Capital Region Leads NY for Productivity Growth
Schenectady and Saratoga Counties Rank 2nd and 3rd in NYS for GRP Growth
The Capital Region last year led New York in productivity growth with help from Schenectady and Saratoga counties, which were the state’s second and third fastest-growing counties for gross regional product (GRP), according to a Center for Economic Growth analysis of new data from the U.S. Bureau of Economic Analysis (BEA).
Boosted by strong productivity gains in manufacturing, government and arts, entertainment, and recreation, the eight-county Capital Region ended 2021 with a $85.56 billion GRP for all industries in current dollars. In chained 2012 dollars, which account for inflationary trends, the Capital Region’s GRP was up 6.6 percent over the year, making it the fastest-growing region for productivity among New York’s 10 economic development regions.
At 8.2 percent, Schenectady County had the Capital Region’s fastest annual GRP growth rate for all industries. That was also the second fastest growth rate in the state and the 15th fastest among 218 Northeast counties. Saratoga County’s GRP grew at an annual rate of 8.0 percent, the second fastest in the region, third fastest in the state and 18th fastest in the Northeast. Albany County was the state’s sixth fastest-growing county at 7.2 percent.
Below are the Capital Region counties that were among New York fastest-growing counties for annual GRP growth (chained 2012 dollars) in select sectors:
1st Accommodation and food services: Columbia County (42.1%)
1st Finance and insurance: Greene County (18.4%)
2nd Transportation and warehousing: Rensselaer County (39%)
2nd Real estate and rental and leasing: Schenectady County (25.8%)
2nd Agriculture, forestry, fishing and hunting: Greene County (85.7%)
4th Construction: Washington County (20.6%)
4th Manufacturing: Saratoga County (11.4%)
5th Private Sector: Saratoga County (12.5%)
5th Arts, entertainment, and recreation: Saratoga County (72.1%)
The five-county Albany-Schenectady-Troy metropolitan statistical area (MSA) had a GRP for all industries of $74 billion. Its annual growth rate was 7.2 percent in chained 2012 dollars – the 22nd fastest among mid-sized metros (250,000-999,999 people). The Glens Falls MSA’s GRP in current dollars was $7.45 billion. Its annual growth rate in chained 2012 dollars was 6.4 percent, the 45th fastest among small metros (<250,000 people).
Government was a major GRP driver in the Capital Region in 2021, accounting for a $1 billion annual increase in productivity (9.8 percent). Leisure and hospitality productivity increased by $5932.6 million (42.4 percent) but remained below pre-COVID levels (-10.3 percent). Manufacturing saw a $461.3 million (6 percent) increase in GRP.
As a New York State Manufacturing Extension Partnership (MEP) center, CEG helps Capital Region manufacturers increase their productivity by providing a menu of technical support services, such as Lean Enterprise Training, ISO Certification Assistance, Technology-Driven Market Intelligence, and CoreValue benchmarking assessments.
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