Diversity creates more opportunities for New Jersey arts

To cultural visitors, Northern New Mexico is known for its connections to the Pueblo people and colonial Spanish heritage.  Western North Carolina has a mountain crafts chic.  South Florida has a subtropical, Caribbean vibe.  What's Jersey's "brand" as an arts market?

I don't know either.  Nestled between two of the biggest arts cities in the country, New Jersey faces both major challenges and opportunities.  The biggest challenge is distinguishing the arts in the state's communities and regions from that in New York City and Philadelphia.   A big opportunity is the wide range of diversity in such a small area.

New Jersey is more diverse in more ways than most other areas of the United States.  From most parts of the Garden State, you are within an hour of both a historic, international city and a classic American farm.  New Jersey is one of the most ethnically diverse areas of the country.  Millions of people with ties to dozens of countries live in the state.  According to the American Community Survey, an estimated 97% of the state's population reported having ancestries other than "American."

Some other good reasons to build on the state's diversity:  Buying power in New Jersey grew more than 19% in the last 10 years, and a big part of the growth is from the multicultural economy  (African-Americans, Latinos and anyone else not considered ethnically "White." )  Buying power is the amount of money available after taxes.  According to the Selig Center for Economic Growth at the University of Georgia, ethnic minorities in the New Jersey hold about $109 billion in buying power -- about 27% of the $399 billion in buying power in the state.

Latinos in New Jersey have about $39 billion in buying power -- about 10% of the state total -- and their buying power has increased by nearly 58% since 2000.  African-Americans control about $32 billion, and their buying power has increased by nearly 14%.  Asian-Americans hold about $30 billion in buying power, and their buying power has increased by about 55%.  Non-Hispanic Whites still hold the most amount of buying power -- $290 billion -- but the increase there is less than 8%.  (The changes reported account for inflation).

More than 371,000 minority households in New Jersey have incomes of more than $75,000; nearly 244,000 have incomes of more than $100,000, according to the most recent American Community Survey estimate.

These kinds of numbers create real opportunities for small and mid-sized communities to get more involved with the creative economy.  In older industrial communities like Paterson, Perth Amboy and Camden, the arts can play a bigger role in their economic development strategies.

Even in Essex County, one of the busiest arts areas in New Jersey (Think about Newark, Montclair, Maplewood, Orange and South Orange) diversity creates opportunities.  With its large West Indian and Black population, East Orange could focus on Afro-Caribbean arts.  About 15% of New Jersey's population has Italian ancestry. Imagine an Italian-American arts and heritage trail along Bloomfield Avenue from North Newark to West Caldwell.

But if these and other communities want to make this happen, they should plan to work for it.  It would be a mistake to expect that a group of artists by themselves will create an arts environment that attracts visitors and supports businesses.  It might happen, but probably won't.  Communities that help local artists are likely to be more successful sooner than those that don't.

While arts communities compete with one another for artists and visitors, having more arts districts and communities benefits everyone. The more different types of arts activities and experiences there are, the longer visitors will stay and the more artists a region will attract.  More people and more artists can bring even more people and more artists.  All that means more money going into and staying in a region. The longer people stay, the more likely they are to buy food and gifts and rent hotel rooms. Tourists who enjoy the arts tend to be wealthier, spend more and stay longer than other types of visitors.  In Santa Fe, Asheville and other places, arts and cultural activities attract buyers of second and retirement homes. (In other words, people who pay property taxes but don't have children in the school system.)

In other words: More arts can lead to more prosperity, even for people who have no connection to the arts. New Jersey's diversity not only creates more opportunities for more communities, it creates the potential to generate more distinct and distinctive art.

--Leonardo Vazquez, AICP/PP

Arts Build Communities offers several courses and events to help communities make better decisions in connecting the arts with community and economic development. See upcoming classes here.

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The arts: business sector, infrastructure or social good?

In one of the most artsy towns in one of the most artsy areas of New Jersey, the South Orange Performing Arts Center is struggling to pay back a $3.9 million loan to the township. One South Orange official openly questioned whether SOPAC will ever be able to pay back its debt.  This author has heard SOPAC called a failure.

