Page 18 - Delaware Lawyer - Spring 2019

FEATURE
J. Michael “Mike” Bowman
Delaware’s
Numerous projects, initiatives are building a strong future for the First State.
Delaware’s economy is in a good place in 2019. Unemployment is at 3.7 percent, according to the Department of Labor, the lowest in 11 years, accompanied by low inflation and modest economic growth. Most people in Delaware are happy with a stable economy that is not too big nor too small, but “just right.” There are several layers to Delaware’s economy, all with substantial changes underway that bode well for the continuation and expansion of Delaware’s Goldilocks economy.
16 DELAWARE LAWYER SPRING 2019
Layered Economy
First, the long reliance on the cor- porate base as the economic driver has withered over the last 20 years, but now appears to be undergoing a revival with different players of varying size and some reconfiguration of others, such as DuPont and Chemours. Agility is an important feature of survival that this layer tradition- ally lacked, but is now developing.
The second layer of the economy, con- sisting of entrepreneurs, has been quietly, though steadily emerging as an important contributor, particularly in the technology sectors and startups. The Milken Insti- tute’s State Science and Technology Index ranked Delaware No. 5 in strength of tech and science workforce. Delaware is espe- cially strong in the sectors of life sciences, including agriculture, as well as finan-
cial services and materials. The state gov- ernment has become more supportive of early-stage companies with valuable incen- tives such as R&D and investor tax credits.
The third layer of the economy is the myriad service providers, who are highly dependent on the other two layers. This layer is often referred to as Main Street businesses of retail, restaurants, hotels and specialty expert needs such as legal, accounting and consultants. The newest workforce direction is called contingent labor — the gig economy, freelancers or sole proprietors. Nearly one third of labor today is contracted to workers comfort- able with multiple employers and desiring independent flexibility.
Other large employment sectors such as education, healthcare and government are vital to delivery of social services and
Goldilocks Economy