“Eggs, Meet Basket” The Value of a Diverse Economy
The age old idiom “Don’t put all your eggs in one basket” means that one should spread around their resources and efforts across a variety of areas to reduce risk. For example, why would you base the prosperity of your organization on one account or industry? You might enjoy success in the short term, but a singular focus is rarely sustainable. Diversity allows one to withstand the winds of adversity and the waves of uncertainty.
The effects of the current COVID-19 pandemic have clearly demonstrated to the Town that our diversified economic strategy is sustainable. Population growth fuels our economy. Our reputation as a corporate headquarters location pays countless dividends. National retail balanced against unique small businesses provides us with options. Our infrastructure access allows logistics and manufacturing businesses to grow and thrive in our market. Let’s explore further the value, meaning and impact of our diversified economy.
Let’s Live Here!
The 2000 census reported a population of 31,872, while Collierville’s 2019 population estimates, per The American Community Survey, show 52,613 residents today. Broken down, that’s a population growth of 65% in 20 years. With a median household income of $110,724 and 58% of our growing population holding a bachelor’s degree or higher, home builders, retailers, restaurants, corporations and investors conclude Collierville has all the ingredients necessary for continued investment and expansion.
Would You Like Me to Box That Up?
A major concern has been COVID-19’s impact on sales tax revenues, which fuel our police, fund our fire department and provide the financial resources to manage our growing community. COVID-19’s impact in this area has been painful, but manageable. Many communities’ sales tax revenues make up 40% to 60% of their annual budget. Collierville falls in the 20% to 25% range: dependent, but not solely dependent.
Our retail businesses fell in our favor. Big-box retail brands such as Wal-Mart®, Target®, Kroger® and others reported sales spikes. If these businesses had closed, the impact could have been devastating. Our diverse big-box retail mix, coupled with a “Shop Local” push, has helped our Town navigate through these uncertain retail waters.
Location, Location, Location
COVID-19 has made clear our society’s ever-increasing dependency on e-commerce. Collierville is poised for distribution and e-commerce related business growth, as businesses will require access to markets and assets. With over 300 acres of developable industrial land in the Town’s southeastern zone, expect elevated activity there over the next few years. Logistics-related enterprises will soon join IPS Corporation®, FedEx TechConnect®, Carrier® and many others in providing jobs and commerce for our Town.
A growing citizenry, a base for corporate partners and a mix of retail options position Collierville to withstand almost anything. Collierville will continue to support national and local retail, corporate campuses and industrial commerce, all as part of our sustainable economic diversity strategy.
John D. Duncan
Director of Economic Development
500 Poplar View Parkway
Collierville, TN 38017