South Orange Performing Arts Center

Well, that depends on how you look at it. As a business, SOPAC is not doing well, and might not for years to come.  (The "bad economy" argument is not compelling.  While we might expect subscriptions and donations to go down, local theaters should be a more attractive alternative to those who want to enjoy performances and save money.)

On the other hand, there are plenty more stores and restaurants in South Orange Village than were there in 2005, a year before SOPAC opened.  (In other words, there were more places to shop, eat and visit in the worst years of this recession than there were in the best years before the crash.)

And SOPAC adds several benefits for South Orange and surrounding communities: A large event space, more opportunities to highlight community and student performers in a professional setting, and more choices for movies -- all within walking distance of the train.

So the question for South Orange and other communities looking to the arts for community and economic development is:  Should an arts center be considered a business sector, infrastructure or a social good?

The answer can help determine whether a municipality supports the arts, or just allows it to happen.  The answer also can help officials decide whether arts activities supported by communities should be managed by economic development, community development, or parks and recreation agencies.

If the arts are just another business sector, then a community should judge their success by their return on investment to the public.  Nonprofit institutions don't pay property taxes, but they can give a Payment In Lieu Of Taxes (PILOT).  Community leaders should negotiate for a PILOT that covers the center's share of municipal services, plus extra to make up for the fact that a tax-paying business could be on the site.  If, as in the case of South Orange, the community invests in a center, the community should demand that the center generate as much revenue as possible.  But the center should be free to charge as much as the market will bear, without any consideration for community arts or events that wouldn't bring in much revenue.

If the arts are seen as community infrastructure -- like a road or a storm drain system -- then their success should be measured in how many businesses, revenue-generating development or self-supporting residents it attracts and supports.   To make it work financially, communities could support the arts with some of the revenue that would be generated by new development.  That's what Rahway did in March, when its City Council unanimously approved an $8.5 million bond to propel its growing arts district.

It can make sense to take on this much debt for large projects that generate enough revenue to pay back their costs  That's why tax increment financing is successful around the country.  (In New Jersey, it's known as a Revenue Allocation District.)  But there are other ways to support small initiatives.  Governments could reserve a portion of the added tax revenues or fees that come about because of the arts.  Or perhaps Special Improvement Districts could dedicate a percentage to the arts from the revenues they receive from restaurants, shops and other businesses that benefit from all the people coming to enjoy the arts -- then staying to shop and eat.

Under the infrastructure scenario, cultural organizations and artists that receive support should be encouraged -- if not obligated -- to promote local businesses and projects who can bring more revenue to the municipality.

A third option is to see the arts like parks -- an overall benefit to society that are not expected to pay for themselves. School-based  and community arts programs, small community theaters and the like are probably not going to be self-supporting over the long term. (Especially not in north and central Jersey, where there are so many options for arts lovers.)

In this view, the community supports the arts through its property taxes or other fees. As with other social goods, measures of success include the number of people served and how those people feel they benefit from the arts.

The responsibility of cultural organizations and artists in this scenario would be to serve as many people as possible, and especially those who do not have as much access to art.

The three options are not mutually exclusive.  Larger cities like Newark and Jersey City might be able to do all three.  But in smaller communities like South Orange and Rahway, the choices are more difficult.

By choosing among these options, community and cultural leaders can make better choices about how public resources should be spent, and reduce the type of controversy now facing initiatives like the South Orange Performing Arts Center.

 Leonardo Vazquez, AICP/PP

For more on the SOPAC struggles, see this report in NJ.com


For more on Rahway's support for the arts, see this report in NJ.com

Photo credit: David Gard, New Jersey Local News Service.  The image was published in NJ.com on October 10, 2010.

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Opportunities for New Jersey arts in a cloudy economy

Unless you're heavily in the stock market, the economic headlines haven' shown much good news over the past few months.  But a closer look shows some positive signs that offer good opportunities for the arts.

(We'll go through the math first, then answer the "so what" questions.)

