Here’s Proof Music Will Speed Up Recovery

In Sound Diplomacy’s work, we’ve found that the growth of music economies in mid-sized cities (175,000 — 750,000 residents) grows at a faster rate than the city’s overall economy.

So, calling all Mayors of mid-sized cities: Listen up. Music is a key sector for you to invest in. Right now. It will speed up recovery. ,

NOTE: This article was co-written with the formidable Michael Seman, author of the Denver Music Strategy & someone who has influenced our work at Sound Diplomacy for many years.

Prior to the COVID-19 crisis, the George Kaiser Family Foundation launched a program offering $10,000, free office space, and support in securing affordable housing to anyone interested in moving to Tulsa. Over 10,000 people applied in its first year and according to interviews with those who made the move, there are few regrets. Now that the COVID-19 crisis has proved that one can truly work from anywhere, the competition for an educated, high-skilled workforce (and its spending power) is unfolding on a much broader landscape. Small to mid-sized cities are offering incentives in hopes of luring those who called cities like New York, Los Angeles, and Dallas home before the crisis, but are now thinking that home is anywhere rich in amenities where one can join the Zoom meeting.

Thriving music scenes and their broader ecosystems are an amenity that has helped brand cities as vibrant and creative while attracting and retaining a workforce that is now more mobile than ever. In recent decades, the story of a successful music scene influencing its city’s economy is found in increasingly smaller cities — think Seattle, New Orleans, Nashville, not large metropolises like New York, Los Angeles, or Dallas. According to several of our recent studies and economic analysis, this trend was accelerating before the COVID-19 crisis hit.

Example 1: Tulsa’s music ecosystem supported 4,392 jobs and generated $335 million in economic impacts for the regional economy in 2018. These jobs represented 1.4% of total employment in the city, which is just higher than the national share of 1.3%. In addition, employment in the music sector grew a staggering 48% between 2004 and 2018 while employment in the county’s broader economy only grew 12% in the same period.

Example 2: In Indianapolis, the city’s music sector supported 8,467 jobs and generated $1.19 billion in economic impacts in 2018. Employment in the music sector grew 5.4% between 2004 and 2018, which was 48% more than total employment growth in the city.

Example 3: In Fort Worth, the music sector was responsible for $770 million in economic impact and 5,584 jobs. This music sector employment represents 2.6% of all jobs in the city during 2016, which is 60% higher than the national share.

Example 4: Huntsville, Alabama’s music sector economic impact is $139 million, totaling 1,471 jobs, which is 1.6% of the city’s total employment. Perhaps most impressive is the economic output of Huntsville’s music sector grew by 104.7% between 2002 and 2016, while the growth of the city’s total economic output only grew by 75.8% in the same time period. A landmark amphitheater, led by Ben Lovett and Venue Group, is slated to open next year.

Example 5: In Northwest Arkansas (Bentonville, Fayetteville, Rogers & Springdale), the music ecosystem grew 104% between 2002 and 2016. In this case, it is lower than the region's economy, which reached 116.8% during the same period, but still represented 1.81% of all jobs, far higher than the national average of 1.3%.

These cities all offer lower costs of living than the larger cities associated with vibrant music scenes. The cost of living in Tulsa is 18.7% lower than in Chicago. In this age of any location with desirable amenities potentially emerging as a viable Zoomtown, the combination of a lower cost of living, a compact urban environment, and a thriving music scene is a perfect storm. However, the crisis that accelerated remote work has also substantially impacted music scenes and ecosystems to the point where their recovery time will be long and depend on support at the local, state, and federal levels. But in this recovery lies an opportunity for small to mid-sized cities, as well as counties within larger cities (like Fulton County in Atlanta, where we also measured the ecosystem and saw the same results).

It is clear that the music scenes and ecosystems in these cities were thriving before the COVID-19 crisis, in some cases outstripping growth in other economic sectors and outperforming music sector activity nationwide.

No matter the size of the city, music can bring economic, social, and cultural growth. If all music is considered and the entire community is engaged, this investment is equitable and will support wider social development. These trends we’ve identified in mid-sized cities, none of whom are as synonymous with music as Austin or Nashville, should be a wake-up call to any Mayor, economic development corporation, tourism board or county commissioner.

Here is a sector that is growing at a higher rate than the rest of the economy. whose retail value of recorded music increased 9.2% in 2020 to $12.2 billion. grew by 8.2% in 2019 globally. If we are poised for what will be the Roaring 2020s, music, especially performed live, will be the central, driving force.

If the objective is, as quickly as possible, to regenerate downtowns and main streets while stabilizing existing industries and positioning them for future growth, investment in the music sector will provide a solid return on investment.

To read any of the studies, or if you have a question about the data, contact me.