The Regional Jobs Initiative, an ambitious grass-roots effort to change the economic infrastructure of the central San Joaquin Valley, is at a critical point, its participants say.

They said progress has been made two years after starting, and they called for continued support. Ashley Swearengin, the RJI's chief operating officer, urged 200 people who attended the group's annual report Tuesday not to give up.

"Keep going. That is the only way we will truly take off," she said.

Swearengin and others acknowledged the challenges -- such as limited resources and political and economic bottlenecks -- facing the RJI's ambitious effort to create 25,000 to 30,000 net new jobs by 2008.

But RJI supporters say that that a new spirit of cooperation is a catalyst. "We were all fighting over who would drive the train," Assembly Member Juan Arambula said. "Now we know government has to remove obstacles and lay new track."

The RJI seeks to diversify the economy, make businesses more competitive, foster innovation and expand local companies.

To help achieve those goals, the volunteer organization is trying to create more jobs in the region's most promising industries, or clusters: advanced manufacturing, construction, health care, information processing, logistics and distribution, tourism, water technology, food processing, innovative energy and software.

The Regional Jobs Initiative also has several task forces in operation, studying innovation, work force development, physical and technology infrastructure, customer service, government affairs, finance and capital, communications and livability.

In a report card of progress, RJI officials said the total unemployment rate in Fresno and Madera counties fell from an average of 11.5% in 2003 to 8.8% in 2005. Only 21 metropolitan regions in the nation improved as significantly.

"While no firm conclusions should be drawn at this stage, it is nonetheless interesting to compare what is happening in each of the RJI clusters to the 2008 targets for growth," officials said in the report.

Businesses in the respective industry clusters added 7,800 jobs between 2003 and 2005 for a 7.1% change. That compared with respective losses of 0.2% and 0.6% in other industry clusters and in government jobs.

About 50% of the new jobs have occurred in the hot construction market, but all clusters showed some growth. Durable-goods manufacturing, for example, created more jobs in the past two years than in the sum of the previous 10 years.

Tourism and travel-related jobs benefited from a growth in restaurant payrolls, while information processing showed "excellent growth," the report stated.

But health care and logistics have not been performing as well as expected, although they have reached 26.2% and 9.1% of their respective targeted goals.

With three years left in the RJI effort, the construction sector has achieved 76.2% of its payroll targets, while tourism is at 50% and information processing is at 36.8%.

Here are some other points noted by the RJI:

Advanced manufacturing: In an effort to make the work force more skilled, the Fresno County Workforce Investment Board provided 52 job seekers with training vouchers and on-the-job training last year; community college students are getting internships; the engineering program at California State University, Fresno, is being expanded; and plans are on tap for an advanced manufacturing center that would help employers.

Construction: Thanks to grants, this industry will be one of four to be analyzed for specific job needs; The Workforce Investment Board has targeted construction for job-training money; San Joaquin Valley College now offers an associate of science degree in construction management; and plans call for a Construction Center of Excellence to promote careers in the trades.

Health care: Training vouchers and on-the-job training scholarships have been offered by the Workforce Investment Board; Fresno State will offer a master's degree in nursing and plans a center for nursing excellence near Bullard and Cedar avenues; and San Joaquin Valley College is enhancing its programs.

Information processing: Leaders from call centers throughout the region meet regularly to promote best practices; training certificates are offered by Fresno State's Division of Continuing and Global Education; and industry professionals are working on van pool and child care programs to aid employees.

Logistics: Fresno City College has developed a certificate in logistics and distribution; the Workforce Investment Board has increased training vouchers by 20%; and advanced degrees are available at Fresno State.

Tourism: With funding from the city of Fresno, a short film about the area's attractions will be developed.

Water technology: Ground was cleared in 2005 for the International Center for Water Technology at Fresno State, which will house research labs and testing facilities and organize the first water technology industry conference in 2007 in Fresno.

Food technology: Representatives are developing a "San Joaquin menu" for area schools, which would promote consumption of Valley products; an inventory of high-demand jobs is under way; and recommendations for addressing the city's wastewater-treatment capacity will be brought forth.

Innovative energy: Recommendations are being brought forth for green building practices, alternative-energy projects and water conservation.

Software development: A total of 40 businesses were identified in this cluster, with leaders developing an internship or peer-mentoring program. Efforts to develop an angel network to fund growth also are under way.

New Valley Times: A new installment of the grass-roots publication will be delivered to 200,000 households Feb 28. The first issue two years ago gave readers a glimpse of what the central San Joaquin Valley might be like in 2015. This one will be a 14-page scoreboard of efforts made in the past few years.

Panelists discussed what some observers call a "brain drain" of young talent to other areas.

Jarah Euston, 26, founder of the Fresno Famous Web site, www.fresnofamous.com, said young entrepreneurs such as herself can launch a business more easily in the Valley because costs are lower.

Euston left Fresno after high school, lived in New York for several years and then had a "calling" to come home. Urban loft housing, more outdoor music venues and other cultural enhancements would help keep young adults in the Valley, she said.

Developer Ed Kashian said government leaders have to think regionally and called for clean, green, affordable and "hassle-free" sites for businesses.

Businessman Doug Davidian suggested Fresno State and businesses pursue inactive patents that are too small for big business to pursue. Those patents are often donated to universities, which develop them.

Fresno Mayor Alan Autry said the RJI has to exist beyond 2008.

"When RJI folds, we fold the future," he said.

The reporter can be reached at snax@fresnobee.com or (559) 441-6495.