The United States lost 95,000 jobs in September 2010, according to the U.S. Department of Labor. Most of that was in government services.  The total number of jobs in the United States between September 2009 and 2010 is about the same:  (129.9 million in 2009 compared to 130.2 million in 2010*)

The leisure and hospitality industry, where the arts are counted, tell a different story.

Between September 2009 and September 2010, there has been growth in performing arts and spectator sports. The number of employees in these organizations grew 5.8%, from 401.3 thousand to 424.8 thousand.  Around the same time, the number of people working in the arts, entertainment and recreation field in New Jersey grew 5.5%, from 53.3 thousand to 58.9 thousand.  (The Jersey numbers are from August 09 to August 10. The information is from the state Department of Labor and Workforce Development).  In an earlier post, I wrote that wages among independent writers, performers and artists and in the performing arts in New Jersey were better than they were in 2006.   

The specific numbers aren't as important as the trends. But hold on to the numbers for when you're trying to persuade elected officials, business people and investors.

What does this tell us?
1. That more money is being spent for entertainment and cultural activities.  How much is being spent for each?  Hard to know, but it's not mission-critical information.  There are lot of people who enjoy sports, recreation and cultural activities.
2. Businesses and organizations in arts, entertainment and recreation may be more confident.  Usually, organizations and firms hire people when they believe they will have enough money to pay them.

More money is also being spent on hotels, restaurants and drinking establishments.  Across the country, employment in these businesses grew from 11.16 million in September 2009 to 11.24 million in September 2010, an increase of 83.3 thousand (.7%).

Why is this happening?
Since 2001, and especially in the last few years, more Americans have been taking shorter trips.  The week in Europe in some cases is being replaced by a few weekend trips, or multiple daytrips.  People making these choices are looking for new experiences. (They're creative people; they get bored doing the same thing over and over again.)  That helps explain why places like Frenchtown, New Brunswick, Millville and Asbury Park are becoming go-to places for cultural visitors.

While New Jersey doesn't have the mystical qualities or 'holy cow' natural features of New Mexico or northern Arizona, or the cool mountain chic of western North Carolina, we have more diversity than either of those places.  That means that Jersey communities can offer a lot of different experiences close by.

So what should you do with this information?

• If you're in the arts, let officials and business leaders in your community know that you're part of a growing industry.
  
• If you're an elected or appointed official who wants to support the arts, here are some good talking points for the next Chamber of Commerce meeting or sit-down with developers.
  
• If you're a developer or restaurateur, or are in the hospitality field, connect to local arts organizations, such as arts councils, or county offices of cultural and heritage affairs.  (Every county in New Jersey has one).  Most economic impact studies of the arts find that people tend to spend between between $10 and $40 per person above and beyond a ticket price.  The closer you are to the arts district or the performing arts center, the more likely you are to get the types of customers and guests who can afford to go out to cultural events.

Everybody from the state to the local level should be helping make New Jersey a better place to visit and stay in for the arts.  Discover Jersey Arts is leading this information statewide.  They -- and you -- can benefit by supporting their work, especially if you're in the arts.

--Leonardo Vazquez, AICP/PP   

Arts Build Communities helps leaders of New Jersey's communities and cultural organizations make more informed decisions to promote sustainability and prosperity through the arts.  ABC offers research, continuing education and technical assistance. Learn more...

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Employment data shows promising news about New Jersey arts in the recession

There's some interesting numbers that indicate that the creative sector might be doing better in the recession than other sectors.

Data from the New Jersey Department of Labor and Workforce Development show that total wages were higher among independent artists, writers and performers (and their employees) and workers in performing arts companies in 2009 than they were in 2006.  Total wages for workers in museums and similar institutions is nearly what it was in 2006.

If the creative sector was suffering as much as other sectors in the recession, we would expect to see total wages go down.  That's what we see in construction (20% drop), manufacturing (16% drop) and finance and insurance (8% drop).

In fact, the average number of employees in the performing arts has grown by 233, or 12%, between 2006 and 2009.  The average number of people working as or for independent artists, writers and performers went down almost 16%, from 1,490 to 1,258.

