by Stephen Kimball
Since 1964, Tompkins County Area Development (TCAD) has continually worked for the benefit of the community. Through the changes in Tompkins County’s economy—its ups and downs and the transformation of key industries—TCAD’s mission has remained clear: create good jobs; real jobs for real people. With an average non-managerial wage of $19.00 an hour for the jobs created by our projects, TCAD takes its commitment to the creation of jobs that elevate the quality of life and sustainability of our community seriously.
While working with business, not-for-profit, higher education, and public sector organizations, we fulfill our mission by assisting in the formation, retention, expansion, and attraction of target businesses. As the community's lead economic development agency, TCAD offers financial assistance, technical assistance and real estate development services. TCAD is also responsible for creating and implementing the comprehensive economic development strategy for the county that provides leadership to create a supportive economic environment.
In the past, TCAD, like many others, saw job growth and an economy tied to durable goods manufacturing. However, while BorgWarner Morse TEC is still an important and thriving business and employer in Tompkins County, on the whole, this area of our economy has been in decline. For example, Emerson Power Transmission’s decision to close its Ithaca facility is another indicator that future of Tompkins County’s economy lays along a different path.
Currently, we still see strength in the light-manufacturing sector of our economy. Companies such as TransAct, Incodema, Ithaco Space Systems, and C&D Assembly are a few of the businesses that continue to do well, providing good jobs for local residents.
Education is also a major force in our economy. With Cornell University, Ithaca College, and Tompkins Cortland Community College located here, their influence has traditionally provided insulation against the ups and downs of the economy. With the latest recession however, our education sector was affected. This was a good reminder to us that while we have been fortunate, and often avoided the worst elements of economic crises, we are not immune. That being said, education is still a strong and critical component of our economy.
The characteristics of success we’ve seen in the past, and what continues to make the economy of Tompkins County so strong are one in the same. These are local entrepreneurs, technology, facilities, capital, and workforce.
First, and perhaps foremost, the presence of a strong entrepreneurial community in Tompkins County has been, and continues to be, one of our greatest keys to success. Simply put, entrepreneurs breed more entrepreneurs. The support of organizations such as, TCAD, the Finger Lakes Entrepreneur’s Forum and Entreprenuership@Cornell ensures that the culture of entrepreneurship flourishes and therefore benefits our economy.
Secondly, the technology coming out of the businesses and educational institutions in Tompkins County is second to none. With technologies as diverse as enhancing battery technology, innovations in reading education, miniature digital projectors, and environmentally responsible composite materials, we are on the cutting edge of the creation of technologies that not only benefit our economy. They benefit the larger world as well. For us, this is truly a winning situation.
The facilities that are available for local business also have a great impact on supporting our economy. South Hill Business Campus is an excellent example of this. Located in the former home of National Cash Register, a brown field site, South Hill has been transformed into one of the most important facilities we have. The tenants range from high tech entrepreneurial companies to a nonprofit, vocational services organization. There is also the Cornell Business and Technology Park, home to many exciting businesses including Kionix, which was recently acquired by the Japanese firm, Rohm. The company, however, is staying here. Additionally, the Cornell park has its Langmuir Lab building, which acts as a business incubator for many of the high tech start-up companies that have chosen to begin and grow their businesses here.
Ask any growing company what it needs to be successful, and capital is bound to be at the top of the list. This is especially true for high tech start-ups. Fortunately, Tompkins County has its very own homegrown venture capital firm, Cayuga Venture Fund (CVF)—which TCAD helped to start. Now in its 4th round, CVF has provided capital to some of our most important firms, including Advion BioSciences and the aforementioned Kionix. As great as the Cayuga Venture Fund has been, it’s not able to meet all of the venture capital needs of the companies flourishing in the Ithaca area. While Ithaca is not Silicon Valley or Boston, many of our companies have been able to secure venture funding from some of the major VCs. Better yet, they’ve done it while staying in Tompkins County, creating their jobs and investments here.
As the recent workforce strategy completed by TCAD and the Tompkins Workforce Investment Board shows, the Ithaca area has a very well educated workforce that is able to take on many of the jobs that our economy is producing. However, firms must still recruit to fill specialized occupations. This brings new residents to our area and, in turn, expands our tax base, as these people spend their money and purchase homes in the county.
Tompkins County is not without its challenges. While many firms have been able to take advantage of CVF and other outside venture capital, there is still a real need for more seed capital to help existing businesses and new start-ups. In addition, we have a general shortage of housing at all price levels. While local efforts have been successful at creating housing development, it will take a number of years to address the shortages.
With all of this said, where does the future of Tompkins County’s economy lie? For TCAD, we see the future of our economy tied to the high tech, innovative companies that are taking root here. These firms are not only creating excellent jobs, they are building a culture of innovation here that will inspire the economy of Tompkins County well into the future. The list of high tech companies is long. A few that have recently been in the news are e2e Materials, Primet Precision Materials, Sound Reading Solutions, and Widetronix. And before we know it, there’ll be another company started by a smart, passionate individual or group of people committed to the Ithaca area and ready to bring something exciting and innovative to the market.
*This article was originally written for the CNY Business Exchange Magazine