lifestyle” is increasingly attractive given the conditions of the pandemic. A recent survey of individuals and families “sheltering in place” in Vermont due to COVID-19 showed that one-third of respondents indicated that they were “likely” or “very likely” to remain in Vermont after the pandemic.

Appreciate the role of the non-profit sector as a critical feature of the Vermont economy. Vermont has one of the highest number of non-profits per capita in the country. The state's non-profit sector is an important provider of social services and civic infrastructure while also providing meaningful employment for a large number of Vermonters.

Invest in education, childcare, and preschool. The economic repercussions of inadequate childcare and access to education were a prominent theme amongst roundtable participants. From a challenge perspective, many roundtable participants indicated that Vermont’s educational system fails a significant number of young people.

Invest in broadband, housing, transportation, water, and energy infrastructure. A continued challenge for Vermont communities is poor housing and commercial property availability, quality, and cost. New investment mechanisms for concentrated, mixed-use development, and thoughtfully designed downtowns and neighborhoods could mediate this issue.

Pursue a collective impact approach to economic and workforce development, rooted in social equity. The networks of service providers working across the state to support economic development, public financing, arts and culture, social service delivery, planning, education, and workforce development provide an opportunity build a shared vision of economic success. The interconnectedness of economic and community life in Vermont requires a new approach to considering developmental paths forward that “lifts all boats” and positively impacts the lives and well-being of all Vermonters, with a focus on our most marginalized communities.

Koliba adds, “a major take-away from this study is the need for more coordinated action among stakeholders.  In this report we lay out a vision for pursuing a collective impact approach to economic resiliency that we look to advance with partners across the state. These actions include creating a communications hub for community economic development and evolving our state’s data infrastructure. We believe that supporting these activities feed into UVM’s land grant mission.”