These shafts of light don't show the whole picture of the creative sector.  But because independent artists, performing arts companies and museums are key parts of the creative sector, they are important indicators for the creative economy.  (We probably won't get today's picture until 2012, when the US Census Bureau releases detailed information through the County Business Patterns database.)

The numbers indicate that there might be a growing demand for the arts and the work of artists from New Jersey.  Businesses usually pay their employees more only if they are generating more income, or if they are confident that business conditions are getting better.   The fact that there are fewer independent artists, writers and performers collectively making more money indicates that at least some of those who stayed in the business were doing better in 2009 than they were in 2006.

There needs to be more research to know why these fields are doing well -- or why there are more people working in the performing arts, but fewer working as or for independent artists, writers and performers.  For example, is the rise in total wages among independents mostly because New Jersey artists are doing better, or because more successful artists have moved into New Jersey over the past few years?

Here is what the numbers show, in 2009 dollars:
Performing arts organizations:
*Total wages in second quarter of 2006: $14.7 million
*Total wages in second quarter of 2009: $16.4 million
Change in total wages: 11.6%

Independent artists, writers and performers:
*Total wages in fourth quarter of 2006: $19.4 million
*Total wages in fourth quarter of 2009: $20.8 million
Change in total wages: 7.2%

Museums, historical sites and similar institutions:
*Total wages in fourth quarter of 2006: $13.4 million
*Total wages in fourth quarter of 2009: $13.1 million
Change in total wages: -2.2%

If you'd like to check out more numbers, please see the New Jersey Department of Labor and Workforce Development's report on New Jersey Employment and Wages Covered by Unemployment.  To compare 2006 and 2009 wages, multiply the 2006 numbers by 1.06 to make them equal to 2009 dollars.

--Leonardo  Vazquez, AICP/PP

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Arts Build Communities and Bloustein Online Continuing Education Program have teamed up to offer a set of courses on cultural planning and development.  If you want to do more than hear other people's stories and see nice pictures, take a Deep Learning course.  You can learn how to make communities stronger and more prosperous through the arts.  Classes run from September 2010 to July 2011.  Learn more...

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New Jersey's creative sector workforce grew in past decade, but did not keep pace with rest of US

Over the past decade, the number of people working in New Jersey’s creative sector grew, but didn’t keep pace with the growth in the creative sector around the country. Unlike the steady growth in New Jersey’s creative sector establishments between 1998 and 2007, the number of creative sector workers has risen or dropped in waves, from a low of less than 143,000 in 1999 to a high of more than 156,000 in 2005. Most of the growth over the past decade has been in self-employed creative sector workers.  This is according to a new report on the creative sector workforce in New Jersey by Arts Build Communities.

Key findings of the report include:

• Between 1998 and 2007, the number of  creative sector workers grew from 143,329 to 149,227, a difference of 5,898, or 4%. During that same period, the number of creative sector workers in the United States grew 10%, from 4.31 million to 4.75 million.
  
• The growth in the creative sector in New Jersey lagged behind overall employment growth in New Jersey, which grew nearly 11%, from 3.83 million to 4.25 million between 1998 and 2007.2 Creative sector workers account for less than 4% of New Jersey’s workers.
  
• Self-employed workers account for the greatest  growth in New Jersey’s creative sector. In fact, if it wasn’t for self-employed artists, writers and other creative professionals, there would have been a slight decrease in the number and percentage of creative sector workers between 1998 and 2007.
  
• On average, there were about 147,000 people per year working in New Jersey’s creative sector. Like an ocean tide, the number of creative sector workers rose and fell annually, sometimes sharply. The creative sector workforce grew by as much as 6% one year and dropped by as much as 7%. Employment was lowest in 1999, at 142,854, and peaked at 156,185 in 2005.
  
• The size of New Jersey’s creative sector workforce fluctuated more sharply than the US creative sector workforce. For example, in 2000, the US creative sector workforce grew by 3%. In New Jersey, there was a 6% growth. In 2002, the US creative sector workforce dropped by 4%. In New Jersey, there was a 7% drop.
  
• The counties with the highest number of employees  per year are Bergen, Essex, Hudson, Middlesex and Morris. The counties with the lowest number of workers per year are Salem, Cumberland, Cape May, Warren and Sussex.
  
