Letter to the editor: Don’t sell Rockland short

Thu, 05/17/2018 - 11:00pm

 Rockland has come a long way.  As recently as 18 years ago, it boasted plywood display windows and, according to the U.S. Bureau of Labor statistics, average per capita income of only $16,649 compared with the average in Maine of $26,699. We were desperate and it was all hands on deck.  Whatever income or jobs we could generate from whatever source was welcome. 

By 2016, things had changed dramatically.  The average per capita income had grown to $27,503, compared to the average in Maine of $29,604.   The unemployment rate had plunged to 3.7%, considered by economists to be almost a percentage point below that which they consider to be “full employment,” or the level at which everyone who is seeking a job has one.  The basic economic principle of supply and demand suggests that this achievement should be driving wages up even further.  We should be adding jobs that mirror our achievements and promoting employment that exceeds our current levels. 

But this is not happening.  One reason is that some people in our community who attest to be promoting Rockland’s growth still retain the outdated perceptual legacy of several decades ago.  They are stuck with the old desperation mentality and seem to believe that any new job is welcome.  In any case, cruise ship passengers do not “enhance and protect the unique sense of place and economic vitality of downtown Rockland, Maine.” Promoting gigantic cruise ships is  short-sighted and doesn’t do justice to our opportunities.  We should be promoting those jobs that exceed current levels and increase the standard of living for everyone in Rockland. 

The cruise line industry does everything possible to keep passenger spending on board so that when passengers come ashore, they spend very little. What they do purchase tends to be on items with low margins such as T-shirts and trinkets. Consider for a moment that our downtown is similar to an outdoor mall. Categories of malls range from “A” to “D.” The “A” malls feature high end anchors surrounded by similar small stores.  “C” malls are anchored by discount stores and are surrounded by budget outlets.  Most mall owners and developments strive to climb the ladder to “A” status.  Indeed, these high end “A” malls have 2-3 times the sales per square foot as the “E” malls.  Rents are higher, sales are higher, turnover is lower and they generate more then twice the amount of traffic.  Profits are, as a percentage, around 5% compared to 2% for the “C” malls.  Wages are higher with less employee turnover and are less seasonal.  Don’t we want the best for Main Street and everyone in Rockland?

We have evolved from the “C” town of yesteryear to the “A” town of today featuring best-in-class museums, destination restaurants, and wonderful schooners surrounded by well-paying galleries and boutiques. We should not be promoting the advent of those huge cruise ships that are gathering at our gates.  The meager spending by its passengers only promote jobs that are seasonal and pay only marginally above the minimum wage. 

We hear stories about towns where cruise ship tourism has been an economic boon.  But those tend to be cities with less diversified economies.  Rockland, in contrast, has a booming economy and one of the highest concentration of manufacturing jobs per capita in the state. Total sales in retailing, manufacturing, accommodations and food service, and wholesale in Rockland is, according the U.S. Census Bureau, $621 million.  The gross revenue from a single ship is less than .03% of the total Rockland income.  That is 1/25 of 1 percent!  There are 1,127 firms in Rockland.  Assuming that 30 firms might benefit from the cruise ships, that is less than 2 percent of all firms.  

Let’s not throw the baby out with the bathwater!  We can afford to improve Rockland and not drag it down into the quagmire of its economic past.

David Wylie lives in Rockland