Oklahoma Leaders Looking to Diversify State's Economy

By Dave Jordan, NEWS 9

OKLAHOMA CITY -- With businesses now tightening their belts, even laying off workers, many are wondering if Oklahoma should be more diverse and not rely so heavily on the energy sector.

Oklahoma has already diversified its economy by branching out into the aviation and biotech sectors, and there's a push to continue that trend, now more than ever.

Oklahoma's economy has not collapsed under the recession, but it appears to be buckling. Oklahoma City has had a hiring freeze for the past 7 months because of a budget shortfall caused in large part by less than stellar oil and gas revenues.

Oklahoma City Mayor Mick Cornett said it could have been a lot worse if city and state officials didn't invest in other areas, like biotechnology.

"That's one of the reasons we've been able to avoid the calamity that's going on in other places," Cornett said. "If you look at the bio-medical sector, there are some pretty good jobs that are still hanging in there."

State Chamber Vice President Jim Mason confirmed that. Research Park is now home to more than 30 medical and biotech firms and there are no signs that area is slowing down.

"Biotech has been a major field for Oklahoma. We've seen a significant increase in the number of companies," said Vice President of State Chamber of Oklahoma Jim Mason

But now there's a shift in strategy. Instead of luring companies to Oklahoma, the State Chamber is working to help existing companies grow and market their products.

"When you can create the product in the state, export it outside the state or nation or country, in exchange for cash, that's what grows the economy," Mason said.

It's a strategy the business community is applauding.

Oklahoma City University Finance Professor Ron Shaw said Oklahoma can no longer rely solely on oil and gas, and it's not just because of the sector's cyclical nature.

"There are forces afoot to try to reduce our dependence on traditional fuels. Those are going to force us in the long run to really diversify the economy to really have an economy," Shaw said.

Something the business and political leaders of the state said they know all too well.

"I think the diversification steps that the city leadership has already taken are what's providing a buffer for us now when you compare us to other economies," Cornett said.

New numbers out this week show Oklahoma City has the lowest unemployment rates out of the 49 metropolitans areas in the US with over 1 million people.

Mayor Cornett said he is not anticipating any layoffs in any area of city government.