• The counties with the largest increase in workers  per year are Middlesex, Essex, Monmouth, Somerset and Gloucester.
  
• Although about half of New Jersey’s creative sector workforce was in the counties closest to New York, the fastest rate of growth was in the western and southern counties. The counties with the highest average rate of growth are Salem, Gloucester and Sussex. At the opposite end of the scale are Morris and Union counties, which had the highest average rate of decline in creative sector workers.
  
• The counties with largest decrease in employees per year are Morris, Union, Atlantic, Burlington and Hudson.
  
• The 31% growth in creative sector businesses (including self-employed businesses) between 1998 and 2007 has far outpaced the 4% growth in workers. This means that the creative sector landscape is getting more crowded with competing micro-entrepreneurs and tiny organizations.

To learn more and find out about the implications of this research for elected officials, public administrators, urban planners, economic development professionals and cultural professionals, read the full report.

--Leonardo Vazquez, AICP/PP

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No New Jersey towns among America's top arts destinations -- Again

AmericanStyle magazine recently listed the top 75 arts destinations in the United States.  No New Jersey town made the list this year (or in any of the past few years).  This isn't just frustrating; it also makes it harder for communities throughout the state to promote their arts and culture.

With more than 125,000 readers, AmericanStyle is perhaps the most important publication focused on cultural tourism in the United States.  The average subscriber lives in a house worth at least $600,000 and 85% spend $1,000 or more on art on their trips.  About 81% visit galleries at least five times per year.  (This is according to the magazine's media kit for advertisers.)  In general, cultural visitors (those who travel to enjoy arts, culture or heritage) tend to be wealthier, better educated and travel more than traditional tourists.  They not only spend more, they often are in good positions to influence the travel decisions of other visitors.

The top arts destinations are selected by reader poll.  There are three categories:  Large cities (at least 500,000 people), Mid-sized cities (between 100,000 and 500,000 people) and small cities (less than 100,000 people)  The 25 most popular destinations in each category are recognized in the magazine.

New Jersey has no communities that fit into the large cities category.  Woodbridge, Jersey City and Newark would be in the mid-sized cities category, and every other community in the small cities category.

Some of the top winners among small cities are well-known arts destinations or old artist colonies, such as Santa Fe, New Mexico, or Sarasota, Florida.  But many are places that most of us might not think of as national arts destinations -- Saugatuck, Michigan; Bradenton, Florida; Eureka Springs, Arkansas; or Cumberland, and Frederick, Md.

And while some places on the list have more people than many New Jersey towns,  the presence of Saugatuck (population 3,600); Taos, New Mexico (population 4,700) and Eureka Springs (population 2,300) shows that when it comes to being an arts destination, size does not matter.

You could dismiss the list by saying that it's just a popularity contest, and that a well-orchestrated campaign (such as by the Bradenton Times) gives a place more 'art cred' than it deserves.  But consider this: New Jersey and New York are among the states with the highest numbers of subscribers to AmericanStyle.  More than 27% of readers are within a half-day's drive, or a two-hour flight from New Jersey.  That could mean that the people who should know New Jersey's arts communities best either don't or don't think about places like Millville or Montclair the same way they do Asheville, North Carolina or Sarasota.

And anyway, building popularity is how an interesting place becomes a tourist destination.  Few people, if anyone, decide where to visit based on the kind of information found in a fact sheet. Usually, visitors get introduced to a place by friends or a magazine like AmericanStyle, then use the facts to justify their trips.

There are several New Jersey communities that, with some marketing support and an organizing effort, could make the small cities list.  These include Montclair and Morristown in North Jersey, Red Bank in Central Jersey, and Millville in South Jersey.  If cultural and civic leaders around the state could collaborate to promote a network of arts destinations in New Jersey, they could see more visitors and shoppers in their own communities.

--Leonardo Vazquez, AICP/PP

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3 keys to sustainable arts-based community and economic development. Part 2: Collaboration

What makes a community an arts-friendly place and a likely arts destination?

