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Part I: Economic Review and Analysis While the Fargo Moorhead metropolitan statistical area (MSA) economy of 2007 is healthy and experiencing modest growth, a variety of national economic experts project a number of demographic and economic challenges in the near future. These include: .:. a deceleration of growth in the Fargo Moorhead MSA .:. negative net migration in the Fargo Moorhead MSA - i.e., more people leaving the area than moving to the area .:. a decreasing number of high school graduates in Minnesota, North Dakota and South Dakota. Because of these challenges, demographers and economists have not had a bullish outlook on the Fargo Moorhead economy. The reasons they cite include: .:. migration of cost-driven industry .:. workforce availability .:. regional demographics .:. mature economy .:. lack of an emerging growth sector. The last factor, lack of an emerging growth sector, is particularly relevant. Communities that are growing in population and economic activity across the United States fall into one of three profiles: retirement communities, vacation destinations and destinations for emerging sectors in the U.S. and global economy. An emerging sector is one that will drive job growth in the future; a sector that has not yet hit its employment peak and will continue to add jobs for the foreseeable future. Fargo Moorhead's base of primary sector activity has traditionally been driven by industries such as manufacturing, agriculture and back office. These industries are incredibly important and have created our current economy; for these reasons and others, the GFMEDC will continue to provide support for existing businesses in these industries. However, these segments are no longer growing and experts project they will lose employment in the future. Therefore, pursuing them is not a strategy for growth moving forward. 5