In general, the North State is more dependent than California as a whole on resource-based industries, such as agriculture, timber, fishing, and nature-related tourism. This reliance on resource-based industries suppresses the income levels of the region because the dominant industries are not highly value-added. Due to a combination of overharvesting and restrictions on production, counties that rely on the timber and fishing industries need to attract new industries to reverse declines in incomes and increases in poverty rates. The reliance on the extraction of natural resources has not in recent years been a viable economic development strategy. However, value-added agriculture has proven to be a viable option to generate more revenue from the region’s production. Areas with institutes of higher learning, such as Butte and Humboldt counties, have fared better than other North State counties. These counties are better positioned to attract new, diverse industries because they can provide training opportunities through the colleges, as well as providing a better educated workforce for technical, professional and managerial positions. College towns also often offer a wider array of cultural and quality of life amenities that can help to attract residents and new industry. Growth in Chico provides an example of such development. Tourism continues to be a viable economic development strategy for many North State counties, despite seasonal limitations. Visitors spend roughly $2.4 billion per year in the North State and tourism-based employment accounts for nearly 33,000 jobs. Tourism-based employment has declined recently, but it had fared better in the North State than the rest of California prior to the Great Recession. Agricultural and food products account for $7.0 billion in value to the North State, representing nearly 57 percent of all commodity values in the region. This group includes several types of commodities: tree nuts; canned, pickled, and dried fruits and vegetables; flour and malt; beer, wine, and other alcoholic products; grains; fruit; and other crop farming products. Wood products account for $1.5 billion in North State production, which along with machinery and metal products is second to the nearly $7 billion produced by agriculture and related
In general, the North State is more dependent than California as a whole on resource-based industries, such as agriculture, timber, fishing, and nature-related tourism. This reliance on resource-based industries suppresses the income levels of the region because the dominant industries are not highly value-added. Due to a combination of overharvesting and restrictions on production, counties that rely on the timber and fishing industries need to attract new industries to reverse declines in incomes and increases in poverty rates. The reliance on the extraction of natural resources has not in recent years been a viable economic development strategy. However, value-added agriculture has proven to be a viable option to generate more revenue from the region’s production. Areas with institutes of higher learning, such as Butte and Humboldt counties, have fared better than other North State counties. These counties are better positioned to attract new, diverse industries because they can provide training opportunities through the colleges, as well as providing a better educated workforce for technical, professional and managerial positions. College towns also often offer a wider array of cultural and quality of life amenities that can help to attract residents and new industry. Growth in Chico provides an example of such development. Tourism continues to be a viable economic development strategy for many North State counties, despite seasonal limitations. Visitors spend roughly $2.4 billion per year in the North State and tourism-based employment accounts for nearly 33,000 jobs. Tourism-based employment has declined recently, but it had fared better in the North State than the rest of California prior to the Great Recession. Agricultural and food products account for $7.0 billion in value to the North State, representing nearly 57 percent of all commodity values in the region. This group includes several types of commodities: tree nuts; canned, pickled, and dried fruits and vegetables; flour and malt; beer, wine, and other alcoholic products; grains; fruit; and other crop farming products. Wood products account for $1.5 billion in North State production, which along with machinery and metal products is second to the nearly $7 billion produced by agriculture and related
Chapter_3-3_Economic_Context_of_Freight_post.docx