A big arts venue helps, but not as much as you might think.  A recent study of three huge arts centers in California showed that two of them failed to have any meaningful impact on the arts outside their own doors.   The third -- the Yerba Buena center in San Francisco -- succeeded because of the collaborations between supporters of the center and local artists.

In our research exploring what works for creative sector development, we hear the same theme in every anecdote: Collaboration between the creative sector and other elements of a community.

Collaborations between arts institutions and small retailers and restaurateurs seems obvious (they all benefit from having more people in town rather than shopping in malls or online.)  But other communities, such as Millville and Belmar, have also built collaborations with schools and civic organizations.  In 2008, Art Calendar named Millville one of the top ten communities for working artists.  The article cites Millville's "affordable, mixed-use properties featuring period architecture, monthly art walks, a large public art center with gallery and studio spaces, and lots of cultural activities."  But there are several towns in New Jersey that have these elements. Marianne Lods, who directs Millville's downtown revitalization efforts told NJ ArtiFacts that before there was the public art center, "we involved families, youths and community in our development" through arts education programs. Those programs expanded through the town.

Seems like an easy solution.  If it was, we would see so much more of it.  In public affairs and business, it seems everyone talks about collaboration, alliances and partnerships.  The problem is that collaboration requires commitment and patience, and comes with costs and risks.  Here are some tips for cultural professionals for successful collaboration:

*"Don't go to someone with a mouthful of 'gimme' and a handful of nothing."  This is one of the best quotes we ever heard about sharing.  In places without a strong arts presence, the arts can't just be special -- they have to be valuable.  Try to imagine the world from your audience's eyes.  If they haven't shown interest in the arts before, why should they start now?

*Anticipate and understand resistance.  If the arts are obviously so good for a community, why isn't there already an active arts presence there?  Maybe it's because no one thought of it before -- but that's probably not the reason.  There might be beliefs about the arts and artists that are not talked about that affect the actions of leaders. You need to understand those beliefs in order to build working partnerships.

*Build a vision for collaboration together.  People tend to nurture what they create themselves.  So if you want others in a community to nurture the arts, they should be able to see something of themselves there.

*Be patient, be compassionate and celebrate your successes.  How many people get married after a first date?  (How many of those marriage do you think would last.)  A true collaboration is a transformational process in which all the parties involved are open to one another's perspectives and come to shared beliefs about issues and problems.

And yet there will also be tension and misunderstanding.  Somebody is going to say or do something dumb.  Others will create their own narratives of what happened and why, and that will make things worse. Effective collaborations are led by several people (not just one), who can manage tensions and repair fraying connections (or build new ones.)

When good things happen, let everyone know about it.  Everybody likes to be part of a winning team.   That's a good segue to the next part of this series, which focuses on regional marketing.

--Leonardo Vazquez, AICP/PP

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A positive economic sign for New Jersey's creative sector

Our colleagues at the Rutgers Economic Advisory Service (R/ECON) predict a slow growth for New Jersey's economy.  There are signs that indicate that the creative sector in the state could continue growing faster.

According to the New Jersey State Department of Labor, in 2009, the arts, entertainment and recreation industry was one of the fastest growing industries in the state.  The number of employees grew 8% between January and December, outpacing all but the natural resources and mining industry.  (That grew fast because that industry is so small.)  Seasonally adjusted numbers show that the number of people in the arts, entertainment and recreation industries added 4,000 jobs, from 52,400 to 56,400.

And the trend is continuing.  Between January and March 2010, the number of jobs in the arts, entertainment and recreation industry grew 3%. 

The report doesn't say how many of these jobs are in the arts as opposed to in casinos or sports stadiums.  But knowing that Atlantic City had a rough year in 2009, and that there has been growth in the creative sector in the past decade, it is likely that some, if not a lot, of the growth is due to the arts.

We'll know exactly how much in 2011, when we can get more detailed employee information from the U.S. Department of Commerce's County Business Patterns database.
 
So what does all this data mean for cultural professionals and the creative economy in New Jersey?

