The Interwoven Nature of Infrastructure in Economic Development

13 Mar 2024

Economic Development

By Rick Kiernan

Infrastructure serves as the backbone of economic development, playing a crucial role in facilitating the movement of goods and people, providing essential services and supporting business operations. However, inadequate or deficient infrastructure can significantly impede local economic growth and competitiveness. From transportation networks to utilities and digital infrastructure, each component plays a vital role in shaping the economic landscape of a region.

Every thriving community must plan for existing infrastructure maintenance and repair or upgrade with the latest technological advancements to deliver an economic advantage for local players. Those endeavors will only happen with proper financial planning. Convergent Nonprofit Solutions plays a vital role as a fundraising partner in supporting infrastructure initiatives and economic development efforts. By leveraging its fundraising strategy, donor engagement and campaign management expertise, Convergent helps communities and organizations secure the necessary funding for projects across numerous infrastructure segments, all critical in their manner.

Transportation

One of the primary pillars of infrastructure crucial for economic development is transportation. Efficient transportation networks, including highways, railways and ports, connect businesses to markets, suppliers and customers. Inadequate transportation infrastructure can lead to increased transportation costs, longer delivery times, and limited access to key markets, thereby hindering business growth and investment.

For example, a study by the American Society of Civil Engineers (ASCE) found that billions of dollars are lost yearly due to lost productivity and increased vehicle operating costs with deteriorating U.S. highways and bridges. According to the study, the nation’s motorists spend nearly $130 billion each year on extra vehicle repairs and operating costs. Similarly, congested ports and inefficient rail networks can limit the competitiveness of businesses, particularly those reliant on timely and cost-effective transportation of goods.

Utilities

Utilities infrastructure, including water, sewer and energy systems, is another critical component of economic development. Reliable and efficient utilities support industrial operations, commercial activities and residential communities.

Chatham County Economic Development Corporation, a Convergent client located in Pittsboro, North Carolina successfully recruited microchip manufacturer Wolfspeed in part because they worked with the City of Asheboro, in neighboring Randolph County, to ensure they could provide the 3.3 million gallons per day of water Wolfspeed expects to need.

Lack of access to modern utility infrastructure can deter businesses from locating or expanding in a region, impacting economic growth and job creation. Aging infrastructure, inadequate maintenance and underinvestment can lead to service disruptions, higher operating costs, and business retention. Moreover, concerns about water quality, sewer capacity and energy reliability can undermine confidence among investors and businesses, limiting economic opportunities.

Digital Resources

In today’s digital age, access to high-speed broadband internet is increasingly recognized as essential infrastructure for economic development. Broadband connectivity enables businesses to leverage digital technologies, access online markets and engage with customers worldwide. It also supports remote work, e-commerce and innovation-driven industries.

However, broadband access and digital infrastructure disparities can exacerbate inequalities and limit economic opportunities, particularly in rural and underserved areas. According to the Federal Communications Commission (FCC), millions of Americans lack access to high-speed internet, hindering their ability to participate in the digital economy and access educational and healthcare resources.

Addressing Infrastructure Challenges

Proactive measures and strategic investments are necessary to address infrastructure challenges and foster economic development. As a result of Raleigh, NC being one of the fastest growing metros in the country, the Greater Raleigh Chamber of Commerce has prioritized infrastructure in its new five-year plan. The Chamber plans to convene an Infrastructure Task Force to complete Wake County’s first Comprehensive Infrastructure Plan. Dedicating resources, funding, and leadership to any number of projects can be the difference between a community’s continued economic validity and a sliding backward decline.

Investing in infrastructure upgrades and modernization projects can improve transportation networks, utility systems and digital connectivity. Prioritizing infrastructure resilience and sustainability can mitigate the impacts of climate change and natural disasters.
Economic development leaders can collaborate with public and private sector partners to leverage infrastructure planning and implementation resources and expertise.
Combining innovative technologies with best practices can enhance the efficiency and effectiveness of existing infrastructure systems, reducing the prohibitive costs of entirely new construction.
Economic development leaders should proactively engage communities and stakeholders in decision-making to ensure infrastructure investments align with local needs and priorities.

How Convergent Nonprofit Solutions Can Help

Convergent Nonprofit Solutions can be a critical partner in helping economic development organizations along the path of infrastructure management. Through strategic fundraising campaigns, we mobilize financial resources from public and private sources to support infrastructure upgrades, expansion projects and technology investments. By engaging with stakeholders and donors, we can help you build momentum for infrastructure initiatives and generate broad-based support for economic development goals.

Infrastructure is a fundamental driver of economic development, encompassing transportation, utilities and digital connectivity. Addressing infrastructure challenges requires proactive investments, collaboration and innovative solutions. With its fundraising expertise, Convergent Nonprofit Solutions helps communities and organizations overcome funding barriers and achieve their infrastructure goals, paving the way for sustained economic growth and prosperity.

Visit Convergent Nonprofit Solutions today to learn more about how we can support your infrastructure and economic development initiatives.

About The Author

Rick Kiernan

Principal

Department: Team

I fell into nonprofit fundraising in the mid-90s by complete chance through a friend of a friend. I had no idea the industry existed, and it’s fascinated me ever since. The work I do truly makes a difference. I can visit client communities across the country and see new YMCAs and animal shelters, affordable housing for those who need it most, economically-thriving communities, and more – all because of the funding I helped raise. It’s difficult to call my work a job; it’s easy to call it my passion.

On a personal level, two nonprofit missions resonate most with me. The first are those organizations that work with low- to moderate-income individuals and families, which include community health centers, affordable housing, shelters, crisis assistance, food pantries, and more. The difference we can make in the lives of our fellow man is truly significant, and I’ve witnessed this firsthand across the country. The second mission that resonates with me are animal shelters. My wife and I don’t have children, but we adopted two dogs who changed our lives forever. We’ve since fostered and adopted again, and we plan to continue doing so for as long as we can.

This work humbled me. Nonprofits help others. You can plan on conquering the world… until you see someone in need. Then nothing else really matters. Since joining the fundraising industry in 1996, Rick has provided counsel in dozens of nonprofits in communities throughout the nation. His expertise has resulted in raising more than $200 million for nonprofits including economic development organizations, chambers of commerce, promise programs, affordable housing organizations, community development organizations, charter schools, YMCAs, humane societies, and the Boy Scouts of America. This diverse assortment of fundraising experience provides Rick with a rare, well-rounded understanding of all aspects of community fundraising – both economic and community development.

Rick previously served as the founder and President of Integrity Fundraising, a boutique firm that worked with just a few clients every year. His intimate and extensive involvement in every project led to a long list of happy clients and references, and he brings this focus on quality to Convergent.

Although Rick has clients across the country, he spends the majority of his time working with clients in the Carolinas and attending SCEDA and NCEDA meetings and events.

Summary of Experience

Led feasibility studies and/or capital campaigns in 15 different states throughout the country, from South Carolina to Massachusetts to California.
Graduated from numerous leadership and training initiatives, including:
- US Chamber’s Institute for Organizational Management (2014).
- South Carolina’s Economic Development Institute (2014).
- Boston Chamber’s Future Leaders (2007).
- Leadership MetroWest (2006).
- Leadership Raleigh (2001).
Serves on many nonprofit boards, including:
- North Carolina Economic Developers Association (2014-2017).
- Boston Minuteman Council, Boy Scouts of America (2009-present).
- Natick (MA) Economic Development Council (2010-2012).
- Natick (MA) Affordable Housing Trust (2009-2011).
Executive MBA from the University of North Carolina’s Kenan-Flagler Business School and BA in Business Management from North Carolina State University.