Yuba-Sutter shows surprising economic growth

Yuba-Sutter posted the third-highest economic growth among California's 26 metropolitan statistical areas during the recession, the latest federal figures report.

The Yuba City MSA was one of only five regions in the state to see gains in gross metropolitan product from 2007-10, according to the U.S. Bureau of Economic Analysis. The growth rate for the area, which represents Yuba and Sutter counties, climbed .72 percent as its gross product rose from $4.1 billion in 2007 to $4.2 billion in 2010.

Nationally, the region ranked No. 106 in growth among 366 metro areas.

Brynda Stranix, CEO of the Yuba-Sutter Economic Development Corp., was pleased to see the trend corresponded with the EDC's own recently completed census, which reported remarkable growth in the last decade.

It's exciting to see a report where Yuba City stands out for something other than high unemployment, she said.

"It gives us something else to point to where we are growing. We are not stagnant and we are not moving behind," she said. "(To be) 106th is in the top 28 percent in the nation. Even though we have very high unemployment, we are doing something right in Yuba-Sutter."

Also noteworthy, Stranix said, $4.6 billion in gross product is substantial for a relatively small MSA, about 170,000 people. Of that, half a billion dollars comes from agriculture and another half comes from retail. A billion dollars comes from government. The El Centro area, with a 2.66 percent growth rate, and the San Jose-Sunnyvale-Santa Clara region with a 4.09 growth rate ranked second and first, respectively. Bakersfield-Delano and Chico were the only other areas to post gains in the three year period.

Yuba-Sutter officials were excited by ranking.

"It shows our economy is growing, which is really key," said Darin Gale, Yuba City's economic development manager. "Even though it wasn't a huge amount, the majority of the state was declining."

Regions declining in economic growth outnumber those that gained during the three-year period, which coincides with the recession that began in December 2007. A total of 207 metro areas sustained losses in gross product while 159 posted gains.

The Redding MSA placed last, with a growth rate of -3.81 percent. Sacramento-Arden-Arcade-Roseville ranked No. 20, at a -2.49 percent decline.

Most county, city and economic development officials agreed: Yuba-Sutter's agricultural sector is to thank for the area's success.

"We haven't had a high amount of retail growth in that three-year period, we haven't had a high amount of real estate growth," Stranix said. "But we have agriculture. That is what our community was built on and it continues to hold our heads above water."

As Gale highlighted the addition of Bianchi Ag Services to sell agricultural equipment, Yuba County Supervisor John Nicoletti pointed to Naumes, which lost a major component in its fruit packing operation in a fire last year but quickly rebuilt its facilities and also expanded its Yuba County operations.

In addition, Nicoletti said, the region is regaining its strength in the logging sector when years ago there was talks of shutting down. And when businesses consolidate, many are choosing Yuba City to be the hub of their operations.

"Our exports with agriculture have increased several times over," he said. "We are in several different countries in the world now where we weren't a few years ago. Our core base economy has seen solid growth."

Sutter County Supervisor Stan Cleveland said the county crop reports show the region continues to be a leader in rice, walnuts and other commodities. The county's general plan update aims to allow more agricultural industry but the impacts won't be realized for a few years.

Cleveland also attributes domestic product growth to the stability of the local government.

"We know we didn't overdo it when the times were good," he said.

Nicoletti also said the presence of Beale Air Force Base contributes to the region's growth, with six out of 10 Beale members living in Yuba-Sutter and patronizing local businesses and services.

"It's quality of life. People like living here, they like working here," he said. "We feel comfortable being at the top of the list because for us, we always have been."

The report proves why the Yuba-Sutter region is a great place for businesses to move but there is always work to be done, Stranix and others agreed. The region needs to fix its unemployment, boost its educational attainment by bringing in a four-year university and curb its crime rates.