*Even in a down economy, people support the arts.  Maybe they don't spend as much, but they continue to support the arts.
*The experience economy is growing faster than the manufacturing, information, or other economies that New Jersey has depended on.  The arts are a critical component of the experience economy. 
*Though arts organizations have to watch the stock market to guess how much support they will get from foundations, the arts in New Jersey do not have to depend on the fortunes of Wall Street bankers or wealthy people in other industries that have been hard-hit in the recession.
*In a down economy, people tend to travel shorter distances.  It could be that some weekend visits to Asheville and Santa Fe are being replaced with day trips to Red Bank, Millville and Montclair.  New Jersey attracts visitors from throughout the Northeast Corridor area, and was seeing an upswing in visitors before the Great Recession.  For more on tourism in New Jersey, see the work of the New Jersey Center for Hospitality and Tourism Research at Stockton College.  


For more information on trends in New Jersey's creative sector over the past decade, please see the New Jersey Creative Vitality Index.


Special note: Because of the different ways the creative economy is measured, Arts Build Communities, Americans for the Arts, and state and federal sources generate different numbers.  However, all of the sources tell roughly the same story -- the arts are a significant part of New Jersey's overall economy, and the creative sector is growing.

--Leonardo Vazquez, AICP/PP

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Study of arts establishments shows significant growth in creative sector in New Jersey

Some good news for those who believe the creative economy is important to New Jersey's overall economic health. A recent study by Arts Build Communities showed that the creative economy substantially grew in the past decade. Looking at a key measure -- the number of businesses, organizations, and self-employed creative sector professionals -- between 1998 and 2007, ABC found that creative sector grew by more than a third. The report, recently published in the New Jersey Creative Vitality Index also found that the creative sector is growing throughout the state, and that population growth and economic cycles seem to have little effect on the growth of the creative economy.

Key findings:

• The creative sector in New Jersey grew 34% between 1998 and 2007, as measured by the number of creative sector establishments.  The number of establishments in New Jersey’s creative sector grew from 35,600 to 40,800.
• The New York suburbs had the largest concentrations of artists and arts organizations throughout the last decade. The counties with the highest number of creative sector establishments in 2007 were Bergen, Essex, Hudson, Monmouth and Middlesex.
• While the arts flourished in the New York suburbs, it has been growing west and south.  Between 1998 and 2007, the counties with the biggest growth in the number of creative sector establishments were Essex, Hudson, Bergen, Monmouth and Morris.
• The creative sector was small in the western and southern counties along the Delaware River, but growing relatively quickly.  The counties with the highest percentage growth between 1998 and 2007 were Salem, Sussex, Hudson, Gloucester and Hunterdon.
• The growth in the creative sector was largely due to self-employed cultural professionals.  The number of arts businesses and organizations statewide grew less than 6% between 1998 and 2007.   The number of organizations actually fell in Cumberland, Passaic, Somerset, Union and Camden counties.
• The arts became a bigger part of New Jersey’s economy between 1998 and 2007.  The 34% growth in creative sector establishments outpaced the overall growth of establishments, which was less than 20%.
• It is not clear why the creative sector in New Jersey grew so much, but it appears the growth is not tied to population.  The growth in the creative sector far outpaced population growth in New Jersey (34% compared to less than 8%). 
• The regional and national economy seems to have some, but not much effect, on the growth of the creative sector.  Statewide, the number of creative sector establishments grew between 2% and 6%, except in 2001, when the number dropped by 2%.  There was less growth in 2007, the last year before the Great Recession, than in 2003 and 2005.

See the full report

Arts Build Communities helps civic and cultural leaders make better choices connecting the arts with community and economic development. ABC conducts research, provides technical assistance and offers continuing education to help leaders throughout the state.

Arts Build Communities is produced by the Professional Development Institute of Rutgers University's Edward J. Bloustein School of Planning and Public Policy.

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NEA grant opportunity for municipalities: $25,000 to $250,000

If your municipality has participated in the National Endowment for the Arts' The Mayors' Institute on City Design, it is eligible for a grant of up to $250,000.

