Hello,

Four months ago the Alaska Partnership for Economic Development (APED) partnered with a team of nationally recognized consultants, embarked on a comprehensive Situational Analysis of Alaska’s economy and the Alaska Forward Initiative was born.

With the intent of not repeating history and realizing that real economic development begins and ends with people, we began by reviewing  reports on the Alaska economy done over the years and conducting extensive, personal interviews and meetings with some of the state’s business leaders and heads of Alaska economic development organizations. In conjunction with these interviews, we reviewed the results of an online survey that drew nearly 300 responses from an engaged public voicing concerns and suggestions for Alaska’s economic future. One constant theme was expressed during the interviews and in the online surveys: Lack of leadership is hindering Alaska’s economic development future.

In the coming weeks we will release Phase I: Situational Analysis to the Parnell Administration, the Alaska State Legislature and the Alaskan public in preparation of the transition into Phase II: Developing and Implementing a Statewide Strategic Economic Development Plan.

A  Brief Summary of the Alaska Forward Initiative
Following data collection the consultants worked on additional tasks to provide a clear roadmap of where our economy is and how we got here. As with the interviews, theses tasks uncovered various “nuggets” that will prove invaluable during Phase II. Some of these include:

• Alaska’s Gross State Product (GSP) has been stagnating over the past 20 years compared to the rest of the nation and, although employment has seen years of growth, per capita income is declining;

• Ten established industry clusters (business sectors) were identified, but as we dug deeper into the data we discovered clusters with the greatest growth potential included: Community and Social Services, Advanced Business Services, Logistics and International Trade, and Travel and Tourism; and

• Alaska exports represent only 7.4% of GSP compared to the National Average of 12.7% and a large portion of these exports are from our mature clusters. These clusters represent a high employment concentration but below average growth prospects.
  

• The Alaska State Chamber of Commerce Legislative Tie-In;
• Alaska Municipal League’s Annual Local Government Conference;
• Resource Development Council’s (RDC) Annual Conference; and
• An Alaska House of Representatives Community & Regional Affairs Committee hearing on economic development in Alaska.

Gathering Support
Recently, Governor Sean Parnell sent a letter of support for Alaska Forward and included $100,000 in his Fiscal Year 2011 budget towards funding Phase II. Additionally, both the Alaska State Chamber of Commerce and the Alaska Municipal League formally expressed their support for the Initiative.

As I pointed out earlier, economic development rests with the people of Alaska. State government cannot champion this effort alone, nor can APED. We need your support as we utilize the data from the Situational Analysis for the implementation phase of Alaska Forward.

With direction and support from private sector leadership, we will form working groups based on the clusters identified in the Situational Analysis. Through these working groups, we will create a practical economic development implementation plan for the state. During Phase II, we will host a Statewide Economic Development Summit where representatives from the different clusters will develop a common understanding of the data, identify common goals and indicators of success, and discuss strengths, weaknesses, opportunities and threats. They will then identify action items and actively work together with our local and state governments on these as we move forward to a next generation economy.

Our experts have identified the challenges; it’s now up to us to take action. The data gathered during Phase I is a hard, but honest look at where Alaska’s economy currently stands and where we are headed.

This is a momentous occasion for the state of Alaska and to ensure the most complete statewide effort is made we need your help. If you have questions about how to get involved, please contact me at information@alaskapartnership.org. For more information on Alaska Forward, please visit www.alaskapartnership.org and for the most up-to-date information you can follow us on Facebook.

Thank you for supporting the Alaska Forward Initiative!

Ron Miller