It’s reported that the CNMI population has dropped from 65,927 people in 2006 to an estimated 46,000. Most of those are probably associated with the demise of the garment industry, but there are also many U.S. citizens who are seeking browner pastures elsewhere – you can’t get much greener than Saipan with all the rain we’ve been having.
The biggest factor why individuals leave is to improve their economic standing. It’s no surprise that the CNMI revenue has been in freefall for the last few years. We’re seeing the impact with ongoing salary cuts, and budget cuts. The retirement fund was hosed for several years by the government and now it’s predicted to last only another three years. So it won’t be surprising when the estimated revenue for the next fiscal year is announced that more individuals will be packing for the mainland.
Oh, I forgot, we’ve been told that casinos will be our saving grace. “If you build it, they will come” is the popular line from The Field of Dreams movie. Well, if our field of dreams are tied up in casinos, we’ll probably strike out because the mecca of gambling in the U.S. has been hard-hit lately. In fact, Las Vegas has been named as the nation’s foreclosure capital with one in every 99 homes receiving a foreclosure notice in July, according to residential data tracking firm RealtyTrac. One in every seven Nevada homes is currently vacant and nearly two-thirds of existing Vegas homes sold for a loss to owners between April and June. In addition, they’re suffering from a 13.8 percent unemployment rate, as of June this year, and the jobless number is likely to worsen.
What happens in Vegas isn’t staying in Vegas as other cities and states are feeling the pinch. That won’t stop many from trying their luck elsewhere as budgets are cut further, salaries are squeezed more, and businesses are forced to shut their doors. With the federal debt becoming a major issue and ARRA funds drying up next month, we’re not going to see more federal dollars flowing into the Commonwealth. “We accept food stamp” banners will become even more prevalent as more and more people are in need of a limited amount of federal assistance.
This is a depressing scenario, but one that has been foretold numerous times by myself and other columnists. The sky has fallen and most of us are lost in the fog. What can we do? Even though too little has been done too late, there’s never a better time than now to take action.
For business owners, you need to go where there is a market for your products. Examine the potential customers that still exist on Saipan, and determine if it is enough to sustain your business. There are numerous other ways to get your products to those who need and can afford them. The Internet has allowed many companies to sell globally. Going global expands your offering to a larger target market. This can be done through exporting to foreign countries, foreign licensing, and joint ventures. It also involves developing a global strategy. If you have a product that is unique, you may be able to form a strategic alliance with a well-established distributor in another country.
Location is an important factor to consider when deciding where to locate your business. When I lived in Logan, Utah, one of my clients was a videographer, specializing in wedding videos. His top end video cost about $600 and he was only making enough to pay for his expenses. After a few months of working with him, he doubled his sales, but I told him that if he wanted to make more money he was going to have to move to a larger city. I was thinking of Salt Lake City, but he was even thinking bigger and moved to a retirement community in southern Florida. There he was able to sell similar videos he made in Logan, but he charged $3,000 or more for them. That’s five times the amount for the same product. Not only was he able to earn more per client, but there were more clients willing to pay his fees.
Before you decide to move, realize that Saipan still has untapped potential. There are opportunities in every challenge. It takes some innovative thinkers to help uncover them, and leaders to make those ideas become a reality. The grass may be greener on the other side of the world, but you need to do your homework before you move so you won’t be moving to browner pastures.
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