Grants can be used for planning, design or arts engagement. The deadline to be considered for the award is March 15, 2010

The program is open to municipalities across the country. The list of eligible communities in New Jersey include:
Asbury Park, Atlantic City, Bordentown, Burlington, Camden, East Orange, Edison, Elizabeth, Hackensack, Hamilton Township, Highland Park, Hightstown, Hoboken, Hope, Irvington, Lambertville, Manahawkin, Newark, Old Bridge, Orange, Paterson, Perth Amboy, Plainfield, Pleasantville, Port Norris, Princeton, Princeton Junction, Red Bank, South Amboy, South Bound Brook, Stewartsville, Trenton and Vineland.


(If you think your municipality is eligible, please check with the National Endowment for the Arts. Please report any additions or corrections to us.) 

To learn more, please visit the grant announcement page: http://www.nea.gov/grants/apply/MICD25/index.html

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3 keys to sustainable arts-based community and economic development. Part 1: Branding

Good news for artists and other cultural professionals:  More Union County towns want you.  In the past decade, North Jersey communities as diverse as Cranford, Linden, Rahway and Woodbridge have developed plans to build the creative sector.

But what’s good for artists and cultural organizations may be challenging for the communities.   When too many places too close together try to attract the same kind of enterprises, a few are going to succeed and some are going to spend too much for too few results.   New Jersey communities have a history of competing against each other for the same businesses, so we shouldn’t be surprised if Union County towns do the same with the arts.

How then can communities that are within 10 to 20 minutes drive of one another maximize their return on investment?   Through branding, collaboration and regional marketing.

In the first part of this three-part series, we will look at the importance of branding for communities.

Branding

Branding is the art of convincing customers that you bring a value to them that is different from others they consider to be similar.  It is what allows different colas, hardware stores, and other products and businesses to stand in some cases side-to-side and still be profitable.  Neither The Coca-Cola Company nor Pepsi Co simply promote the taste of their best-known soft drinks.  Coca-Cola promotes the idea that its namesake product is connected with fun, refreshment and tradition (such as in their Christmas advertisements.)  Pepsi is branded to be connected with youth and energy.

Luckily for Union County (and New Jersey) municipalities ,  “the arts” is such a large and diverse concept that there might be no end to brand niches.  Some municipalities could be craft centers, while others can be destinations for performing arts.  Some could orient themselves to young hipsters, while others could attract mature learners.  Each town would do best to build on its existing assets and conditions.

There are many ways to create a distinct niche.  Consider the hundreds of possible niches by focusing on a type of arts, customer and place experience (ethnic urban or leafy suburban).

Diverse cities like Elizabeth and Linden are in a better position to attract arts activities that are more “ethnic” or “urban,” while the tony suburbs of Summit and Westfield can more easily focus on the kind of art that is sold to wealthy collectors and expensive museums.   In this scenario, Summit and Westfield would find it more challenging to replicate Elizabeth and Linden, and vice-versa.

Of course, a municipality can’t tell artists what to do or where to locate.  (Don’t even try.)  But when a municipality brands its arts niche, it will attract more artists, organizations and visitors.  They in turn will attract other types of businesses, such as restaurants and small stores.   If zoning and housing supply allow, more artists and some visitors will want to live in or near the arts district, making a community more likely to attract community-oriented businesses, such as groceries, bakeries, and services.

One of the best idea books for branding places is Rhonda Phillips’ Concept Marketing for Communities.  In this short book, Dr. Phillips gives examples of the many ways communities can create more distinctive images.  (Full disclosure: Rhonda Phillips teaches in the Bloustein Online Continuing Education Program.)

For more information:

The Leading Institute provides training and learning in strategic communications, a cornerstone skill in marketing.  For more information, please visit The Leading Institute website

The Bloustein Online Continuing Education Program offers a number of Deep Learning courses and Learning Labs on communications, branding, and business development. These include:

*Who do They Think You Are: Branding for Planning, Design and Development Firms (Learning Lab)

*Concept Marketing for Communities (Learning Lab)

*Business Development for Planners (BOCEP Deep Learning)

For more information, please visit  Bloustein Online Continuing Education Program

--Leonardo Vazquez, AICP/PP

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