Here’s why West Valley needs economic diversification

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    Over the last year, when the state of Arizona’s economy as a whole was generally seen to be in a rather dark and scary place, the West Valley stood out as a shining example of economic success.

    West Valley cities have flourished over the last several years, as businesses of all stripes have moved there. The area has been on the upswing in several areas, including commercial and residential real estate, healthcare, employment, manufacturing, and supply-chain management.

    The city of West Valley (WVC) in Utah is the most culturally diverse in the state and is quickly becoming a popular destination for Utah’s most skilled young professionals. WVC is a great place to live since it has a vibrant restaurant and cultural scene, and its new single-family homes and luxury apartments are more reasonably priced than those in other areas. There is always something to do in West Valley City since it is home to the Maverik Center and the Utah Grizzlies of professional ice hockey, 

    “During the COVID epidemic, the West Valley has assumed a unique position in our area”, according to Suzanne Kinney, president, and chief executive officer of the Arizona Chapter of NAIOP. The West Valley is home to several warehouses and distribution hubs that ensure the timely delivery of necessities to the local populace despite the rise of internet shopping. Even though West Valley has a diverse economy, it should be stated that it needs to have more diversity in the economy. In this article, we’ll explain why. 

    A diversified economy means more benefits

    A diverse economy is better able to sustain a variety of firms, which is one of diversification’s main advantages. For instance, office supply businesses are essential for huge workplaces. Lumber yards are essential to construction businesses. Convenience shops, pharmacies, and other such businesses are necessities for families.

    When a nation shifts to a more diversified production and trade structure, this is known as economic diversification, and it is a crucial part of economic progress. Diversification lessens the impact of shocks and creates a steadier foundation for inclusive expansion and development. When we talk about the trading industry here, we mean trading in financial markets as well, where the biggest market around the world is the Forex market. When it comes to Forex trading, there are many things that are worth considering. One of the important ones, among others, is to find a proper Forex broker. Nowadays, it should be stated that the top rated FX brokers for Saudi clients provide several services that are quite helpful in the process of trading. Given the current climate of slowing global development and the pressing need in many emerging nations to boost the quantity and quality of their workforces, successful diversification has never been more crucial.

    The expansion of the trading sector in WVC stimulates the development of ancillary markets. A larger population? The need for services like daycares, schools, builders, doctors, etc., would increase accordingly. An expanding community’s demand for products and services may be met by a more robust economy. When demand is high, supply tends to rise to meet it.

    It is crucial for sustained development to shift labor from low productivity employment, mostly in agriculture, to higher productivity occupations in a variety of predominantly urban industries characterized by significant agglomeration economies. Although many developing nations stand to benefit from a demographic dividend because of rising labor force participation rates, doing so may prove difficult in the absence of economic diversification and private sector development that creates new jobs.

    Additional things to know

    The ability to adapt to changing circumstances is one of the greatest advantages of a diverse economy for WVC. The vitality of an economy does not depend on any one business or market segment. This implies that the local economy won’t feel the cold of global economic circumstances even if oil prices fall or grain prices tumble. This helps keep other sectors afloat, keeps people from losing their jobs, and keeps home prices from plummeting. Over time, communities may recover from the shock and move forward.

    The increase in trade is crucial to the creation of new, higher-productivity employment that will enable growth via structural change. Many nations have been able to reduce poverty by significantly diversifying their economies thanks to their participation in the global economy. A primary goal of export diversification should be to lessen exposure to unfavorable terms of trade shocks and stabilize export income.

    A further perk of a varied economy for the West Valley is the rise in creative problem-solving that always follows. Companies rely on one another for more than just financial support; they also share ideas and innovations. When one company expands, the one next to it could start working on a product that would greatly help the first company’s productivity and bottom line.

     

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