Richmond forecast 2011.

• Author: Rogers, Tim G.
• Position: Economy

With the national recession ending in June 2009, most experts feel a double-dip recession has been narrowly avoided. However, despite the end of the recession, growth and job creation remain stubbornly stagnant. (1) As was pointed out in last year's Richmond forecast, (2) the recession only exacerbated the problems Richmond and Wayne County faced, including the loss of manufacturing jobs, decreasing population, increasing global competition and diminishing tax revenue. The end of the recession won't cause those issues to go away. Nonetheless, Richmond and Wayne County did see new investment from the private sector continuing from 2009 into 2010.

Investment Activity and Trends for 2009-2010

As last year's forecast stated, entrepreneurial businesses were finding ways and reasons to expand their product lines, retain and create jobs, and increase investment in Wayne County. Local entrepreneurs felt confident enough to take advantage of opportunities to purchase companies, while others diversified product lines to be more competitive, keeping investment and jobs in the community. The Economic Development Corporation (EDC) of Wayne County partnered with existing companies in retention and/or expansion projects creating close to $11 million in private investment for 2010. With the most recent announcement by Perpetual Recycling Solutions to locate a new facility in Richmond, the investment total for 2010 so far totals $40.8 million. In 2009, projects in the county resulted in $11.5 million in investment. The two years combined resulted in $52.3 million in new, private investment.

A number of trends started in 2009 that continued through 2010:

The plastics sector has seen an increase in activity, particularly in manufacturing of food containers.

* Berry Plastics, a manufacturer of plastic food containers, expanded in 2009.

* While Innatech, which manufactured plastic automobile components, closed its operation, Abbott Laboratories purchased the building and continues to operate a manufacturing line that produces plastic containers for their baby formula and health food lines.

There has been an increase in activity in the renewable and recyclable sectors.

* Crate Creations added a new line that manufactures biofuel and animal bedding from scrap wood pallets.

* Perpetual Recycling Solutions announced they will locate a new operation in the former General Aluminum facility, recycling water bottles into food-grade plastic flake for food container...