Governor: Diversify to boost economy

Bob Shemeligian

Thursday, Nov. 13, 1997 | 11:15 a.m.

Gov. Bob Miller believes that in order to ensure the growth of Nevada's economy, officials should look more and more outside tourism, the state's No. 1 industry.

In prepared remarks to be delivered today at the two-day Governor's Economic Development Conference being held at Caesars Palace, Miller noted that diversification is the key to economic growth.

"Nevada has built a solid and secure base of incentives and we have unbeatable communities, but it takes more than that to improve and diversify our economic base," Miller said.

Despite rapid growth of the casino industry in the past decade, Miller noted that trends that led to the successes during the 1990s are changing.

"There is a need to adapt our strategies to the new era of change," Miller said. "We must ensure that our existing companies remain prosperous and the Nevada marketplace continues to grow."

Miller said more should be done to attract foreign investors and to encourage the growth of biomedical and technological industries. He also said more efforts should be made to encourage the motion picture and television industries to film in Nevada.

"These are industries that our workforce can depend on for long-term employment and expansion -- industries that add to the strength of our economy as a whole."

Miller stressed that achieving these goals will require cooperative strategies and partnerships between private industry and state and local governments.

"This relationship has been exceptionally strong, yet it will be tested in the years to come," Miller said. "Let's work hard now to ensure that our partnership continues to be productive."

Miller also said that to properly prepare for the future, "we must know our past."

The governor noted that a decade ago the Silver State had an entirely different set of economic indicators, "far different from the boom we have enjoyed the last several years."

In 1988, according to Miller, Nevada's growth was at 5 percent compared with 7.2 percent today.

"Back then, our gross state product was at $25 billion, now we are well over $43 billion."

Miller praised Nevada as a state that has ranked first nationally in virtually every category of economic growth.

"Even the Commission on Economic Development would have been hard-pressed to anticipate this growth rate," Miller said. "In 1989 it projected that Nevada's population would hit 1.6 million by the year 2000. I guess it's no surprise to all of you that we in fact surpassed that number last year, and just last week the state demographer reported we are at 1.8 million people. While growth in Las Vegas has attracted national attention at 6 percent, Reno is at 4.9 percent, Elko at 5.9 percent and Fallon is at 6.1 percent."

Still, Miller warned that just as there is no such thing as a sure bet in the gaming industry -- continuation of growth in Nevada certainly is not a guarantee.

"California and other states have begun aggressive campaigns to keep and attract new business," Miller said. "Whereas nearly 50 percent of all company relocations to Nevada came from California in 1996, only 25 percent came from California in 1997. This dramatic shift is evidence of an ever-changing business environment, and provides us with some indication about how we need to focus our attention."

archive