While state economic development efforts are moving in the right direction, many Wyoming communities still lack the wherewithal to compete successfully for new businesses.

So says Tucker Fagan, chief executive officer of the Wyoming Business Council, who offered this assessment to the Casper Rotary Club in Casper on Monday.

Fagan said his budget allocations reflect the realities on the ground. Fifty-four percent of his budget is devoted to community development, 44 percent is used to help existing businesses and only 2 percent is currently invested in recruiting. Quite simply, Fagan said, recruiting can't be done until the infrastructure and skilled work force are available to accommodate new businesses.

Fagan pointed to the "Business Ready Communities" law passed by the Wyoming Legislature as an important step in addressing infrastructure needs, which might include such things as sewer, water, airport and industrial park improvements.

The Business Ready Communities program was first proposed by Gov. Dave Freudenthal. In 2003, the Legislature appropriated $26 million over three years for the effort. Grants are limited to $1.5 million or less and are submitted to the Wyoming Business Council, which forwards its recommendations to the State Loan and Investment Board for approval. Some local matching funds also are required.

"The Business Ready Communities is not money going to business," Fagan said. "It's money going to publicly owned infrastructure."

Initiatives with the University of Wyoming also help small businesses identify markets and sources of raw materials, as well as providing marketing assistance. "Most small businesses don't really understand marketing - where to market and how to market," he said.

Fagan said economic development must be a cooperative effort involving the higher education system, Wyoming's cities and towns, the business community and various state agencies.

When a recruitment prospect is identified, Fagan said the needs of the business can be described to Wyoming communities through a confidential Web site. Profiles of cities and towns that can satisfy the needs then can be forwarded for evaluation to the business in question.

Selling personal contact also is important. "That's how we do things in Wyoming," he said, and it's helpful for a potential business to know if problems arise in such areas as permitting, its concerns will not be neglected.

At the moment, Fagan said the Business Council is working to recruit several California companies. "We're in there fighting," he said.

But one problem is having enough workers in the state. With low unemployment and high labor force participation rates, some areas are experiencing shortages of workers.

The secret to attracting and retaining a skilled work force is simple, Fagan said: "It's wages, that's why the kids are leaving."

In order to be competitive, he added, Wyoming needs to find ways to offer better pay.

Business editor Tom Mast can be reached at tom.mast@casperstartribune.net, or 1-307-265-6850.