Where We Work in the Miami Valley

Further demographic and economic analysis of local communities in the jobs we have

Yesterday’s analysis was well read and provided many questions from our readers. Many of our readers wondered aloud whether some of the economic fortunes of our local communities are based on the industries that exist in these communities. Are the seven communities more alike or more different when it comes to employment sectors? It all leads to a further analysis of the 2023 American Community Survey data.

The seven communities this publication has been analyzing—Troy, Piqua, Sidney, Vandalia, Huber Heights, Miamisburg, and Tipp City—each exhibit unique economic profiles influenced by their employment sectors, demographics, and income dynamics. While each community faces distinct challenges and opportunities, they collectively offer insights into the regional economic landscape, particularly the strengths and vulnerabilities tied to employment concentration, workforce participation, and sectoral diversification. A deeper look into the data highlights the potential for economic growth while also underscoring the importance of strategic planning to ensure long-term resilience and prosperity.

Manufacturing remains the dominant employment sector for several communities, particularly Sidney (43%) and Piqua (33.8%), where nearly half the workforce depends on it. Troy (26.3%) also retains a significant manufacturing base, though to a lesser extent, suggesting a more diversified economy. Manufacturing has historically provided stable, middle-income jobs, and its prominence underscores the region’s industrial heritage. However, overreliance on this sector exposes these communities to cyclical downturns, technological disruptions, and global trade volatility. Communities like Vandalia (13.6%) and Miamisburg (12.6%) illustrate the benefits of diversification, as their economies rely less on manufacturing and more on healthcare, professional services, and construction, which provide insulation from sector-specific risks.

Educational services, healthcare, and social assistance are growing economic pillars across all communities, with employment ranging from 15.7% in Piqua to 24.3% in Miamisburg. This sector’s steady growth reflects national trends fueled by aging populations and increasing demand for social services. Communities like Huber Heights and Miamisburg, where this sector is particularly strong, demonstrate how prioritizing healthcare and education can support economic stability. These jobs also tend to provide better wages and benefits than many other service-oriented roles, contributing to stronger median incomes in these areas.

Retail trade and transportation-related employment also play a significant role, especially in Vandalia, where transportation and warehousing account for 7.5% of jobs (which makes sense when Vandalia is home to the Dayton International Airport and the Interstate 70/75 Interchange). Retail, while a consistent employer, offers limited wage growth and stability, highlighting the importance of pairing it with sectors that offer higher economic mobility. Vandalia’s focus on transportation aligns with its strategic location, offering potential for further development as a logistics hub.

The entertainment and hospitality sector stands out as a potential growth engine, but its strategic role varies widely among the communities. Troy (10.4%) and Vandalia (11%) show a higher reliance on this sector, which reflects efforts to enhance their local appeal as destinations for leisure, dining, and recreation. This sector’s accessibility—offering entry-level opportunities and part-time positions—makes it a valuable source of jobs, especially for younger workers. However, entertainment and hospitality are characterized by lower wages and economic vulnerability during downturns. For this reason, it is crucial for communities to integrate leisure-based industries into broader, diversified economic strategies rather than relying on them as standalone growth drivers.

Troy, in particular, serves as an important case study for understanding the strengths and risks of emphasizing entertainment and hospitality. Its decision to grow employment in this sector likely stems from its efforts to attract regional visitors, and boost local spending. A vibrant dining and recreational scene can enhance the town’s image and contribute to secondary economic benefits, such as increased retail sales and residential appeal. However, this sector’s heavy reliance on discretionary spending and low wages presents challenges for long-term economic stability. Troy’s median income of $40,748 and poverty rate of 11.3% suggest that this focus, while beneficial in the short term, may not address structural income disparities or provide upward mobility for its workforce. A more balanced approach, combining leisure-based growth with investments in higher-paying industries like healthcare and advanced manufacturing, will yield better long-term results.

Perhaps most importantly, the demographic composition of these communities also shapes their economic potential. Troy’s relatively young population, with 25.6% of residents under 18 and a median age of 37.6, positions it well for long-term workforce sustainability. In contrast, Sidney (18.2%) and Tipp City (18.3%) have older populations, which may strain healthcare services and reduce labor force participation unless younger workers are retained or attracted. Vandalia, with the highest labor force participation rate (70.6%), reflects the economic benefits of a highly engaged workforce and a balanced employment base. Communities with younger populations, like Huber Heights, have the opportunity to cultivate a strong labor pipeline by investing in education, affordable housing, and amenities that attract and retain young families.

Median income and poverty rates further illuminate the economic disparities between these communities. Tipp City, with the highest median income ($44,074) and lowest poverty rate (5.3%), exemplifies the benefits of economic diversification and strategic investment in professional and financial services. Conversely, Piqua ($33,363 median income and 15.5% poverty rate) and Sidney ($35,390 median income and 13.4% poverty rate) illustrate the challenges of economic dependence on manufacturing and the need for workforce upskilling and industrial diversification. Communities like Miamisburg and Vandalia, with median incomes around $42,000 and poverty rates under 10%, demonstrate that balanced economies with strong healthcare, construction, and entertainment sectors can drive both income stability and quality of life.

From a regional perspective, the entertainment and hospitality sector represents both an opportunity and a challenge. Communities like Vandalia, Troy, and Miamisburg have the potential to become regional leisure hubs, leveraging their existing amenities and infrastructure. Investment in event spaces, cultural attractions, and recreational facilities can amplify these efforts, drawing visitors from surrounding areas and boosting tourism revenue. However, the sector’s limitations—low wages, job precarity, and sensitivity to economic downturns—underscore the importance of positioning it as one component of a broader economic strategy. For communities like Troy, Sidney and Piqua, which already face income challenges, overinvestment in this sector could exacerbate existing inequalities.

The potential lessons from the data demonstrate that Vandalia and Miamisburg offer valuable insights for all communities in the region. Both demonstrate the value of balanced economic growth that includes strong contributions from healthcare, professional services, and construction alongside leisure-based industries. This diversification not only mitigates risks from sector-specific downturns but also provides a pathway for higher wages and greater economic mobility for residents.

For all communities, workforce development remains a critical priority. Providing training programs in growing industries like healthcare, technology, and advanced manufacturing can help workers transition into higher-paying roles. Partnerships with local schools, colleges, and employers can align training initiatives with emerging job opportunities, ensuring that residents are prepared to meet future workforce demands. Additionally, investments in transportation infrastructure and affordable housing can support labor mobility and attract new residents, further enhancing regional economic potential.

The seven communities analyzed represent a microcosm of broader economic trends, offering valuable insights into the interplay between sectoral employment, demographic dynamics, and income disparities. While each community has unique challenges and opportunities, their collective economic potential lies in diversification, workforce development, and strategic investment. Entertainment and hospitality can serve as an important growth engine, but only when integrated into a balanced economic framework that prioritizes resilience and long-term prosperity. By adopting a collaborative and forward-thinking approach, these communities can create a region that is both economically vibrant and socially equitable.

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