The Charlottesville Downtown Mall. File Photo/Andrew Shurtleff/The Daily Progress
BY NATE DELESLINE III
ndelesline@dailyprogress.com | 978-7243
Economic stability, along with gains in commercial building and the retail sector, appear to be on the horizon for the Charlottesville region in 2012, according to two longtime industry leaders and a university economist.
Chris Lee is president of Piedmont Virginia Companies, the parent firm of seven construction services companies.
?For our own business, I feel pretty confident about 2012. We?ve been adding employees and in the second half of 2011, work has picked up for us,? Lee said.
?The commercial construction industry is not as volatile as the residential, [but] we certainly had our decrease,? Lee said. ?Revenue is down substantially since the high water mark in 2007-08 and I think that?s true for most of the commercial contractors in this area ? they?ve seen substantial decrease in their revenue.? But overall, ?Most of us are still expecting 2012 to be flat at best,? he said. ?I would say that we appear to be nearing the end and the odds aren?t exactly clear on when or how things will get better.?
Lee is the fourth-generation family member to run the company, which was started in 1939. He?s been with the company 19 years. Overall, it employs about 170 people.
During the recession, Lee said, public-sector work ? government and higher education projects ? has sustained them as private projects diminished. Indicators are that that is changing.
?What we?re beginning to see now are private clients starting to try to get projects going,? he said. Although most of the private-sector projects around the region that are under way are relatively small, ?it?s that first step ? you?ve got to get some projects going before [companies are] going to feel comfortable making bigger investments. For us, we are starting to see a pick up in the private sector activity. That?s a great sign.?
Bob Stroh is general manager of the Charlottesville Parking Center and co-chair of the Downtown Business Association. When it comes to existing properties, Stroh said the fact that there are essentially no vacant commercial retail properties on the Downtown Mall bodes well for 2012.
?That?s great for a downtown anywhere,? he said. The key, he added, is making sure that the Downtown Mall ? or any business district ? retains a broad palette of shopping and businesses opportunities that cater to the neighborhood?s residents and visitors.
Bob Bruner is dean of University of Virginia?s Darden Graduate School of Business Administration. He said November?s presidential election will be the driving force that prompts businesses of all sizes to make key financial and hiring decisions.
?I talk to lots of CEOs and bankers and decision makers, and it seems to me that the business community is waiting to make big decisions about hiring and capital spending until the presidential election in November, at which time a great deal of uncertainty will be over,? Bruner said recently.
A well-known financial economist, Bruner is also known for his research on corporate mergers and acquisitions, corporate finances and financial panics. Bruner has been a UVa faculty member since 1982 and teaches and conducts research in finance and management.
Lee said he generally agrees with Bruner?s outlook, but added that most firms aren?t in a position to wait that long.
?I think, anecdotally, there?s some evidence that businesses might be waiting for the presidential elections,? he said. ?But what we see amongst our clients is that they?re waiting for better economic times ? I don?t know that business can afford to wait [until November],? he said.
In the meantime, Lee said, access to funding remains an ongoing concern for businesses, especially in the building industry.
?For us and our clients, the availability to borrow money has been the biggest constraint. So, for the most part, our clients are trying to get work accomplished, despite the challenging conditions.?
And by the numbers, the long-term trend for 2012 and the outlook for the next several years is for economic growth in the range of about 2 percent, but Bruner noted that it probably won?t be felt quickly, especially with the ongoing financial turmoil in Europe.
?The best-case scenario is that most observers believe that the nadir of the crisis has yet to hit and that Greece and perhaps another country will exit the European Union,? Bruner said. ?And because the financial system is so connected worldwide, some of that pain could radiate back into the U.S.?
Source: http://workitcville.com/2012/02/06/charlottesville-building-retail-leaders-2012-outlook-positive/
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